SRIJAN (REBUILDING) OF THE INFORMAL SECTOR WORKERS
refers to sectors
that are not
registered by the
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.
Vulnerability of informal sector
No proper jobs
OVER 90% OF THE LABOUR IN INDIA IS INDULGED IN INFORMAL/UNORGANISED
DEVELOP UNORGANISED SECTOR….WHY??
DEVELOP OUR ECONOMY
DECREASE CHLID LABOUR
CREATE AWARENESS AMONG WORKERS
ERADICATING GENDER DISCRIMINATION
PROVIDE BETTER SECURITY, HOUSING, EMPLOYMENT AND JUSTICE
Goals and Targets Southern-Asia
Reduce extreme poverty
Very high poverty
Productive and decent
Very large deficit in
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.
Category Share of unorganized sector
Agriculture and forestry 99.9
Electricity, Gas, water supply 12.4
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
Share of Labor Input in
unorganized Sector (%).
The percentage of
Informal/unorganised sector in India
As per the Bop skill Development
Despite the efforts of the Government, the position of the
people engaged in this sector is far from satisfactory.
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.
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
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.
Incorporating informal sector data into the
• 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.
Formation of Unorganized Sector Worker Organization
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)
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
Working attitude and work environment among the workers is
an important aspect for the progress of the informal sector.