INDIAN SCHOOL OF MINES, DHANBAD
vulnerable is ensured
“De ek duje ka saath, hoga sabka
94% of total
Manufacturing Trade Hotel Services Transport
Greater rise of
Increased Red tape
makes difficult to
go by law.
Lack of knowledge
•Health and education
•Insurance and housing
•Jawahar gram samridhi
• Pension benefits
Relative exception in VAT and excise duty to enterprises keeping
more permanent labour and following labour laws.
Encourage partnership between big and small enterprises as same
labour culture propagates from bigger to smaller.
150% tax exemption to companies giving free insurance to poor and
building homes at subsidized rates.
Digitalization of PDS system and encourage public private
partnership in schemes like MANREGA for good monitoring and
Easy availability of finance for cottage and agricultural industries as
they are mass recruiters.
Agriculture Manufacturing Trade Hotel Services Transport
High A1 M1 T1 H1 S1 TR1
Medium A2 M2 T2 H2 S2 TR2
Low A3 M3 T3 H3 S3 TR3
Backward A4 M4 T4 H4 S4 TR4
Provision of Rs 14000
crore for phase 1 in
Provision of Rs 500
crore per year in
Government to earn
more than 1.5 lakh
crore from taxes.
Ensure Aadhaar card for all by promoting direct
benefit transfers. Link them with PAN number to
identify unorganized economy.
Identification of commercial land by Land Records
Department. Proper details regarding ownership,
usage of land and geographic area to be maintained..
Ensure registration of enterprises on these land by giving
them perks and categorize them based on given table.
Time bound sharing of labour cost of permanent
employees with small registered enterprises..
Special economic zone to be made in each municipality/gram
panchayat where street vendors can earn their living.
Local bodies should maintain records of unemployed,
self employed and economically weak.
They should be the first beneficiaries of the government
employment scheme such as MANREGA.
Based on grade and geographical area minimum
number of workers to be recruited by the enterprise and
their minimum pay to be decided by the government.
10,000 crore for
sharing 40% labour
cost for 500 million
Under budget of Ministry of
Statistics and Programme
budget of 2148.35 Crore.
Provision of 4,00,000
crore in the annual
Hot spots for shopping
so income through
Encourage NGO’s and private players to build houses and health
facilities at subsidized rates in partnership with the people.
Give consultancy services to the needy about various government benefits.
Well administered welfare funds scheme among the
workers in each district.
Craving out national skill development policy for each sector to
make labour efficient and productive.
Each district to have a labour union for each sector, model based on
domestic help union of Mumbai.
•Per Capita income
•Human development index
•Around 500 million workers to get social and financial security
•10 million new tax payers
•25%increase in GDP
•Boost in agricultural and industrial productivity
•Perks for income tax payers
•Benefits for private investments in social sector
•Encouraging entrepreneurship and employment generation
•Resolving labour and land disputes on timely basis
•Continuous monitoring of land usage
•Local bodies to keep track of unemployed and ensure proper
representation in unions
•Encourage auditing of smaller enterprises
•Coordination between IT and UID department to keep track of
• India is the land of culture and languages therefore each sector
has various variants so it would be difficult to categorize.
• Most of the informal sector is uneducated to is would be
difficult to make them go by law.
•Large amount of private investment would be required in
insurance and housing sector, so the government has to ensure
•Sharing labour costs will result in cutting down expenditure on
popular ‘free’ schemes, this would attract huge opposition.
•Lot of disputes regarding labour, land and tax would arise so more
courts and fast track decisions have to be ensured.
•Large amount of data handling would require large number of IT
• Policy changes to encourage PAN registration,tax payments and employment
• Registration of Aadhar cards.
• 100% linkage of AADHAR card with PAN cards.
• Digitization of land records.
• Classification and registration of enterprises in rural India.
• Permanent employee in enterprises and sharing of labour cost.
• Social and financial security to 300 million in rural India.
• Classification and registration of enterprises in urban India.
• Social and financial security for urban India.
• Creating employment at an average rate of 2.5 % to sustain security.
Social Security ahead
•Project report of planning commission on restructuring the unorganized sector in India
•Measuring the Informal Economy: Case Study of India
•Ministry of statistics and programme implementation budget allocation.
•Access to Land in Rural India-Policy Issues and Options
•Conference Paper 2012 Malawi
Human Resource Development for Poverty Reduction; Strategies for theInformal Sector
Harry Gerson Kamdima & Fanny Tasiye Nkunika
• Paper presented at IARIW-SAIM Conference on
“Measuring the Informal Economy in Developing Countries”
Dr. Ajay Kumar Naik
•Human Development and the urban informal sector in Indonesia