Topic No. 14.
Providing social welfare to informal
Team Details : I n U
1. I …. Durwasa Chakraborty, III Sem (II year)
2. I …. Mayank Nema, III Sem (II year)
3. I …. Sanchit Kanchan, III Sem (II year)
4. I …. Vikrant Pandey, III Sem (II year)
5. I …. Vishal Maheshwari, III Sem (II year)
- from Govt. Jabalpur Engineering College JABALPUR (JEC)
In 1972 the ILO in its Kenya Mission
Report, defined informality as a
“way of doing things characterized by”
(a) Ease of entry;
(b) Reliance on indigenous resources;
(c) Family ownership;
(d) Small scale operations;
(e) Labour intensive and adaptive technology;
(f) Skills acquired outside of the formal sector;
(g) Unregulated and competitive markets.
(h) Willful or otherwise tax/ fee etc evasion.
Definition proposed by National Commission on Enterprises in Unorganized Sector -
“The informal sector consists of all unincorporated private enterprises owned
by individuals or households engaged in the sale and production of goods and
services operated on a proprietary or partnership basis and with less than ten
In 1999 same categorized into
three broad groups: -
Category Professional front Your world
of micro enterprises
Employ a few paid workers,
with/ out apprentices
Kone ke kiranewale Uncleji
Machhli wale bhaijaan
Feriwale Sorojit Dada
who own and operate
Work alone or with the help of
unpaid workers, generally
family members and
Dhobi - Manoj bhai
paid or unpaid, including
wage workers in micro
Unpaid family workers,
apprentices, contract labour,
home-workers and paid
Jhadoo-pochhawali Anjit didi
Kaprewali Radha Chachi
Bartanwali Uma Di
Majdooriwale Golu Bhaiyya
Your world consists of Bhaiyas / Didis et al. –
Your Extended Family
Distinguishing Characteristics of Informal Sector
Employment Enterprise / Activities Your world
Absence of official protection
Unregulated and competitive
It generates income for low-
Non coverage by minimum
wage legislation and social
Small scale operation with
individual or family ownership
It helps find solutions in the
absence of formal processes
Predominance of own-account
and self-employment work
Reliance on locally available
It keeps low-income groups
occupied with jobs and
housing, in the absence of local
governments capacities and
Absence of trade union
Ease of entry but Labour
intensive and adapted
technology. Multiple jobs
It provides with cheap labour,
provides help to the aged,
keeps economy on the role
Low income and job security
Absence of access to
institutional credit or other
supports and protections
Indirectly controls crime
Special Your Extended Family not only takes care of itself,
but also provides you with intangible benefits
2004-05 Formal . Informal Total
Public Sector 19.8 3.2 23.0
Private Sector 19.3 1.3 20.6
Household Sector excl.
1.7 6.7 8.4
Total formal sector 40.8 11.2 52.0
Informal Sector 5.3 42.7 48.0
% of total GDP
Share of Labour Input in unorganized Sector (%)
Can You let your Extended Family
to become mere statisticsSpecial
The Bhayyas & Didis
Inadequate social security
Lack of proper skill development programme
Child labour & exploitation of women
The Kakas & Mausis
The Nanis & Dadas
Economic insecurity and long-term fiscal
Rural to urban population shift
Lack of adequate civic amenities like housing,
sanitation, drinking water etc.
Improper health care
Widespread poverty and deprivation
Old age - informal sector is not entitled to any/
adequate retirement benefits.
….or any combination
What happens to your Extended Family ?
Its up to ….
and lack of long-term
Lack of funding to set up
Rural to urban
Lack of adequate civic
Lack of proper skill
Improper health &
health care , insecurity
Inadequate social security
Child labour &
exploitation of women
Old age problems -
informal sector is not
entitled to any/
1. The Annapurna Scheme
2. National Social Assistance Scheme (NSAS)
3. Indira Gandhi National Old Age Pension Scheme
4. Old Age Social and Income Security (OASIS) project.
5. Employees Provident Fund Organization (EPFO)
6. Mahatma Gandhi National Rural Employment Guarantee Scheme
7. Rashtriya Swasthya Bima Yojana (RSBY)
8. Various CM & PM fund for natural disasters
9. Training programmes run by State/ Central Govts.
10. Different AID programmes of Govt. NGOs
11. Funding (Loan) Schemes of the Government
12. Existing Labour laws
+ The World Commission’s call for a “socio-economic floor” & “social protection floor”
House Holder Policies
The ‘House’ announces many such policies /
schemes, at a glance looks adequate; but does it
reach ‘Your Family’ & is it adequate ?
• Article 41. is about - Right to work, to education and to public assistance in certain
cases.— The State shall, within the limits of its economic capacity and development,
make effective provision for securing the right to work, to education and to public
assistance in cases of unemployment, old age, sickness and disablement, and in other
cases of undeserved want.
• As mentioned in the previous slide; there are more than a dozen welfare
schemes for the unorganized / informal sector .
The question is - how the twain shall meet?
• The Solution path for - Providing social welfare to informal
sector workers lies in -
- finding if they are aware of the policies/ schemes
- finding if it is adequate & does it reach them – fully.
Render unto Caesar the things that are Caesar's
One Procedure – No Scissor
1. Capturing through questionnaire/s.
2. Using honest people with an earnest approach!
Solution – Implementation - Impact
(Simple & Easy
& Report of the
surveyor in exact
• Select Honest
to Carry out
Add a chapter in this
regard in the Class X
Make it a compulsory
project for all Class X
students; - questionnaire
is filled for 5 new
persons of this category
by each student
Children are the most
sincere & honest people,
seek their opinion and
award the best report/
effort from each state.
accredited NGOs to
NGOs decide the best
report in every state
-CBSE & SEB -separate
Statistical Units &
NGOs submit report
to Ministry & Media
Govt. takes action
against defaulters &
Pledge Turn Prestige
Drags to Reaches Story
Every year around 20 lakh students
appear for Class X, 20x5= 1 Crore
Questionnaires filled in 1 year.
Practically no addl. load on the exchequer.
Honarium @ Re 2 per Questionnaire to the
NGOs and Award expenses only foreseen.
Drags Difficulty in integrating with government
So inexpensive, Every thing is available….
Democracy and Good Sense Should Prevail.
Nammal Vijayikkum !
• References –
• Informal Sector and Informal Workers in India - Ajaya Kumar Naik
• The Exceptional Persistence of India’s Unorganized Sector - Ejaz Ghani William R. Kerr Stephen D.
• Report of the Committee on Unorganised Sector Statistics - National Statistical Commission
Government of India February 2012
• The Restructuring of the Unorganised Sector in India – Sheila Bhalla
• Demographic ageing and employment in India - S. Irudaya Rajan
• Social Protection Floor – Convened by ILO
• The Global Development Research Centre Report
• Bible - Synoptic Gospels
• The Inter Net