FORMALIZATION OF INDIAN INFORMAL ECONOMY

Author Name: Mandeep Kaur

Volume/Issue: 03/02

Country: India

DOI NO.: 08.2020-25662434 DOI Link: https://www.doi-ds.org/doilink/08.2022-65755783/UIJIR

Affiliation:

Assistant Professor, University School of Social Sciences, Rayat Bahra University, Mohali, Punjab, India

ABSTRACT

In India, an overwhelming proportion of the workforce gets employment in the unorganized sector. The education level of these people is extremely low therefore fewer chances to get formal employment. Those engaged in rural areas are significantly more than in urban areas. This is because a large number of informal workers are engaged in farm or agricultural activities. As the government has been unable to establish large-scale manufacturing units, so the labour in the rural sector gets stuck in the informal economy of agriculture. The lack of official statistics on informal economy makes its contribution unaccountable to the national income. Therefore, these workers are deprived of regular jobs, social security and even minimum wages. The supply chain and framework of the informal economy directly impact the economic growth and efficiency of the formal sector. Hence, the welfare and well-being of informal workers and a secure future for their families in every respect is very essential. This paper examines the factors responsible for the emergence and growth of the informal sector, as well as the government's efforts to make it measurable in the GDP of the country and to provide a healthy work environment and social security to the informal workers.

Key words: Informal workers, unorganized sector, gig economy, social security..