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  2. 2. Informal sector refers to sectors that are not registered by the govt. Mine workers Rag Pickers Construction workers vendors Domestic workers What is Informal sector ? o Employees holding informal jobs in formal sector enterprises, informal sector enterprises, or as paid domestic workers employed by households . o Own-account workers engaged in the production of goods exclusively for own final use by their household.
  3. 3. Vulnerability of informal sector Low income No proper jobs Affects the basic needs Affects their families No proper sanitation No proper housing Poor living conditions No proper education malnutrition Leads to child labour OVER 90% OF THE LABOUR IN INDIA IS INDULGED IN INFORMAL/UNORGANISED SECTOR
  4. 4. DEVELOP UNORGANISED SECTOR….WHY??  DECREASE POVERTY  DEVELOP OUR ECONOMY  DECREASE CHLID LABOUR  CREATE AWARENESS AMONG WORKERS  ERADICATING GENDER DISCRIMINATION  PROVIDE BETTER SECURITY, HOUSING, EMPLOYMENT AND JUSTICE  REDUCE MALNUTRITION Goals and Targets Southern-Asia Reduce extreme poverty by half Very high poverty Productive and decent employment Very large deficit in decent work Reduce hunger by half High hunger Millennium Development Goals 2013 : This chart presents an assessment of progress towards selected targets on the basis of information available as of June 2013.
  5. 5. 0 1 2 3 4 rural urban Category Share of unorganized sector Agriculture and forestry 99.9 Fishing 98.7 Mining 64.4 Manufacturing 87.7 Electricity, Gas, water supply 12.4 Construction 92.4 Whole sale , retail trade 98.3 Hotel and Restaurants 96.7 Transport storage and Communication 82.2 -NSSO Survey 2010 Shows the comparison Between formal and informal sector Share of Labor Input in unorganized Sector (%). Census 2004-05
  6. 6. The percentage of Informal/unorganised sector in India As per the Bop skill Development
  7. 7. Despite the efforts of the Government, the position of the people engaged in this sector is far from satisfactory. Hence… POSSIBLE SOLUTIONS TO THE PROBLEM Bringing the sector under the albeit of partial control of Equal wages Act(Also include the unskilled labourers). Bringing legislation in the parliament making it mandatory for unorganised sector to start with social security contributions(Inclusion of ADHAAR CARD). SHG should be including the poorest of the poor. In this connection the real beneficiaries should be identified without any bias and benefits should reach them. Provident fund scheme which has already started in the private sector to be extended to the lower rung of the society. Protecting selected occupations from global competition.
  8. 8. Strengthen the SHGs:  Centralizing SHGs and providing financial security so that they can operate on a national scale(cover all the rural areas).  Hold elections to elect representatives for the above centralized org.  Monitor state level groups, provide them funds so that they can in turn monitor SHGs at regional level. Linking ADHAAR CARD with the unorganized sector:  Labour department should register number of laborers under a particular contactor.  10% of the pay of each worker will be deducted and will be deposited in the bank in their name.  The accounts should be registered within 5 years lock-in period(in case of emergency money can be withdrawn).  ADHAAR CARD can be used for social security which will be beneficial for workers of any sector.
  9. 9. Incorporating informal sector data into the national accounts • This component raises awareness among the national statistics offices about the importance of collecting and disseminating informal sector and employment data ,incorporating it into employment and GDP estimates. Generate large scale employment • Set up large scale electronic goods manufacturing industries which assemble electronic devices like mobile phones , laptops and other components. This will generate large employment converting huge section of unorganized sector workers into organized sector . Restricting import of certain goods • Put a cap on import of goods like certain vegetables/fruits , various varieties of cloth which are also produced in India so that Indian producers can benefit from availability of market.
  10. 10. Formation of Unorganized Sector Worker Organization VILLAGE MUNICIPALITY TEHSILADAR BLOCK DEVELOPMENT OFFICER SUB DIVISIONAL OFFICER STATE CENTER What will it do? Conduct teaching programs Organize gatherings of unorganized workers from all sectors .  Awareness about work management The given diagram represents the different stages Required to form the organisation. Ex: the unorganised sector workers can make their Own cooperative society and help the underdeveloped workers to enhance their work. (Lijjat papad association in Gujrat)
  11. 11. CONCLUSIONS.. According to the statistics we find that informal sector are in majority , if these sectors are enhanced then there will be a huge improvement in the Indian economy . The definition of the informal sector is more about the ethics of the worker. Working attitude and work environment among the workers is an important aspect for the progress of the informal sector.
  12. 12. Appendix   Wikipedia   india  