0
Submitted by-
SAMRIDHI
SAMRIDHI
Working %
informal
sector
formal
sector
• Total Indian workforce- 487 million
• Total workforce in informal sector- approx...
Employees are considered in informal employment when their employment
not subject to, National labour legislation, Income ...
SAMRIDHI
WHY DO WE NEED IT?
• Various BPL schemes which create confusion
• No proper law for Wage issue
• Grievance redressal is no...
WHY DO WE NEED IT
• Foreign Exchange of our country will increase very significantly and also
investment by global compani...
 The first thing to do is to merge all the different acts and
make them into one social security law. India has many
laws...
2010 2011 2012 2013 2014 2015
95 94 92 90 88 85
5 6 8 10 12 15
GROWTH OF FDI
INFORMAL SECTOR FORMAL SECTOR
FOREIGN
DIRECT
...
LEGISLATIVE
INTERVENTIONS
AND REVISIONS
ON EXISITNG
LAWSOne law should take care of
all, whether it is organized or
unorga...
FINANCEANDHR SPECIAL LEGISLATURES
who will review the labour laws,
create a census of the informal
sector and propose the
...
 Informal sector does not have a single
composite and unified law
 Being 94% they only add to the 50% of the
GDP, it cre...
• Wikipedia.org
• The Hunger Project
• SSA Website(ssa.gov)
• Google
• Labour.nic.in
• articles.economictimes.indiatimes.c...
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SAMRIDHI

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Transcript of "SAMRIDHI"

  1. 1. Submitted by- SAMRIDHI SAMRIDHI
  2. 2. Working % informal sector formal sector • Total Indian workforce- 487 million • Total workforce in informal sector- approx. 457 million • Source- NSSO 0 200 400 600 1980 1990 2000 2010 FORMAL SECTOR INFORMAL SECTOR  India has the second largest workforce in the world with 487 million workers  Unorganized sector can be defined as those workers who have not been able to organize themselves in pursuit of their common interest due to certain constraints like casual nature of employment, ignorance and illiteracy  Out of which 94% or 457million work for the unorganized sector out of which nearly 65% of them are in the agricultural sector. INFORMAL SECTOR OCCUPATION CLASSIFICATION OF INFORMAL SECTOR FORMAL VS INFORMAL SECTOR (In million) SAMRIDHI
  3. 3. Employees are considered in informal employment when their employment not subject to, National labour legislation, Income taxation, Social protection and entitlement to certain employment benefits. Industrial Category No. of persons (in millions) Formal Sector Informal Sector Agriculture 1.39 238.87 Non-Agriculture 26.68 131.5 Mining 1.01 1.25 Manufacturing 6.71 37.07 Basic amneties 1 0.04 Construction 1.17 16.36 Hotels, Restaurants 0.49 40.37 Transport&Comm. 3.15 11.48 Financial Services 1.65 3.29 Community Service 11.49 21.64 All Sectors 28.07 (93%) 370.37 CAUSES: Most workers are daily wage earners or self employed, with no provision for unemployment insurance. They may not have fixed employment due to diff. reasons There are social security laws in India but due to lack of awareness less then 7% have access to it. Plus the existing one has many loopholes Sometimes the workers are prejudiced on the basis of caste and community. If not that their pay is so meager that they go into debt and further bondage Lack of awareness on all the government schemes and misinterpretation of the new laws like FDI lead to low productivity syndrome and tension Most labour enactments deal with Regulation of work and work conditions (without grievance cell). Our country as a whole needs to grow , when max. workforce of the country is immersed into this category , it is our duty to be sure they are properly looked after. SAMRIDHI
  4. 4. SAMRIDHI
  5. 5. WHY DO WE NEED IT? • Various BPL schemes which create confusion • No proper law for Wage issue • Grievance redressal is not there at all • Laws on working conditions are not present • Workers’ Facilitation Centers and Panchayat Raj Institutions are vague in working • Women Workers don’t have any special incentives • Basic Medical Cover is not there • Domestic workers are not organized and lack any voice and are represented by different civil society movements • Overlapping of benefits by the other schemes • Inadequacy of provisioning for the informal sector • Inefficient existing delivery system of the current laws • No protection for workers from Fiscal crunch or lay offs • Due to the constraints or weather changes small farmer’s (who are the majority in informal sector) suicide in large numbers as they get into debt • Stagnant agricultural production, and falling food availability, which also leads to the rise of price gets very tedious to the poor and also to the farmers • Due to lack of nutrition more than 50% women are anemic and 46% children are malnourished • Rotting of food because of bad transport and inadequate storage facility SAMRIDHI
  6. 6. WHY DO WE NEED IT • Foreign Exchange of our country will increase very significantly and also investment by global companies will increase • Production Technology and Technology in manufacturing will be state of the art, thus the informal labours will become more skilled and more permanent jobs • World class scientific, technical and managerial manpower and chance of better education and exposure of the informal sector • Price stability will be there so that the poor and lower middle class don’t suffer • Good international economic & political relations with World Entrepreneur • Stronger economy with increasing GDP and permanent jobs will increase exponentially • Young casual workforce should have more jobs opportunities and Older workers should have job protection. • Unions are protecting rights of informal but at one point they are hitting a stop sign, which is leading to strikes which harms economy and the workforce • Skills training and real wage protection is still a myth in the Indian informal sector. • Labour law reform did not keep pace with economic reforms in India like • 5th Pay Commission did not rule against employment cut which affected the informal sector and also Administration is shifting focus from Labour to product market and its affecting the rights of Labour SAMRIDHI
  7. 7.  The first thing to do is to merge all the different acts and make them into one social security law. India has many laws which point to the concept of social security but none which generalizes.  Social Security should be made a fundamental right and should be enforced by the government on all sectors  Non-payment of wages by any organization without reason should be a criminal offence under the IPC  A dedicated and special ministry should be brought as in the name of the Ministry of Social Security which would look after these laws and make sure they are being followed.  Policies should be made with the consent of local panchayats and unions so as to be sure for the benefit of the working and labor class. This is also to avoid any superficial law being created.  Civil society organizations to be associated in creating awareness and in the process of identification and registration of beneficiaries  Social security should provide the basic amnities like medication, layoff pay, insurance, leave and old age benefits  Convenience of access for the workers and trustworthiness of the implementing agency are the crucial factors fir the confidence of the general population to grow.  It also will provide short term investment money for the Government to gain profit BETTER SOCIAL SECURITY SAMRIDHI
  8. 8. 2010 2011 2012 2013 2014 2015 95 94 92 90 88 85 5 6 8 10 12 15 GROWTH OF FDI INFORMAL SECTOR FORMAL SECTOR FOREIGN DIRECT INVESTMENT EMPLOYMENT % vs TIME (in yrs) SAMRIDHI
  9. 9. LEGISLATIVE INTERVENTIONS AND REVISIONS ON EXISITNG LAWSOne law should take care of all, whether it is organized or unorganized class of workers and there should be called as Composite Labor law The laws and Acts like the Trade union act 1926 and Wages act 1948 should be amended and reviewed and SSA should be strictly followed. There also should be an IPC to make them effective. Trade union structures need change. Outsiders role inevitable but can be limited if there is strong internal consultation and workplace cooperation The further pay commission should shift its focus from produce market to rights of labour. • Converted all food and employment schemes into legal entitlements backed by the law and merge it with the Social Security act. • Universalised food entitlement programmes for children that means ICDS for children under six and Mid Day Meal Scheme for all primary school children should be a necessity and the food subsidy programmes should be well publicized ex. AAY, TPDS. • There should be more research on hybrid food and high yielding crops should be grown. China used this methodology to reduce hunger of their population and increase agro work. • Demonstrations & training of various proper and efficient Agricultural Technologies to make the farmers grow more in numbers and efficient in their methods. SAMRIDHI
  10. 10. FINANCEANDHR SPECIAL LEGISLATURES who will review the labour laws, create a census of the informal sector and propose the amendments . SPECIAL FAST TRACK COURTS who will make the SSA and make an IPC to enforce it. FORMATION OF A SOCIAL SECURITY MINISTRY with a minister, IPS and workers. VOCATIONAL KIOSKS AND LABOUR WELFARE OFFICIALS They will provide training, publicize the existing schemes and create a grievance cell BUDGET FOR AGRO RESEARCH for high yielding Crops and state of art equipment. FOOD SECURITY by increasing Storages facilities. • The Central Budget • Loan from World Bank Fund should be acquired from : • Profits coming from the FDI revenue • Tax Payers money HR-20 FUND- INR 10 cr HR- 20 FUND- INR 40lacs HR-60 FUND- INR 300cr HR-5000 FUND- INR 50cr HR-20 FUND- INR 15cr HR-150 FUND- INR 3cr Total HR- 5300 Total FUND- INR 400 cr
  11. 11.  Informal sector does not have a single composite and unified law  Being 94% they only add to the 50% of the GDP, it creates imbalance  FDI should come in, but policy makers see producer market and not work force benefits  To set up a Proper Social Security Scheme law (pension, health plan, minimum wage etc.)  The NERG act is not followed strictly(it deems min. of 100 days of work to an able man)  Being very large in number there is no proper way to systemize help the informal sector  Majority of the people in this category are farmers, who end up in debt and loss, and contribute to bad GDP  Many of them are unaware of the special provisions like ANNA yojna etc it should be properly publicized  The issue of NON payment is still not in the IPC  There is no vocational training bureau which will give the labour training about state of art technology and no welfare officers there  Club all the laws that are floating and integrate them into one law  With FDI structured favorable to the countries requirement would lead to more work opportunities and increase in GDP  Enact a separate Social Security Ministry and enforce it with law like other western countries  The labour laws should be refined properly to turn the focus back to the workforce and their betterment and also the laws should be more publicized to reach all  Some laws like NERG and Act of 1948 should be enforce by law on every employer  Individual Kiosk containing government should be set up with the Census of India and find out the exact number and occupation of the informal sector  Vocational training on state of art tech and education should be provided  Welfare officers should be made and work for welfare of the informal sector MITIGATION
  12. 12. • Wikipedia.org • The Hunger Project • SSA Website(ssa.gov) • Google • Labour.nic.in • articles.economictimes.indiatimes.com • mospi.nic.in • www.sacw.net • mpra.ub.uni-muenchen.de • cbwe.gov.in • epw.in • mpra.ub.uni-muenchen.de • www.scribd.com • www.jil.go.jp • planningcommission.gov.in • et.al P RAMESH BABU • et.al BAMBER CH • Barthi Birla • Et.al MOHANTY EMERGING INDIA SAMRIDHI
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