The informal sector plays an important role in slum improvement. It provides employment and income generation opportunities for the urban poor through small, self-employed businesses with low entry barriers. While the informal sector helps meet demand for goods and services, it can also cause issues like traffic congestion and environmental problems. Policies aim to improve slums and the informal sector by encouraging self-help groups, providing training and financial assistance, and designating space for informal businesses.

1. INFORMAL SECTOR
Its role in slum improvement
PRESENTED BY :

2. INTRODUCTIO
•NThe term “Informal
sector” has been
introduced in 1972 by
the International
Labor Organization
(ILO) in its Kenya
Mission Report.
DEFINITION
According to NSSO Informal sector are
1. In case of manufacturing industries the enterprises
Informal sector
“The which non-are structured not covered sector under annual that has survey emerged of industries
in the
urban centers as a result of the incapacity of modern
sector to absorb new entrants”
--By ILO and UNDP.
2.In case of service industries or enterprises run by
government i.e., central, state &ULBs or a corporate sector
will regarded as un organised

3. Example :Near the K.R hospital, Mysore

4. Formal Sector
A Sector which encompasses all jobs with
normal hours and regular wages, and are
recognized as income sources on which
income taxes must be paid. Opposite
of informal sector

5. DIFFERENCE BETWEEN
FORMAL AND INFORMAL SECTOR

6. MAIN FEATURES OF INFORMAL
SECTOR ECONOMIC UNITS
Ease of entry
Small scale of the activity
Self-employment, with a high proportion
of family workers & apprentices
Little capital & equipment
Labor intensive technologies
Low skills
Low level of organization with no access to
organized markets.

7. CONCEPT OF INFORMAL SECTOR
informal sector includes heterogeneous
activities
Broadly, the informal sector activities can be
characterized into
• Tiny establishment-based activities

8. HAWKERS – INFORMAL
SECTOR
Hawkers are those people who offer goods or
services for sale from public places, primarily
streets and pavements.
In most Indian cities the urban poor survive by
working in the informal sector
Hawkers perform a number of services for the
urban population
 Mobile units
 Semi static
units
 Static units
(stalls)
 Processed
food items
 Unprocessed
food items
 Non food items

9. ECONOMIC DIMENSION
Hawkers play an important role in the distribution
of small goods in all parts of the cities/ town
Survival strategies for those who work in that
Alternative to unemployment
Availability of necessary goods at affordable cost

10. SPATIAL DIMENSION
Concentration at location having high pedestrian
traffic
Conflict with formal/defined activities
Failure of city government to provide required
services at requested location
No space reserved for hawker in formal residential
areas
Services required by residents
Hawker tend to ‘encroach’ on pavements and other
public spaces

11. INFORMAL ECONOMY
About 370 million workers constituting 92% of the
total workforce in a country were employed in the
unorganized sector while formal sector of the
economy employees only 8% of the total work
force as per NSS Survey 1999-2000.
The contribution of the unorganized sector to the
net domestic product and its share in the total NDP
at current prices has been over 60%.

12. By output (GDP)
By employement
Total estimated through
Infrequent surveys
50% of India's
GDP is informal
Formal/
salaried
Estimated GDP
90% of employement is informal
Source: national statistics commission, credit suisse estimates

13. Source: Wikipédia

14. POSITIVE ASPECTS OF INFORMAL
SECTOR
Employment generation
Functional shopping and convenience
Economic need
Supplement requirement
Competition
NEGATIVE ASPECTS OF INFORMAL
SECTOR
Traffic problem
Nuisance
Environmental
Corruption
Insecurity to resident

15. HOW WE CAN IMPROVE OUR SLUMS
THROUGH INFORMAL SECTOR i.e., ITS
ROLE IN IMPROVEMENT
 Encouraging the SHG and formation of their own
association for informal activities
 Providing financial assistance

16.  Conducting job
oriental training
programs
.E.g. like candle making
 Make provision in foot paths to sell & carry out
there business

17. THE MASTER PLAN DELHI - 2001
PROVISION MADE FOR INFORMAL
SECTOR
Norms for Informal Sector Trade, 1990

18. Norms for Organized Informal Bazaars

19. Conclusion
Informal sector is one which
helps the country like India
having most of the people
below poverty line and these
people not having capacity to
establish their business
formally and also it helps
increases their income which in
turn their living standards also
improved.

20. Reference
• M.S.Ramanujan; I .C.Awasthi:Gayatri: Pandy:
Employment Promotion in urban informal sector:
New age internal publishers.
• P.R. Brahmanada: Indian Economy: deep
publications
• India Market Strategy by Neelkanth Mishra
• D.S. Meshram / ITPI Journal 4 : 3 (2007) 01 - 0
• http://www.businessdictionary.com/definition/formal-sector.