1. Submitted by-
SAMRIDHI
SAMRIDHI

2. Working %
informal
sector
formal
sector
• Total Indian workforce- 487 million
• Total workforce in informal sector- approx. 457 million
• Source- NSSO
0
200
400
600
1980
1990
2000
2010
FORMAL
SECTOR
INFORMAL
SECTOR
 India has the second largest workforce in the world
with 487 million workers
 Unorganized sector can be defined as those
workers who have not been able to organize
themselves in pursuit of their common interest due
to certain constraints like casual nature of
employment, ignorance and illiteracy
 Out of which 94% or 457million work for the
unorganized sector out of which nearly 65% of
them are in the agricultural sector.
INFORMAL
SECTOR
OCCUPATION
CLASSIFICATION OF INFORMAL SECTOR
FORMAL VS INFORMAL SECTOR
(In million)
SAMRIDHI

3. Employees are considered in informal employment when their employment
not subject to, National labour legislation, Income taxation, Social protection
and entitlement to certain employment benefits.
Industrial Category No. of persons (in millions)
Formal Sector Informal Sector
Agriculture 1.39 238.87
Non-Agriculture 26.68 131.5
Mining 1.01 1.25
Manufacturing 6.71 37.07
Basic amneties 1 0.04
Construction 1.17 16.36
Hotels, Restaurants 0.49 40.37
Transport&Comm. 3.15 11.48
Financial Services 1.65 3.29
Community Service 11.49 21.64
All Sectors 28.07 (93%) 370.37
CAUSES:
Most workers are daily wage earners or self employed,
with no provision for unemployment insurance. They
may not have fixed employment due to diff. reasons
There are social security laws in India but due to lack of
awareness less then 7% have access to it. Plus the
existing one has many loopholes
Sometimes the workers are prejudiced on the basis of
caste and community. If not that their pay is so meager
that they go into debt and further bondage
Lack of awareness on all the government schemes and
misinterpretation of the new laws like FDI lead to low
productivity syndrome and tension
Most labour enactments deal with Regulation of work
and work conditions (without grievance cell).
Our country as a whole
needs to grow , when max.
workforce of the country is
immersed into this category ,
it is our duty to be sure they
are properly looked after.
SAMRIDHI

4. SAMRIDHI

5. WHY DO WE NEED IT?
• Various BPL schemes which create confusion
• No proper law for Wage issue
• Grievance redressal is not there at all
• Laws on working conditions are not present
• Workers’ Facilitation Centers and Panchayat Raj Institutions are vague in working
• Women Workers don’t have any special incentives
• Basic Medical Cover is not there
• Domestic workers are not organized and lack any voice and are represented by
different civil society movements
• Overlapping of benefits by the other schemes
• Inadequacy of provisioning for the informal sector
• Inefficient existing delivery system of the current laws
• No protection for workers from Fiscal crunch or lay offs
• Due to the constraints or weather changes small farmer’s (who are the majority in
informal sector) suicide in large numbers as they get into debt
• Stagnant agricultural production, and falling food availability, which also leads to
the rise of price gets very tedious to the poor and also to the farmers
• Due to lack of nutrition more than 50% women are anemic and 46% children are
malnourished
• Rotting of food because of bad transport and inadequate storage facility
SAMRIDHI

6. WHY DO WE NEED IT
• Foreign Exchange of our country will increase very significantly and also
investment by global companies will increase
• Production Technology and Technology in manufacturing will be state of
the art, thus the informal labours will become more skilled and more
permanent jobs
• World class scientific, technical and managerial manpower and chance
of better education and exposure of the informal sector
• Price stability will be there so that the poor and lower middle class don’t
suffer
• Good international economic & political relations with World
Entrepreneur
• Stronger economy with increasing GDP and permanent jobs will increase
exponentially
• Young casual workforce should have more jobs opportunities and Older
workers should have job protection.
• Unions are protecting rights of informal but at one point they are hitting
a stop sign, which is leading to strikes which harms economy and the
workforce
• Skills training and real wage protection is still a myth in the Indian
informal sector.
• Labour law reform did not keep pace with economic reforms in India like
• 5th Pay Commission did not rule against employment cut which affected
the informal sector and also Administration is shifting focus from Labour
to product market and its affecting the rights of Labour
SAMRIDHI

7.  The first thing to do is to merge all the different acts and
make them into one social security law. India has many
laws which point to the concept of social security but none
which generalizes.
 Social Security should be made a fundamental right and
should be enforced by the government on all sectors
 Non-payment of wages by any organization without
reason should be a criminal offence under the IPC
 A dedicated and special ministry should be brought as in
the name of the Ministry of Social Security which would
look after these laws and make sure they are being
followed.
 Policies should be made with the consent of local
panchayats and unions so as to be sure for the benefit of
the working and labor class. This is also to avoid any
superficial law being created.
 Civil society organizations to be associated in creating
awareness and in the process of identification and
registration of beneficiaries
 Social security should provide the basic amnities like
medication, layoff pay, insurance, leave and old age
benefits
 Convenience of access for the workers and trustworthiness
of the implementing agency are the crucial factors fir the
confidence of the general population to grow.
 It also will provide short term investment money for the
Government to gain profit
BETTER
SOCIAL
SECURITY
SAMRIDHI

8. 2010 2011 2012 2013 2014 2015
95 94 92 90 88 85
5 6 8 10 12 15
GROWTH OF FDI
INFORMAL SECTOR FORMAL SECTOR
FOREIGN
DIRECT
INVESTMENT
EMPLOYMENT % vs TIME (in yrs)
SAMRIDHI

9. LEGISLATIVE
INTERVENTIONS
AND REVISIONS
ON EXISITNG
LAWSOne law should take care of
all, whether it is organized or
unorganized class of workers
and there should be called as
Composite Labor law
The laws and Acts like the
Trade union act 1926 and
Wages act 1948 should be
amended and reviewed and
SSA should be strictly followed.
There also should be an IPC to
make them effective.
Trade union structures need
change. Outsiders role
inevitable but can be limited
if there is strong internal
consultation and workplace
cooperation
The further pay commission
should shift its focus from
produce market to rights of
labour.
• Converted all food and employment
schemes into legal entitlements backed
by the law and merge it with the Social
Security act.
• Universalised food entitlement
programmes for children that means
ICDS for children under six and Mid Day
Meal Scheme for all primary school
children should be a necessity and the
food subsidy programmes should be well
publicized ex. AAY, TPDS.
• There should be more research on hybrid
food and high yielding crops should be
grown. China used this methodology to
reduce hunger of their population and
increase agro work.
• Demonstrations & training of various
proper and efficient Agricultural
Technologies to make the farmers grow
more in numbers and efficient in their
methods.
SAMRIDHI

10. FINANCEANDHR SPECIAL LEGISLATURES
who will review the labour laws,
create a census of the informal
sector and propose the
amendments .
SPECIAL FAST TRACK
COURTS
who will make the SSA and
make an IPC to enforce it.
FORMATION OF A SOCIAL
SECURITY MINISTRY
with a minister, IPS and
workers.
VOCATIONAL KIOSKS AND
LABOUR WELFARE
OFFICIALS
They will provide training,
publicize the existing schemes
and create a grievance cell
BUDGET FOR AGRO
RESEARCH
for high yielding Crops and
state of art equipment.
FOOD SECURITY
by increasing Storages
facilities.
• The Central Budget
• Loan from World Bank
Fund should be acquired from :
• Profits coming from the FDI revenue
• Tax Payers money
HR-20
FUND- INR 10 cr
HR- 20
FUND- INR 40lacs
HR-60
FUND- INR 300cr
HR-5000
FUND- INR 50cr
HR-20
FUND- INR 15cr
HR-150
FUND- INR 3cr
Total HR- 5300
Total FUND- INR 400 cr

11.  Informal sector does not have a single
composite and unified law
 Being 94% they only add to the 50% of the
GDP, it creates imbalance
 FDI should come in, but policy makers see
producer market and not work force benefits
 To set up a Proper Social Security Scheme law
(pension, health plan, minimum wage etc.)
 The NERG act is not followed strictly(it deems
min. of 100 days of work to an able man)
 Being very large in number there is no proper
way to systemize help the informal sector
 Majority of the people in this category are
farmers, who end up in debt and loss, and
contribute to bad GDP
 Many of them are unaware of the special
provisions like ANNA yojna etc it should be
properly publicized
 The issue of NON payment is still not in the
IPC
 There is no vocational training bureau which
will give the labour training about state of art
technology and no welfare officers there
 Club all the laws that are floating and
integrate them into one law
 With FDI structured favorable to the
countries requirement would lead to
more work opportunities and increase
in GDP
 Enact a separate Social Security
Ministry and enforce it with law like
other western countries
 The labour laws should be refined
properly to turn the focus back to the
workforce and their betterment and
also the laws should be more
publicized to reach all
 Some laws like NERG and Act of 1948
should be enforce by law on every
employer
 Individual Kiosk containing
government should be set up with the
Census of India and find out the exact
number and occupation of the informal
sector
 Vocational training on state of art tech
and education should be provided
 Welfare officers should be made and
work for welfare of the informal
sector
MITIGATION

12. • Wikipedia.org
• The Hunger Project
• SSA Website(ssa.gov)
• Google
• Labour.nic.in
• articles.economictimes.indiatimes.com
• mospi.nic.in
• www.sacw.net
• mpra.ub.uni-muenchen.de • cbwe.gov.in
• epw.in
• mpra.ub.uni-muenchen.de
• www.scribd.com
• www.jil.go.jp
• planningcommission.gov.in
• et.al P RAMESH BABU
• et.al BAMBER CH
• Barthi Birla
• Et.al MOHANTY EMERGING INDIA
SAMRIDHI