Informal Economy in India

Informal Economy in India

In this article we will discuss Informal Economy in India

In this article, we will discuss Informal Economy in India. So, let’s get started.

Informal Economy in India

  • An Informal economy represents enterprises that are not registered, where employers do not provide social security to employees.
  • In many parts of the developing world, including India, informality has reduced at a very sluggish pace, manifesting itself most visibly in urban squalor, poverty and unemployment.
  • Despite witnessing rapid economic growth over the last two decades, 90% of workers in India have remained informally employed, producing about half of GDP.
  • Official Periodic Labor Force Survey data shows that 75% of informal workers are self-employed and casual wage workers with average earnings lower than regular salaried workers.
  • Combining the ILO’s widely agreed upon definition with India’s official definition (of formal jobs as those providing at least one social security benefit — such as EPF), the share of formal workers in India stood at only 9.7% (47.5 million).

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