The paper addresses two basic questions in the globalization literature: (1) is globalization a threat or an opportunity? And (2) how far does market deepening actually encourage genuine substantive democracy in the world? Many scholars have argued that globalization has resulted in increasing inequality and marginalization of the poor, which is not conducive for democracy. Drawing on the case of India, this paper, however, argues that the rolling back of the welfare state and the demise of developmentalism led to the mobilization of the masses against the elitist and exploitative agenda of globalization. As a result, a counter-hegemonic vibrant civil society has emerged, which challenges the hegemony of the elites and channels the empowerment agenda of the subaltern groups. This new politics of the subaltern is grounded on the idea of social justice and citizenship rights, which is redefining the nature of the Indian state and democracy.