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  2. 2. Social Welfare of the Unorganized Sector: An Economical Approach TEAM: DENKER, CNLU Apurva Sharma, Anjali, Shreeyam Jain, Prity, Ajita Patnaik
  3. 3. The unorganised sector consists of all unincorporated private enterprises owned by individuals or households engaged in the sale or production of goods and services operated on a proprietary or partnership basis and with less than ten total worker. The characteristic features of this sector are ease of entry, smaller scale of operation, local ownership, uncertain legal status, labour intensive, operating using lower technology based methods etc. Ministry of Statistical and Programme Implementation report, more than 90% of India’s workforce belongs to the informal sector and accounts for 50% of the national product. 99.9% workers in the agriculture and forestry sectors are unorganized. 98% of unorganized industrial labour does not have any social security protection The globalisation of Indian economy and the programmes of economic reforms have reduced the capacity of public sector enterprises to carry the large stock of surplus sector. In a way globalization has motivated workers to move from the organized sector to unorganized sector due to surplus of labour in the public sector. Organized sectors, relatively any day enjoy better benefits than the unorganized sectors like higher wages and greater job security. The welfare and interests of about 270-300 million workers in the unorganized sector cannot be overlooked. Real tragedy of Indian labour market lies in the unorganized sector where workers have little protection from unscrupulous employers.
  4. 4. Organized Sector Higher Pay-scale Job Security Better exposure/growth Stability Ample funds give way to improved paraphernalia Unorganized Sector Low Pay-Scale No job Security Narrow growth Unstable Dearth of funds often curbs the exposure opportunity to grab better apparatus Advantage over existing system: Using the existing skills, resources and assets better allocation can lead to proper channelization and desired results.
  6. 6. AMPLE LAWS- No Lack of Legislations, Ideas, Concepts or for that matter Agendas, like National Social Security Fund for unorganized sector workers, NSDC, Unorganised Workers' Social Security Act, 2008, RSBY benefits extended to MNREGA, SWAVALAMBAN for NPS subscribers. REQUIREMENT OF STRICT EXECUTION- All that is required is strict and innovative execution methods. For e.g. with regard to banking issues of people in unorganized sectors, should be allowed opening of savings accounts even if they don’t own houses, simply by showing Genuine ration cards without having to ask the land lord to act as a guarantor which is a common practice. Because the need of time calls for imposing some faith in them so that the sector can efficiently be uplifted. Also if the interest rate is fixed at 2% then it should be reduced to 1.5% so that the remaining 0.5% is kept as a contingency fund that can be accessed only by reasonable application to the bank. WE SAY: “What thousand existing dead laws cannot do, one properly executed law can do.” APPOSITE EXECUTION METHODOLIGY
  7. 7. HUMAN AND FINANCIAL RESOURCES/ LEVERAGE Human resources i.e., of skilled P.O, Bank, Management employees, government workers and socially responsible social workers must used for the principle. We suggest employing students trained only for the rationale esp. Management students. Leverages which RBI thinks fit shall be applied. CORE LEVEL If the above said concept is a success, inclusion of local banks at advanced level, then National, Private and State banks shall be done and all under the check & leadership of RBI with strict implementation regulations controlled by the welfare department constituted for the rationale by the government. A chosen head or management skilled employee of the Banks can be made responsible towards the same. PRILIMINARY LEVEL The concept shall be introduced in the market on a small level like in post offices to begin with and check the efficiency. Possibly a body within the P.O specially towards the achievement of required purpose shall be made with the responsible head who shall be appointed by social welfare department and helped/aided by P.O employees IMPLEMETATION
  8. 8. EMPLOY THE UNEMPLOYED The biggest challenge India is facing is Unemployment leaving a large chunk of youths potential being wasted, Dire need of time calls for proper channelization of these resources and using this energy towards the disadvantaged society. Fig: Chart showing rising unemployment rates from the year 1948 to 2012. Today, more than half of India’s population is under the age of 25 years, with 65 percent of the population under 35 years of age, in order to accommodate the 300 million people that will join India's workforce between 2010 and 2040, India needs to create roughly 10 million jobs a year. None the less a very evident solution to the problem of unemployment thus exists in employing the youth of India and specifically towards organizing the unorganized sector by proper channelization of resources and workforce.
  9. 9. A body specially for the purpose of allocating the youths their duty and providing them skills and training towards the propose of appointing them for social welfare activities must be done. Where the body must consist of a government appointed heads who have the realization of their responsibility towards the society shall be done, Working under a public-private partnership with firms that will only and only focus towards the Social wellbeing. This will not just give them employment but job security too with a bonus help to the society for its up-liftment that will be a major help to the government. For e.g. In case of awareness programmes which government should pay more heed to in unorganized sectors; making them aware of their rights with regard to their work and its systematization they should appoint job seeking graduates churning out of thousands of Indian institutes that are not just educated but capable too. Proper funds must be allocated by the government with the help of private partnerships India churns out approximately 25% graduates annually out of which 47% are unemployable as per the Aspiring Minds National Employability Report. Using this workforce and resource, the dual objective of social welfare and employment of the youth can be achieved. This idea can be explained with the example of MBA graduates. IMPLEMETATION PROCEDURE
  10. 10. HYPOTHETICALLY Let us take 34% of MBA graduates in our country who are unemployed in spite of having the skill and qualifications, WENEED There exists an unorganized sector for e.g. the occupation of making brick kilns in the economy whose resources if properly channelized would boost the economy. With the problematic system of middle men and lack of appropriate marketing techniques, What is required is apt market training and awareness of the same to establish a direct contact with the consumers. WEPROPOSE Thus we propose that these ‘unemployed’ MBA students be employed through Public Private Collaborations and given the assurance of working in a public sector as a government employee and on the other hand woken up to their responsibilities before being appointed. MODEL FOR IMPLEMENTATION OF YOUTH EMPLOYMENT CONCEPT
  11. 11. PROPER CENSUS AIMING AT EFFICIENT GDPACCOUNTING MODEL FOR IMPLEMENTATION OF PROPER GDP ACCOUNTING AS TO THE INFORMAL SECTOR The Census conducted lacks classification and exactness as to informal sector annually on a large scale. Since census conducted is in bits and pieces and confined to areas covered under any specified organization for their own benefit. Required is a record of these workers classified and mentioned on the criteria so that proper formulation and implementation of policies by the government could be done. Their proper .Such division could be instrumental to the government in analysing their contribution to the National Income and GDP and providing measures for the improvement of the same. Thus we propose that a proper census be conducted annually which should be divided categorically and published effectively for data to be matched and growth marked. The workforce for the same should not be an issue for the government taking into consideration the huge problem of unemployment. Funds if available for census twice a year it hopefully can also be tackled by the government.
  12. 12. MODEL FOR IMPLEMENTING PROVISIONS FOR EDUCATION OF CHILDREN Very strict observation when it comes to children taking part in unorganized sectors and they should be prevented from taking part in it since legal restrictions like Child Labour Prohibition and Regulation Act, 1986 exist. These children need a safe environment from what they are already going through considering they are forced into this sector by unscrupulous parents greedy for money paying least heed to their upbringing and education. Hence we propose that government where it finds such children working illegally in such sectors should be pulled out from existing conditions and give them shelter in government instituted Reformatory Homes tending to impart basic education, vocational skills and better environment for an all-round development.
  13. 13. REFERENCES • h1.pdf •National_employability_report_engineers_2011.pdf •47_graduates_in_india_are_unemployable_for_any_job_aspiring_minds_n ational_employability_report_graduates.pdf • Grads_in_India-nid-103058-cid-1.html • •