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  1. 1. Providing Social Welfare to Informal Sector Workers Team Members-Utkarsh Upadhyaya, Soham Farkande,Aditya Mukherjee Behera, Lakshman Verma, Sheshadri Bhattacharya- IIM-Indore Protecting the Vulnerable
  2. 2. It 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 total workers. In the Indian context way we can say that this sector includes: In the case of manufacturing industries, the enterprises not covered under the Annual Survey of Industries (ASI) are taken to constitute the un-organized(informal) sector. ii) In the case of service industries, all enterprises, except those run by the Government (Central, State and Local Body) and in the corporate sector were regarded as un- organized(informal). Informal Sector In India 0 50 100 China Thailand Sri Lanka Vietnam Philipines Indonesia Pakistan India Nepal Contribution of Informal Sector of India viz-a-viz Other Countries In percentage(%)
  3. 3. According to the statistics released by ILO, more than 80% of the able workforce is in the informal sector, be it push–cart vendors or farmers or home based jewellery business. According to the data of informal employment vs. GDP/capita, India belongs to the group of low GDP/capita with high informal employment. This clearly shows that though we have achieved a target GDP but the per capita ratio still remains abysmal. This means that most of the growth that we are making is not going to those who work hard to make it possible yet are subjugated to the harsh realities of Indian way of systems. Scenario Of Informal Sector In India Formal and Informal Employment by sector estimates Agriculture (Informal) Agriculture (formal) Services (informal) Services (formal) Industry (informal) Industry (formal)
  4. 4. The informal sector includes: • The persons engaged in very small-scale or causal self-employment activities may not report in statistical surveys that they are self employed. • Certain groups of persons such as out-workers, sub-contractors, free-lancers or other workers whose activity is at the borderline between self-employment and wage employment. • Persons employed in private households as domestic servants, gardeners, etc. As of 2005 more than 90% of the total workforce in India are employed in informal sector. There has been a drastic increase in the informal sector as compared to formal i.e 29.69 million to 5.93 million (differential data of 1999-00 & 2004-05) 60% of which is absorbed by agro-based industries. Hence for our purpose we divide the informal sector into agro-based and non agro-based industries. Identifying the Informal Sector
  5. 5. This includes daily wage workers and people who sell services on a daily basis. Due to the erratic nature of this industry, people are generally off-duty due to which there is a huge loss to their income. On the line of the above mentioned organization, another organization shall be formed which shall provide work to them. It will have call centres cross different cities with each centre having a certain no. of workforce and based on the requirements of the clients employment be given to them. Scenario And Plan For Non-Agro Based Sector 0 10 20 30 40 50 60 70 80 90 100 Rural Urban Figures in percentage
  6. 6. Includes farmers, agro-based product sellers, vendors, small-time shopkeepers and push-cart vendors. Being in informal sector they face a lot of completion in the market for their products to be sold. With heavy competition they have to sell at a very low price which not only means severe loss to their income but also loss in their morale. Our plan thus includes a scheme that will create a bridge between government and farmers so that they can directly sell their produce to the authority at the price mutually decided by the farmers and the authority. The brokers shall work for the government and salary be given accordingly so that we do not hamper their income as well. As for venders, in order to help them an organization shall be formed which shall include all those vendors. They shall be provided with cold storage vans in which they can easily travel and sell their vegetables and fruits without much loss due to environmental and other such factors. 0 50 100 150 200 250 300 350 Male Female Rural Urban Scenario And Plan For Agro Based Sector Figures in per thousand distribution of workers
  7. 7. In order for the plan to work, there is a need to work hard to make them realize the true nature of this programme. Not only will they be provided a stable source of income, they will also lead a harassment free life. There is also a need to include necessary schemes like free health care, accident benefits, old-age pension, micro-loans, subsidized ration and education for their children in return for their services. To play their role more effectively, local governments need improved technical, administrative, and financial capacity through genuine decentralization and increased support from national and international development agencies. How Will It Help Them ?
  8. 8. As this a large scale project there will be a need for a pretty significant amount of workforce for the same. Most of the recruits will be taken from rural colleges and allowed to work in their native areas as they would have a first hand account and experience of the scenario there. Workforce at Local and Higher Level Apart from that the higher committees who will oversee the working of this grass- root workforce and ensure its stability and smooth functioning will include retired judges, army officers and retired senior bureaucrats who can work on an honorary basis.
  9. 9. • We shall seek help from Govt. and NGOs. • This needs a high amount of money for which we shall conduct fundraisers and with that we shall seek help from tycoons (which will only increase their brand value and goodwill). • We shall utilize the surplus storage which rots every year. According to reports, at least 44000 crores of food grains rot every year and thus we can make the best use of. • We would also like to take this point to a higher level by requesting govt. for donations and ask them to move a bill for provision of a small part of taxes be used for this purpose. Funding
  10. 10. • Anything which is not risky is not worth pursuing. To minimize the risk associated with it we shall start the initiative at a smaller level in only few districts and then move on to state and subsequently national level if all goes well. • We are very optimistic about the project and anticipatory about its success. Realizing the intentions and thought behind, it is worth pursuing because it will not only help us in building their lives but it will also help in fulfilling the dreams of our founding fathers which is to create an India in which everybody can sleep with their bellies full under a solid shed and a warm bed. Challenges and Future Prospect
  11. 11. Through this presentation we have hoped to bring forward the condition of our Informal sector and a plan to help in their upliftment by staying within the framework of the functioning of the Government. The potential held by the informal sector is massive and if harnessed properly and effectively can change its status from being a burden to one of the biggest assets of our country. Proper and timely mitigation of problems not only in the issue of social upliftment of the informal sector, but in all problems faced by India can put us on the path to becoming a world superpower. Analysis and Conclusion
  12. 12. • Women in Informal Employment: Globalizing and Organizing (WIEGO) • International Social Security Association (ISSA) • IMF Direct-International Monetary Fund’s global economy forum • National Sample Survey Organization (NSSO) • World Bank Survey Information • Google • Wikipedia References