India's economic growth in its urban centers has captivated the attention of the world, fuelling the country's consistent GDP growth per annum, attracting a host of multinational corporations and propelling the rise of domestic giants. The country's capability to attract and retain the well educated diaspora and domestic workforce has certainly increased with plenty of jobs to go around. However, current media interest in the economic growth of urban centers is overshadowing progress being made in rural India. As a result, with the prospect of greater and more lucrative job opportunities in urban centers, a significant proportion of the rural population moves to the cities and continue to do so, contributing to the significant jump in city populations and densities, thus putting a strain on inadequate infrastructure and denying migrants access to basic social services

1. MANAGING THE EXODUS
Grounding Migration in India

3. MANAGING THE EXODUS
Grounding Migration in India

4. TITLE
Managing the Exodus: Grounding Migration in India
AUTHORS &
CONTRIBUTORS Nitin Sukh, Senior Manager, Responsible Banking, YES BANK Limited
Rita Soni, Country Head, Responsible Banking, YES BANK Limited
Dr. Debolina Kundu, Associate Professor, National Institute of Urban Affairs
COPYRIGHT No part of this publication may be reproduced in any form by photo, photoprint, microfilm
or any other means without the written permission of YES BANK Ltd.
DISCLAIMER The information and opinions contained in this document have been compiled or arrived at
from sources believed to be reliable, but no representation or warranty expressed is made
to their accuracy, completeness or correctness. This document is for information purposes
only. The information contained in this document is published for the assistance of the
recipient but is not to be relied upon as authoritative or taken in substitution for the
exercise of judgment by any recipient. This document is not intended to be a substitute for
professional, technical or legal advice. All opinions expressed in this document are subject
to change without notice
Neither YES BANK Ltd., nor other legal entities in the group to which it belongs, accept any
liability whatsoever for any direct or consequential loss howsoever arising from any use of
this document or its contents or otherwise arising in connection herewith.
CONTACT ADDRESS YES BANK Ltd
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AMERICAN INDIA FOUNDATION (AIF) NATIONAL INSTITUTE OF URBAN AFFAIRS
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Girls work with confidence in a school located Cycle rickshaw drivers show off their passports for Members of SwachhDhara, a worker-owned
directly in their neighborhood of Amagarh, a slum financing their rickshaw. (Centre for Rural enterprise, fulfill a city government contract by
area of Jaipur. (Bodh Shiksha Samiti, Rajasthan) Development, Guwahati, Assam) cleaning with dignity. (Nidan, Patna, Bihar)
All report photographs by Prashant Panjiar

5. Foreword ForewordForewordForeword
India's population is primarily rural, and much of its economic growth is mainly in the cities. The
limited livelihood options in rural areas and the pull of urban development displaces millions of
individuals and families in India, uprooting them from social structures. One of the unfortunate
consequences of the migration is the interruption of the education of children who migrate,
because it often constrains them to remain within the downward spiral of poverty.
This report addresses a paucity of information on the phenomenon of distressed migration, its
specific relation to the rapid urbanization of India and the growth of slums and the informal
economy. It gives a comprehensive look at what government, civil society institutions and the
private sector are currently doing to increase opportunities in rural areas, while mitigating the
worst impacts of migration for those who do move to urban India.
YES BANK and American India Foundation (AIF) are pleased to collaborate on many of the
challenges faced by people at the margins of the economy. As one of the fastest growing
financial institutions in the country, YES BANK is committed towards expanding its knowledge
base by forming strategic partnerships for constant innovation and development of financial
products designed specifically for the upliftment of the urban and rural poor. YES BANK believes
that private sector involvement in Public Private Partnerships (PPPs) can go beyond the realms
of infrastructure project financing. This report identifies tremendous business scope in
development project monitoring, technology integration, microfinance, organic farming, skills
development and training for service sector integration, to name a few areas. The banking
sector's role in the social and economic progression of India will continue to expand as the
economy grows, opening up avenues for greater public, private and civil society cooperation to
proactively address India's development agenda.
AIF has been working on challenges facing communities affected by distress migration since
2003. AIF's signature program, LAMP (Learning and Migration Program) has been successful in
developing models for educating children of migrant workers and has also been influential in
shaping the government policy to ensure that these children remain in school. Similarly, in AIF's
programs in livelihoods and public health, migrant workers have been a significant demographic
focus.
It gives us great pleasure to present the 2009 Knowledge Report: Managing the Exodus,
Grounding Migration in India. This report is a testament to those organizations that are making a
difference at the grassroots level, bridging the gaps in government-led programs nationwide
and catalyzing India's overall development. We sincerely believe that along with our partner,
the National Institute of Urban Affairs (NIUA), we will create a vibrant dialogue around these
issues and be a part of a transformative journey.
RANA KAPOOR SANJAY SINHO
Founder/Managing Director & CEO CEO
YES BANK Ltd. American India Foundation

6. Contents Contents Contents Contents Preface 5
Chapter 1: Migration in India 7
1.1 Introduction 7
1.2 Types of Migration 7
1.3 Reasons for Distressed Migration 8
Chapter 2: Urbanization & Migration - A bird’s eye view 10
2.1 Urbanization 10
2.2 Growth of Urban Slums 12
2.3 Rise of the Informal Sector 13
2.4 A Way Forward 14
Chapter 3: Grounding Migration - Protection of Migrant Workers 15
3.1 Social & Economic Protection 15
3.2 Social Protection & Security 17
3.3 Economic Protection & Security 21
3.4 Rural Economic Development 28
Chapter 4: Grounding Migration - The Public Private Partnership Way 32
4.1 Public Private Partnerships 32
4.2 Expanding PPPs for Social Development 32
4.3 Infrastructure Development 33
4.4 Ensuring Access and Service Delivery to the Poor 33
Concluding Remarks 35

7. Preface Preface Preface Preface Preface
India's tremendous economic growth in recent years, as well as its renewed efforts at
development and the broadening of its middle class have rapidly swelled its urban population.
Unfortunately, the impact of globalization and the new prosperity have not reached rural India
in the same magnitude. This success consequently draws the marginalized and rural poor to
urban centers where they hope to participate in India's growth and progress to improve their
livelihood opportunities, access better healthcare and avail of education options. This distressed
urban migration is emerging as one of the key developmental challenges for urban India today.
Migrants are disproportionately disadvantaged in the context of urban poverty, urban slums and
informal sector employment1. Additionally, the current infrastructure in India's tier I & II cities is
already stretched, leaving these cities incapable of supporting the needs of the existing
populations. By 2021, India will have the largest concentration of mega-cities in the world,
with a population exceeding 10 million people. This expansion of the urban population is largely
unplanned and uncontrolled. The marginalized distressed migrants are forced into suboptimal
living conditions where they don't have access to the basic requirements of human existence: a
healthy environment, a sustained livelihood, access to education and healthcare, and
participation in social and civic life.
Figure 1: Making Impossible Choices: The Plight of Distress Migrant Communities
Note: Thicker lines indicate more access while thinner lines indicate less access. Civic and social capital refers to social
webs and civic rights such as voting.
The notion of “grounded migration” is to make these basic requirements available to distressed
migrant communities, an important step on the path to empowerment for this marginalized
group. It also seeks to offer choices to distressed migrant communities in their source village by
helping develop sustainable and secure livelihoods options so that they are not forced to leave
the civic and social capital which has been built over generations.
Programs that uplift and de-marginalize the urban poor through livelihoods assistance and
rebuilding civic/social capital are essential to the economic emancipation of India's urban
migrants. The insecurities facing rural populations must also be alleviated so that they are not
forced to migrate under distress. However, for those migrants who freely choose to migrate,
action must be taken to guarantee their basic rights including economic, social, cultural as well
as civil and political rights.
1
Mitra, Arup, and Mayumi Murayama, "Rural to Urban Migration: A District Level Analysis for India", Institute of
Developing Economies, 137 (2008).

8. Preface Preface Preface Preface Preface As Brazilian education theorist Paulo Freire said, 'education is the key tool for empowerment'.
Hence, to help the marginalized retain or regain their political and social capital at either source
or destination, improving the education scenario is the only means of halting a downward spiral.
For example, civil society is bridging the education gap for the children of distressed seasonal
migrants in both rural and urban settings, through a framework that provides educational
security at both source and destination for the children of migrants.
Financially insecure urban migrants often form the core of the marginalized poor in large urban
metropolises. They migrate in hopes of a more secure livelihood, but frequently lose their social
and civic capital. For rural migrants, entry into an urban landscape without the assurances of a
guaranteed livelihood and residence results in the loss of a broader social identity, and the
infringement of their human rights. These poor are marginalized further because of this loss and
are thus left wide open to exploitation.
It is vital to understand and reduce this marginalization and subsequent exploitation of the
urban poor through the development of sustainable livelihood options and providing them
access to financial services with which they can develop roots and eventually get assimilated in
their new milieu, as productive citizens. This report explores the possibility of further expanding
the membership of the Public Private Partnership (PPP) framework to include civil society,
namely non-governmental organizations (NGOs) to create a holistic response to the migration
phenomenon. For example, the private sector can expand access to financial services, the
public sector can promote infrastructure development and welfare programs, while civil society
can focus on ensuring delivery and access to all. This framework will uplift and re-arm distressed
migrant communities with their social and political rights and responsibilities, to ensure that
they have access to services and can make informed choices to guarantee a human existence
and an opportunity to attain their fullest productive potential.

9. Chapter 1: Migration in India
1.1 Introduction
India's economic growth in its urban centers has captivated the attention of the world, fuelling the country's
consistent GDP growth per annum, attracting a host of multinational corporations and propelling the rise of
domestic giants. The country's capability to attract and retain the well educated diaspora and domestic
workforce has certainly increased with plenty of jobs to go around. However, current media interest in the
economic growth of urban centers is overshadowing progress being made in rural India. As a result, with the
prospect of greater and more lucrative job opportunities in urban centers, a significant proportion of the rural
population moves to the cities and continue to do so, contributing to the significant jump in city populations and
densities.
Urban poverty and slum growth bring a host of social, civic, environmental and economic challenges to the
forefront where the Central Government and society are forced to take 'reactive' measures to tackle the issues
involved. Upon this migration, the vast majority of low skilled, illiterate and uninformed segments of the migrant
population find themselves unable to assimilate into the organized sector thus forced into working in the informal
sector where a vast majority work below the minimum wage level. Without having a true understanding of their
social, economic and legal rights, many have been marginalized into residing in the sprawling slums that dot
every Indian city's landscape without the blanket of state sponsored social security to provide some comfort.
1.2 Types of Migration
Figure 2
Migration is defined as the displacement of a person Migrants as per 2001 Census
who leaves their place of birth or of residence for another
place, most often remaining in country. In 2001, 309 30%
million persons were migrants based on place of last
residence, which constitute about 30% of the total
population of the country. This figure indicates an
increase of around 37% from the 1991 census which 70%
recorded 226 million migrants. It is estimated that 98
Migrant Population Settled Population
million people moved within the country between 1991
& 20012.
1.2.1 Destinations
There are four variations of migration depending on where the destination and source are located.
1) Rural – Urban: Traditional rural-urban migration exists in India as villagers seek to improve opportunities and
lifestyles. This has shown a gradual increase, with its share in total migration rising from 16.5% to 21.1%
between 1971 and 2001.
2) Urban – Urban: There has been slight increase of urban to urban migration from 13.6% to 14.7% over three
decades (1971-2001).
3) Rural – Rural: According to the 2001 census data, rural to rural migration has been the most dominant. In
2001, rural to rural migration (during the last decade) has accounted for 54.7% of total migration within
2
Study on Internal Migration and regional disparity, 2002.
7

10. India. The share of rural to rural migration, however, has been on the decline, dropping from the level of 62%
in 1971. Females constitute a significantly higher proportion of rural ward migrants mainly on account of
marriage.
4) Urban – Rural: It is not that only rural to urban migration is prevalent. Though unnoticed, the last decade the
urban to rural migration figure stands as 6.2 million people, i.e. approximately 6% of the population that
moved between 1991-2001.
1.2.2 Durations
The duration for how long a migrant stays at his/her destination is subject to personal and economic
circumstances and it falls into three broad categories:
1) Temporary/seasonal
2) Semi-permanent
3) Permanent
1.2.3 Economics
'Seasonal migration' has long been practiced in the rural areas, particularly among landless laborers and marginal
farmers with limited livelihood options. Often times it begins with male members of the family going out of their
villages to work, returning when the employment is complete due to seasonal and market related reasons.
However with extensive labor brokerage networks which often exploit the migrants especially through unfair
credit terms, families fall into a downward spiral and find more members of the families migrating to make ends
meet. This form of migration is termed as 'distressed' and is required for the survival of the entire family. It is this
migration that requires 'grounding' such that basic needs can be met.
1.3 Reasons for Distressed Migration
Although the subject of migration is complex, it is vital to understand the triggers in order to effectively address
the phenomenon. According to the Census in 2001, reasons for migration have been classified into seven broad
groups – work/employment, business, education, marriage, moved at birth, moved with family and others.
Migration is influenced both by the pattern of development and social structure.
There are a number of factors that cause populations to shift: from individual motivations, local economic
degradation and the alluring pull of better prospects in the urban centers. Moreover, numerous studies show that
the process of migration is influenced by social, cultural and economic factors and outcomes can be vastly
different for men and women, for different groups and different locations.
According to the National Commission on Rural Labor, focusing on seasonal migration3, uneven development is
the main cause of seasonal migration. Inter-regional disparity, disparity between different socioeconomic classes
and the development policy adopted since independence has accelerated the process of seasonal migration. In
tribal regions, intrusion of outsiders, the pattern of settlement, displacement and deforestation, are significant to
drive the phenomenon of migration.
Landless poor, often migrate from economically backward regions for survival4. Livelihood opportunities, its
dearth in the rural and abundance in the urban areas are therefore responsible for the majority of migration.
Media exposure and growth of the metros is another reason that allures people to move from rural to urban
areas.
3
NSSO Report 1999-2000: Consumption report on rural labor households
4
Study Group on Migrant Labor, 1990.
8

11. Marriage accounts for more than half of the migrants. Though this hold true more in the case of females as
women migrating to the husband's place on marriage is a predominant social custom. Education also plays a part
in migration, albeit a small percentage. Natural calamities, terrorism, displacement due to construction etc. have
also been a reason for internal migration and displacement in India.
Migration essentially takes place due to either of the above mentioned factors categorized as the Push (reasons
that cause people to leave their place of residence or origin) or the Pull (reasons that attract people from
different places) factors.
The table below presents a glimpse of the various reasons that were included in the census to gauge the migrant
population across the years:
Table 1: Reasons of Migration
Census 1981 Census 1991 Census 2001 National Sample Survey
Employment Employment Work/ Employment In Search of employment
Education Business Business In search of better employment
Family moved Education Education To take up employment / better
employment
Marriage Family moved Marriage Transfer of service / contract
Others Marriage Moved with Birth Studies
Natural calamities Moved with household Proximity to place of work
Others Any other reason Housing problem
Social / Political problem
Acquisition of own house / flat
Health
Marriage
Migration of parent / earning
member
Others
Source: Census of India 1991 & 2001; National Sample Survey Organization (2001)
9

12. Chapter 2: Urbanization & Migration-A bird's eye view
2.1 Urbanization
Urbanization is the physical growth of rural or natural land into urban areas as a result of in-migration where
trickle down effects include the change in density and pressure on administrative services. Urbanization is further
defined by the United Nations as, 'the movement of people from rural to urban areas with population growth
equating to urban migration'. The UN projects that half of the world population will live in urban areas by the end
of 2008.
In India, 73 million people in rural areas have migrated from 1991 – 2001; of which 53 million have moved to
other villages and 20 million to urban areas – a majority of them in search of work. These figures do not include
temporary or seasonal migration. Migration and urbanization are seen as the direct manifestation of the process
of economic development of any country, more so in the era of globalization. Understanding the causes and
consequences of the urbanisation process in terms of the changes in the spatial and temporal distribution of
population and economic activities, along with the success and failures of the interventions by state and other
developmental organizations may be extremely important for any organization, learning from the past
experiences, evaluating the available policy options and exploring areas of strategic intervention for future
equitable development.
A large part of migration and urbanization in Figure 3
the less developed countries has historically
Number of Statutory Towns and Census Towns,
been linked to stagnation of agriculture and 1981, 1991 and 2001
lack of sectoral diversification within agrarian 6000
Statutory Towns
economies. This is applicable for India as well. Census Towns
5161
5000 Total Urban Centres
The growth in agricultural production and 4689
income has been low, unstable and unequal 4000 4029 3798
across regions over the past several decades, 2996
3000 2758
resulting in lack of livelihood opportunities in
the rural areas. Further, a low rate of 2000 1693
1271 1363
infrastructural investment in the period of
1000
structural adjustment – necessary for keeping
budgetary deficits low – has had adverse 0
1981 1991 2001
effects on agriculture, resulting in out-
Years
migration from several backward rural areas.
Most migrants are absorbed within the urban Source: Population Census of India, 1981, 1991 and 2001, Paper-2,
Rural-Urban Distribution.
informal economy. Designing policy options
which enable rural people to avail of urban amenities without having to shift to a town and strengthening rural-
urban linkages and commutations would also be important measure in addressing the problem of rapid
urbanization.
2.1.1 Data Inaccuracy
The data on urban indicators available from the population censuses has suffered from definitional problems over
the years. For example, the census of 1951 had overestimated the urban population due to non-application of
1
2001 Census – Government of India.
2
Kundu. Et al. (2007) A Strategy Paper on Migration and Urbanisation in the Context of Development Dynamics, Governmental.
Programmes and EvolvingInstitutional Structure in India: A Paper commissioned by United Nations Population Fund (UNFPA).
3
American India Foundation (2006) – Locked Homes, Empty Schools.
10

13. uniform criteria by the states in identifying urban centers, therefore resulting in high annual growth rates. Over
the years attempts have been made to standardize the concept of urban centers by laying down clear criteria for
their identification. Due to the earlier lack of clarity on urban center definitions, the NIUA declares the highest
growth of urban population in the 1980's is grossly misrepresented. This lack of clarity on urban center
definitions is clearly understood in the revelation that between 1991 and 2001 the number of census towns in
India declined by 330 (refer to graph above) despite all phenomena linked with urbanization increasing over the
past few decades. From a planning and resource implementation point of view, such discrepancies in data are
worrying.
The incremental urban population during a decade can be decomposed into four categories as follows:
(a) Natural increase,
(b) New towns less declassified towns (outside the agglomerations),
(c) Merging of towns and jurisdictional changes in agglomerations
(d) Rural-urban migration
The NIUA states that the rate of urban population growth over between 1991-2001 stood at 27%,
significantly lower than that of previous decades. This phenomena is derived from the fact that the percentage of
male lifetime migrants fell from 37.5% to 26% in that period and that the 'intercensal' (those shifting residence
during the last decade) migrant population fell from 23.8% to 11.5%. NIUA attributes the decline in rate of rural
to urban migration on the immobility of the rural poor, the growing assertion of regional and language identity
and the diligent implementation of rural master plans.
Even though there has been a significant fall in the rate of migration over the decades, it does not rule out the
fact that rural-urban migration continues to increase and does contribute to the overall growth of urban
populations, therefore creating pressures on urban infrastructure.
2.1.2 Growth of Urban India
Figure 4
The grow th rate (annual
exponential) in urban areas
Percentage and Growth Rate of Urban Population
during 1941-51 was extremely
in India since 1951
high, 3.5% per annum but that
30 % of urban pop to 27.78
has been attributed to migration total pop 25.72
Annual Exponential
25 23.34
from East and West Pakistan at
19.91
the time of partition of the 20 17.29 17.97
country which brought in 15
massive inflow from across the
10
border, largely into towns and
5
cities in India. The growth rate 3.47
2.34 3.21 3.83 3.09 2.73
declined significantly during the 0
1941-51 1951-61 1961-71 1971-81 1981-91 1991-2001
fifties to 2.3%. This may be Years
attributed to definitional factors
Source: Population Census of India, 1981, 1991 and 2001,
as the Census of 1961 brought in
Paper-2, Rural-Urban Distribution.
rigorous applications of
demographic criteria in identifying urban centers. The growth rate would therefore be considered to be an
underestimate. A growth rate of 3.2% during 1961-71 can be taken to reflect the real urban dynamism in the
country since the definitional or other exogenous factors affected the growth rates in the 1960's. An all time
high growth of 3.8% was noted during the seventies. A less rigorous application of criterion relating to non-
11

14. agricultural workforce in identifying urban centers and a more liberal definition of urban agglomeration are
responsible for this growth. The annual growth rate (exponential) of urban population in India has gone down
since then. It came down to 3.1% during 1981-91 and further to 2.7% during the 1990's.
2.1.3 Regional Patterns & State Growth Dynamics
The pattern of urban growth (or urban-rural growth differential) across states during the first four decades since
Independence exhibits a negative relationship with the level of economic development (income or consumption
expenditure in per capita terms, share of industries in state income, agricultural productivity, etc.). Poor states
such as Orissa, Bihar, Rajasthan and Madhya Pradesh that experienced rapid demographic growth in urban areas
were also those that reported low productivity and high unemployment in agrarian sectors as well as heavy
pressure on urban infrastructural facilities, suggesting the presence of push factors behind rural-urban migration.
The slowing down of out-migration from poor to developed states until the early 1990's, meant that the
displaced persons from agrarian system sought absorption into urban centers within the respective state.
The interdependencies in the development indicators show different development dynamics in the 1990's. The
urban growth exhibits positive correlation with indicators of infrastructural and economic development both in
rural and urban areas, and negative relation with poverty. The states that are experiencing low or no growth in
farm and non-farm productivity, high unemployment, severe malnutrition, etc. are reporting sluggish
urbanization. In contrast, most of the cities and towns in developed states have experienced rapid demographic
growth. Understandably, cities in developed states are not getting their migrants driven by natural, social or
economic calamities but those who have higher levels of skill or economic assets and who find it easier to
establish linkages with the economy of the large cities through socio-cultural channels and avail the
“opportunity” offered through migration8.
2.2 Growth of Urban Slums
A slum is defined by substandard
Figure 5: Percentage of Urban population living in slums by state in 2001
housing with insecurity of tenure
and the absence of one or more
urban services and infrastructure
such as sewage treatment,
plumbing, clean water, electricity
or paved roads etc9. Urban areas
notified as slums by respective
municipalities, corporations, local
bodies or development
authorities were treated as
'notified slums'. A 'non-notified'
slum is a compact urban area
with a collection of poorly built
tenements, mostly of temporary
nature, crowded together usually
Source: Census 2001, Government of India
with inadequate sanitary and
8
Kundu. Et al. (2007) A Strategy Paper on Migration and Urbanisation in the Context of Development Dynamics, Governmental.
Programmes and Evolving Institutional Structure in India: A Paper commissioned by United Nations Population Fund (UNFPA).
9
Davis M. (2006) – Planet of slums, the monster at our door: The global threat of Avain flu and ecology of fear.
12

15. drinking water facilities in unhygienic conditions, if at least 20 households lived in that area. In 1981 nearly 28
,
million people lived in slums, in 1991 there were 45.7million slum dwellers and as per 2001 Census data, there
are 40.6 million people living in slums. It is suspected that this decline is on account of an underestimation of the
number of people living in the urban slums.
2.2.1 Select 2002 Statistics10
• National averages suggested that about 205 households live in each notified slum and 112 in each non-
notified slums.
• The total number of slums in urban India are approximately 52,000 with 51% of the slums being notified
slums.
• It is estimated that every seventh person living in the urban areas is a slum dweller.
• About 65% of slums are built on public land, owned mostly by local bodies, state government etc.
• Maharashtra has the highest number of urban slums in the country totaling 173 – 113 notified and 60 non
notified
2.2.2 Inadequacies of Urban Slums
Newly arrived migrants lack the luxury of living in a notified slum or a 'pucca' (semi permanent) structures unless
they have a well established contact or relative living in one. This particular class of migrants faces the indignity
of living in 'kutcha' (non-permanent) structures which neither fall in the category of notified nor non-notified
slums. Due to their lack of recognition as being residents of recognized slums, these migrants are at the mercy of
the municipal authorities or the private land owners who own the land on which the migrants are squatting.
Corruption and bribery allow these migrants to continue their stay, an unnecessary financial burden to those with
an uncertain future. Rather than the state and its agencies, it is contractors, middlemen, power brokers and
politicians who exercise exclusive jurisdiction over migrants. They exercise authority over their living and working
being able to hire and fire them at will.
Social inadequacies faced by all types of slums:
1) Access to education 2) Policing and crime management
3) Domestic violence and abuse 4) Healthcare clinics
5) Price premium for basic amenities (e.g., food, housing)
Infrastructural inadequacies faced by both non-notified and notified slums:
1) Lack of approach roads 2) Water supply infrastructure
3) Drainage 4) Sewerage
5) Food distribution centers 6) Garbage disposal
The lack of basic infrastructure inevitably leads to the emergence of social issues which includes:
1) Illiteracy – leaving children susceptible to exploitation 2) Domestic violence
3) Alcoholism and drug addiction 4) HIV/STD transmission
5) Malnutrition
2.3 Rise of the Informal Sector
India's slums operate as micro-economic hubs where small scale production and consumption takes place on a
daily basis. A vast majority of migrants who come with the intention of finding employment in the urban areas
are faced with the grim reality of a lack of steady paying and dignified jobs in the organized sector, especially if
the migrants are unskilled. Furthermore, being illiterate makes one susceptible to exploitation in the urban
scenario especially with regards to employment or micro enterprise development, falling prey to illegal
contractors and criminal elements.
10
2002 NSSO Report – Condition of Urban slums in India.
13

16. Caste, kinship bonds, and other kinds of village networks do help rural job seekers to arrange urban based jobs. In
the face of a high natural growth of population, rural to urban migration aggravates the situation of excess
supplies of labor in the urban areas. In the urban informal sector, this tends to reduce the level of earnings and get
manifested in a high incidence of urban poverty. In essence rural poverty is transformed into urban poverty – a
phenomenon described as the urbanization of poverty, thus leaving migrants with little economic choice but to
assimilate into the burgeoning populations of the slums.
The informal sector, by contract, consists of firms which obtain labour at the free market wage where they are
also characterized by ease of entry. The informal sector is not a passive absorber of labor, but rather a dynamic
sector responding successfully to changing demand in the economy and contributing significantly to income and
output growth.
One of the major distinctions between the formal and informal sector is the ability of labor to organize.
The growth of the informal sector and the credit markets, i.e. moneylenders and loan sharks, within it pose a
financial risk to the country as the money flowing through these systems is unaccounted, termed as 'black'
money which makes it virtually impossible for the state to earn taxes from this form of economic activity. The
complete eradication of the informal economy is not a solution to the problem either since that will extinguish
the limited livelihood options available to the bottom of the pyramid migrants.
Informal industries which usually provide employment and business opportunities to bottom of the pyramid
migrants and workers include11.
1) Construction
2) Low-skilled formal manufacturing
3) Civic service – Waste collection and sorting
4) Transport, storage and facilitation communications (courier services)
5) Domestic help, home security and chauffeuring
6) Manufacturing, processing, servicing
2.4 A Way Forward
In India, though rural-urban migration has been found to be modest in comparison to rural-rural migration, in the
context of urban poverty, urban slums, and informal sector employment a great deal has been talked in reference
to rural-urban population mobility.
To make a sustainable difference in the lives of migrants around India, a two pronged approach which addresses
multiple problems is proposed, at the source of migration (rural areas) and its destination (urban areas). The
insecurities facing rural populations must be alleviated so that they are not forced to migrate under distress.
Forging public private partnerships for the private sector and civil society to work with the Indian government to
address the social, environmental and civic impacts of migration will be a positive move towards grounding
migration, where all stakeholders can jointly work towards creating the social and economic infrastructure
needed to facilitate the movement of migrants without them loosing their social and political identity. Rather
than an ailment, rural to urban migration is a boon to the economy since it brings forth the possibilities of cost
effective and productive manpower to fuel industrial and service sector growth, employment, micro enterprise
generation, cultural and national cohesion. The inclusive growth paradigm paves a way forward for the holistic
growth and development of India.
11
Bhattacharaya P.C. (1996) – The role of the informal sector in structural transformation: Some Indian evidence, Journal of
International Development, Vol. 8, No.1.
14

17. Chapter 3: Grounding Migration-Protection
of Migrant Workers
3.1 Social & Economic Protection
The goal of assuring sustainable livelihoods plays an active role in the social and economic protection policy of
India. A comprehensive social and economic protection policy contains 3 broad categories:
1) Promotional measures that aim at improving endowments, exchange entitlements, real incomes and social
consumption
2) Preventative measures that seek to avert deprivation
3) Protective measures to provide relief from deprivation
Although the role of the state in providing social security has been diminishing, it is still the most important
institutional mechanism to deliver social protection. The growing role of the markets in the provision of certain
minimum needs cannot be brushed aside. However, besides the state and the markets there is a third
institutional mechanism that is playing a major role in delivering social protection, civil society – comprising of
individuals, social networks, non-governmental and member based organizations.
Figure 6: Social Protection for workers in the informal economy
Insecurities Sources of Insecurities Social Protection
CORE NEEDS
BASIC NEEDS ECONOMIC NEEDS
STRUCTURAL
STRUCTURAL FOOD EMPLOYMENT
AGE SHELTER ACCESS TO CAPITAL
CASTE HEALTH NEW MARKETS
GENDER EDUCATION LEGAL RECOGNITION
BASIC INSECURITIES
BASIC INSECURITIES ACTIVITY STATUS VOICE REPRESENTATION
FOOD EDUCATION LEVEL
SHELTER INCOME / ASSET DIST.
HEALTH LOCATION
EDUCATION INSTRUMENTS
INCOME BASIC ECONOMIC
LIFE CYCLE PDS-FOOD RURAL WORKS PROG.
INSURANCE EMPLOYMENT BENEFITS
ECONOMIC INSECURITIES
ECONOMIC INSECURITIES
SCHOLARSHIPCREDIT
EMPLOYMENT SHOCKS PENSION ORGANIZATION
CAPITAL ECONOMIC NATURAL TRADING CORPORATION
DEMAND LOSS OF JOB DROUGHT LEGISLATION
SKILL DEMAND CROP FAILURE
LEGAL RECOGNITION PRICE RISE CYCLONE
SOCIAL EXP. EARTHQUAKE
DEATH
INSTITUTIONAL MECHANISMS
INSTITUTIONAL MECHANISMS
CIVIL SOCIETY / SOCIAL NETWORKS
MEMBER -BASED ORGANIZATIONS
MARKETS
GOVERNMENT
Source: Unni et al, 200312
Before forging public private partnerships to tackle the issues of migration, urbanization and poverty it is essential
to understand the government's positions and the center's policy provisions aimed at tackling these issues. The
following sub section will look into the programs initiated by the government and how the work of NGOs either
fill in the gaps of these programs or work with the government to ensure efficient delivery and effectiveness in
target areas.
The Government of India has launched a gamut of programs aimed at tackling the issues of urban and rural
poverty, livelihood development, and education; therefore those highlighted in this report have been mentioned
12
Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms,
Volume 34.
15

18. because they are dynamic, evolving and their aims are specific to the subject at hand – creating educational,
healthcare social and economic capital equally in rural and urban India.
Table 2 : List of Government Program & Acts working towards social and economic security
for the urban and rural poor
Development Government Descriptions Government Ministry
Sectors Programs and Acts & Department
Social Protection & Security
Food Public Distribution A national rationing Ministry of Food and
System (PDS) mechanism, entitling Consumer Affairs
households to essential
commodities at subsidized
prices.
Anganwadis The nodal food distribution Ministry of Women and
centers in rural and urban Child Development
India for lactating mothers
and infants.
Shelter & State Slum Provides funding and Ministry of Housing
Infrastructure Development Boards upgradation of old housing and Urban Poverty
stock. Alleviation
Jawaharlal Nehru A government led PPP to Ministry of Housing
National Urban address poor infrastructure and Urban Poverty
Renewal Mission and lack of basic services for Alleviation
(JNNURM) the urban poor. (implemented by
Ministry of Urban
Affairs)
Health Public Health Centers Healthcare facilities open to Ministry of Health
(PHC) and socio economic groups
Government Hospitals nationwide.
Education Sarva Shiksha Abhiyan Government flagship program Ministry of Human
(SSA) to achieve the Resources
universalization of primary Development -
education. Department of
Education
Economic Protection & Security
National Rural Swarna Jayanti A wholesome poverty Ministry of Housing
Employment Shahari Rozgar Yojana alleviation scheme covering and Urban Poverty
Guarantee Scheme (SJSRY) skills development, business Alleviation
(NREGS) advisory, microfinance, self
help group development and
employment in urban public
works.
National Rural Minimum wage and Ministry of Labor
Employment employment guarantee in for
Guarantee Act rural public works.
16

19. Development Government Descriptions Government Ministry
Sectors Programs and Acts & Department
Minimum Wages Minimum Wages Act A government act to fix Ministry of Labor
of 1948 minimum wages annually.
Welfare Unorganized sector Providing old age pension, Ministry of Labor
workers’ Social Security personal accident insurance
Scheme - Employees and medical insurance to the
Provident fund unorganised worker’s sector.
organization
Legal and Political Multi Purpose National Mission to universalize Ministry of Home
Recognition Identity Card national identity for every Affairs
citizen of India.
Ration Cards Critical identity documents Ministry of Food and
that allow the urban and rural Consumer Affairs
poor to claim commodities
from PDCs at subsidized
rates.
Technical & Industrial Training Vocational and industrial Ministry of Labor
Vocational Training Institutes training for those who have
passed 10th board exams.
Jan Shikshan Sansthan Vocational training for Ministry of Human
migrants and the urban/rural Resource Development
poor living in slums.
3.2 Social Protection & Security
3.2.1 Food
The Public Distribution System (PDS) of the Ministry of Food and Consumer Affairs under the Department
of Food and Public Distribution is a rationing mechanism that entitles households to specific quantities of
commodities at subsidized prices. In most parts of the country, PDS is universal and all households, rural and
urban, are entitled to rations. According to the budget 2008-2009, the Indian Central Government sanctioned
Rs. 320,000 million for the Public Distribution System. Overall food security in India is quite high, in spite of
rampant poverty. This is true whether one views food security from the macro country level or micro household
level. Anganwadis (Ministry of Women and Child Development) are the nodal food distribution centers in
13
rural and urban India for lactating mothers and infants. There are an estimated 650,000 anganwadi centers
employing 1.8 million mostly-female workers and helpers across the country. They provide outreach services to
poor families in need of immunization, healthy food, clean water, clean toilets and a learning environment for
infants, toddlers and pre-schoolers. They also provide similar services for expectant and nursing mothers.
According to government figures, anganwadis reach about 33 million children and 6 million pregnant or lactating
women.
13
Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms,
Volume 34.
17

20. Gaps: There is scope for greater integration
Civil society parallel intervention: Master Choa Kok
between the Ministry of Food and Consumer
Sui Foundation – Ek Muthi Anaaj
Affairs and the Ministry of Women and Child
Development for the effective allocation of grain Ek Mutthi Anaaj appeals to households to make a
and essential food items to anganwadi networks. contribution of just a handful of rice daily. The grain is
Also, the entire distribution system lacks effective deposited in a bucket placed in the homes of the donors
monitoring processes, leaving gaps for and after a month's time, the grain thus collected is sent
malpractice and wastage. Inclusion of innovative to the various hostels where the Feeding Program is
food processing technologies that minimize food being implemented. Through this, EMA seeks
processing costs and create livelihood options contributions from donors in the form of grain. The
would also meet the program objectives. Here donors are based in various parts of Delhi. Besides
private sector involvement in managing and households, educational institutes and establishments
streamlining food supply chains will prove useful have expressed their enthusiasm to start the initiative in
and help reduce food wastage, thus keeping their respective establishments. The initiative is inspired
essential commodity prices stable. and motivated by the age-old values of giving and
helping. The intent is to ask for minimum possible
3.2.2 Shelter & Infrastructure contributions so that we can do whatever we can, to
minimize the debilitating effect of hunger on children,
The State Housing Board and State Slum who are the most vulnerable.
Development Boards under the Ministry of
Housing and Urban Poverty alleviation provide
funding and other support for both new housing and the upgrading of the old housing stock among the poor.
Jawaharlal Nehru National Urban Renewal Mission (JNNURM) under the Ministry of Housing and Urban
Poverty Alleviation and the Ministry of Urban Development (implementing agency) was launched in
December 2005, responding to the problems of poor infrastructure and lack of basic services for the urban poor.
The initiative has two specific sub missions:
1) Addressing urban infrastructure and governance
2) Providing basic services for the urban poor
The integrated development to rehabilitate slums
Civil society & public partnership - Parivartan is achieved by providing 'pucca' shelter, water
supply, sewerage, drains and storm water drains,
Parivartan is a slum networking project funded by the solid waste management, community
World Bank, a collaborative effort between SEWA, toilets/baths, street lighting, community halls
Ahmedabad Municipal Corporation and the slum and child care centers for the urban poor. The
dwellers. The program serves as a model for the program also supports projects to build affordable
Government of Gujarat to develop a state slum policy houses for the urban poor and people living on low
with inputs from local NGOs, slum dwellers and incomes. Approximately Rs. 300 billion has been
concerned citizens sanctioned for the mission spread over the course
of seven years14.
Within three years the mission has achieved the following:
1) One or more projects sanctioned in 54 cities out of 63 mission cities (over 26 states out of 32 states).
14
Ministry of Urban Development website, Government of India.
18

21. 2) Out of 90 infrastructure projects committed for completion before December 2008, 28 projects reported
satisfactory utilization of funds.
3) Public transport (especially Bus Rapid Transport System) is attracting the private sector due to evolving
revenue models and user change regimes.
The JNNURM mission regularly floats tenders and invites private companies to participate in the development of
city projects. Seeing that the mission is well funded, there is tremendous scope for greater private sector
participation from construction, architecture and infrastructure firms to expedite projects and also invest in the
holistic development of such projects through a stronger PPP model. Furthermore, there are opportunities for
accounting firms acting as third party auditors to ensure the legitimate and ethical utilization of funds allocated
for JNNURM.
Gaps: There is a lack of private sector financial tools to assist low income home owners and slum dwellers for
home ownership or improvement, thus leaving the economically weaker sections no choice but to seek help from
the government. Furthermore, there are efficiency gaps in distributing state funds effectively amongst target
groups for home development, leaving space for corruption to thrive
3.2.3 Education
The Government of India has made a number of attempts to reduce the costs of schooling to promote education
by offering a variety of incentives: non-formal education system in collaboration with NGOs, scholarships, free or
subsidized education for girls, free textbooks, free uniforms, midday meals and dry rations. High rates of poverty
and a poor schooling system/teaching standard have resulted in low literacy rates especially amongst child
laborers. As an innovative and to promote education within this group, the government has started evening
classes for illiterate children from nine to fourteen years of age.
Sarva Shiksha Abhiyan (SSA) is the Government of India's flagship programs for achievement of the
universalization of elementary education (UEE). This was mandated by the 86th amendment to the constitution
of India, making free and compulsory education to children of 6-14 years age group a fundamental right. In the
2008-2009 budget, the Government of India sanctioned Rs. 80,000 crores for the further development of this
program. SSA is open to collaborating with NGOs to deliver quality education to the urban and rural poor.
The following education programs are currently running under the SSA:
Kasturba Gandhi Balika Vidyalays – These
institutions have been set up in the rural and urban
settings to address the issue of equity in the
education of girls belonging to the minority and
marginalized communities. So far 1754
vidyalayas are running nationwide. The
Government of India allocated Rs. 80 crore to set
up and upgrade existing hostels attached to the
schools.
Pahal – Launched in 2007, is an initiative of SSA
Children of brick kiln workers stay in residential hostels to continue their education
Uttrakhand for providing school education to while their parents migrate. (Lokadristi, Nuapada, Orissa)
15
Cezayirili G. & Basu K. (2008) – Report on Two Years of JNNURM, Asian Development Bank.
19

22. never enrolled and drop out children in
Civil society & public partnership – LAMP
the age group of 6-14 years who belong
to vulnerable sections of society, e.g. rag AIF's Learning And Migration Program (LAMP) partners in Orissa,
pickers, scavengers, snake charmer, Maharashtra, Gujarat, and recently Andhra Pradesh, directly
beggars and orphans living in urban educate 30,000 children every year, Concerted advocacy efforts
slums. Pahal has since been expanded to have moved the government to support and scale up these
Jharkhand, Rajasthan and Delhi. The models of education. The model promotes: residential hostels for
scheme was conceived in view of the children of distressed seasonal migrants to continue their
shortage of government schools within education in their village while their parents migrate; site schools,
the range of 1 km of urban slums and where children receive education at the migration destination; and
non-acceptance of the Education bridge courses, where children can catch up on courses that were
Guarantee Scheme and Alternative and interrupted by migration. This program has resulted in a significant
Innovative Education schemes by the increase in the number of migrant children receiving education.
children’s parents. It can be said that the
Pahal program is a valid expansion of the SSA has notified all states to identify and include children whose
EGS/AIE programs. The Pahal program is education is affected due to migration. The governments of
a more inclusive approach to education Gujarat, Maharashtra and Orissa have committed to supporting
using the PPP model for effective and replicating seasonal hostels pioneered by AIF. In the 2008-
delivery, by working with Government 09 school year, they are investing $12.5 million to educate
recognized private schools in the vicinity 145,000 children affected by migration. Also this year, the Andhra
of urban slums. The scheme provides Rs. Pradesh government partnered with AIF and six NGOs in
3000 per annum, per child in Hyderabad (and Greater Hyderabad) to provide education to
installments directly to the accredited 23,000 children of construction workers. AP-SSA is providing
schools. The payment of installments is 90% of funds necessary to run this program; AIF covers the
directly linked to the attendance and remaining components with the ultimate goal of enrolling these
achievement level of the enrolled children into mainstream government schools.
children.
Gaps: Despite a significant amount being allocated annually for program
upgrading and maintenance, there is a lack of quality educational infrastructure,
i.e. electricity, desks, computers, textbooks and latrines especially for the female
student. Further, there is a severe lack of quality teachers working in government
schools and there continues to be issues of over crowding and teacher
absenteeism.
3.2.4 Health
Government Hospitals and Primary Health Centers (PHCs) run by the Ministry of
Health & Family Welfare are provisions made by the Government of India. 17%
of all households throughout India did not have access to public health facilities –
26% in the rural areas and 7% in the urban areas. In urban areas, 23% of
households do not use the PHCs either because the treatment was not available
or the facility was too far away. However, this can also be attributed to the fact
Schools at migration work sites allow
that the target population's perceptions of their health, illness and casual factors children to receive an education while their
parents work. (Janarth, Maharashtra)
are largely based on socio-economic, cultural and environmental factors.
16
Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms,
Volume 34.
20

23. Although the government of India has introduced rigorous structural Civil society parallel intervention:
and adjustment programs to sharply reduce their expenditure on Self Employed Women's Association
public health services, high user charges raise barriers for many (SEWA)
people with low health status and income constraints. Those who are
fortunate enough to be provided medical benefits from their In 1992 SEWA introduced a unique
employers do have access to medical and health facilities; however integrated insurance plan for its
members where each member pays
informal sector workers are neither covered by state nor private
Rs. 65 annual premium. The women
medical benefits.
are covered for health, maternity
Gaps: The severe deterioration of healthcare being provided by Public benefits, asset insurance, and life
Health Centers and Government hospitals is highly visible, especially insurance. In 2000, SEWA reported
that 30,000 women were enrolled in
the inability to handle the increase in admissions. Further to this there
the plan of which 50% are in urban
is a lack of private sector intervention in providing micro health
areas.
insurance at low premiums for those below the poverty line.
3.3 Economic Protection & Security
3.3.1 Capital Security
In 1997, Swarna Jayanti Shahari Rozgar Yojana (SJSRY)17 was launched by the Government of India to
rationalized poverty alleviation scheme, replacing three earlier schemes that were running parallel to each other.
The SJSRY aims to provide gainful employment to the urban poor (living below the poverty line) where
unemployed or under-employed, through the setting up of self-employment ventures or provision of wage
employment. In conjunction with the Urban Local Bodies scheme, Community Development Societies (CDS)
were set up to operate two special schemes:
The Urban Self-Employment Program (USEP) provides assistance to individual urban poor beneficiaries for
setting up gainful self employment ventures. This component involves micro -credit from public sector banks.
The scheme also provides basic business skills training and other skills development as a compulsory step before
disseminating micro-credit to the micro-entrepreneurs.
Development of Women and Children in Urban areas (DWCU) aims at helping groups of urban poor women in
taking up self-employment ventures where groups of at least 10 women are provided a subsidy of Rs. 1.25 lakh
or 50% of the cost of the project (whichever is less). The groups have to set themselves up as thrift and credit
societies, where the society will be eligible for an additional grant of Rs. 25,000 as a revolving fund. The fund is
meant for purchases of raw materials, marketing, infrastructure support, one-time expenses on child care
activity, and payment of insurance premium for self/spouse/child by maintaining savings for different periods of
time.
The Urban Wage Employment Program (UWEP) seeks to provide wage employment to prospective workers
living below the poverty line within the jurisdiction of urban local bodies by for the construction of socially and
17
Ministry of Housing and Urban Poverty Alleviation website, Government of India.
21

24. economically useful public assets. Under this scheme the Government of India will pay the prevailing minimum
wage rate directly to the beneficiaries.
Up until 2006-2007, the SJSRY program has received Rs. 1480 crores funding from the Central government:
1) 858,742 people have been given skills development training
2) 155,978 thrift/credit societies have been formed
3) 659,446 people have been assisted to set up individual micro
enterprises
4) 473,404 women have been assisted to set up micro enterprises
5) 588,760 man days (1613 man years) of work have been generated
Gaps: There is urgent need to link microfinance and skills development
modules with private sector companies specializing in the spaces. Further,
SJSRY programs can incorporate stronger business advisory services with
private sector help.
National Rural Employment Guarantee Scheme (NREGS) states that
one adult per house who is willing to do unskilled manual work at the
minimum wage is entitled to 100 days of employment on local public
As owner of a cycle rickshaw, Kasim Ali proudly
works within 15 days of applying. If employment is not provided within 15 decorates his rickshaw to attract more passengers.
days, the applicant is entitled to unemployment allowance up to 100 (CRD, Guwahati, Assam)
days.
The focus of the scheme shall be on the Civil sector & private intervention – Rickshaw Sangh
following works in their order of priority-
AIF's Rickshaw Sangh initiative addresses underlying causes of
• Water conservation and water
poverty and promotes micro entrepreneurship among urban
harvesting
poor and rural migrants. Operational in 3 states – Uttar Pradesh,
• Drought proofing (including a Bihar and Assam – the program enhances the quality of life of
forestation and tree plantation rickshaw drivers by enabling them to get loans from banks to buy
• Irrigation canals including micro and their own rickshaws and bringing them under the purview of
minor irrigation works formal banking services. For banks in search of new clients,
• Provision of irrigation facility to land India's 8 million rickshaw drivers present a $20 million business.
owned by the SCs / STs However, on their own, these drivers lacked the credit-
• Renovation of traditional water worthiness to get a loan to buy their rickshaw. By standing
bodies guarantor for them, AIF has succeeded in drawing them into the
• Land development financial system. For cash-strapped rickshaw drivers, this means
• Flood control and protection the realization of forgotten dreams and legitimization of their
works including drainage in water occupation.And banks such as the Punjab National Bank, AIF’s
logged areas lead partner in this initiative, have added a whole new set of
• Rural connectivity to provide all- clients. The Rickshaw Sangh was conceptualized by Guwahati-
weather access based NGO, Center for Rural Development (CRD), which was
• Any other work notified by Central AIF’s first partner on the project. The Indian Institute of
or State Government Technology (IIT), Guwahati designed a new model rickshaw
which is sturdier and lighter with increased luggage and leg
The scheme ensures that the state is space. AIF now works with CRD and NGO partners in Varanasi,
directly employing the workers. The use Allahabad, and Lucknow.
22

25. of private contractors is strictly prohibited and guaranteeing minimum wage to each household. This scheme has
so far provided employment to 34.7 million rural households that fall in the categories of:
• Scheduled Caste (30.81%)
• Scheduled Tribes (24.06%)
• Households headed by women (48.88%)
• Others (45.13%)
Gaps: There is urgent need to link microfinance and skills development modules with private sector companies
specializing in these spaces. SJSRY programs can incorporate stronger business advisory services with private
sector, thus ensuring strategic micro enterprise growth. NREGS could include a focus on micro-enterprise
development which will also create opportunities for skilled labor in the private sector.
3.3.2 Minimum Wages
The Minimum Wages Act of 1948 of the Ministry of Labor & Employment18 requires the government to fix
minimum wage rates in respect of employment specified to in the schedule and to review and revise it at
intervals of no more than five years. Unfortunately, even though the act is in place, a vast majority of workers do
not receive the minimum wage. In September 2007, the National Minimum Floor Level Wage was increased to
Rs. 80 per day for all scheduled employments from Rs. 66 in 2004 (Ministry of Labor 2007).
3.3.3 Organizing – Trade Union Development
In India, the organization of workers in the informal sector is achieved through three avenues:
1) Radical political movements engage in agrarian class struggles. These are mainly extreme left groups, i.e. the
Naxalite movement, where they have has some success in achieving economic gains for the poor laboring
class.
2) Trade unions of political parties, using a similar approach used by trade unions in the organized sector tend to
organize according to their occupation. We are see excellent trade union formation of unorganized workers
in Kerala under the Communist government.
3) Empowerment groups created by NGOs often organize around micro-credit programs for women, adult
literacy, healthcare services, relief assistance in times of crisis, etc. There are over 2000 NGOs working on
labor related issues in India.19
Gaps: Creating centre led national unions for the informal sectors will provide a sense of security for workers in
the space. The model currently implemented by the state of Kerala can be used as a framework for nationwide
implementation. There is also scope for NGOs to become advocacy and special interest groups providing active
representation services for informal sector unions, also mediating between government and private sector
interactions.
3.3.4 Welfare Funds
The Ministry of Labor and Employment has set up welfare funds for informal workers in six sectors – mines,
bidis, cine, docks, building and construction. Kerala has set up twenty welfare funds where a similar trend has
been followed in Gujarat, Maharashtra, Karnataka, Punjab and Assam for a specific group of worker. The welfare
18
Ministry of Labor website, Government of India.
19
Unni J. & Rani U (2003) – Social Protection for Informal Workers in India: Insecurities, Instruments and Institutional Mechanisms.
Volume 34.
23

26. funds do not have a system of registration, but they do require identity cards to be issued by employers. The
widespread non-implementation of this requirement leads to a large number of workers not receiving the
benefits due to them.
These funds mainly provide medical
Civil society parallel intervention – SwachhDhara
care, assistance for education, housing,
water supply and recreation facilities. SwachhDhara (Clean Earth) is a comprehensive worker-owned,
However, the coverage under all the waste management enterprise organized by AIF's partner NGO in
above programs is little more than 10 Patna, Nidan. With AIF's support, Nidan initiated SwachhDhara to
million out of an estimated 370 create secure livelihoods and a dignified work environment for
million workers in the unorganized
thousands of waste workers and sweepers in Patna city.
sector.
SwachhDhara collects and segregates waste from individual
The Unorganized Sector Workers' households, restaurants and institutions. Organic waste is used in
Social Security Scheme was launched a vermi-compost unit and waste paper is recycled in a paper-
in 2004. The scheme envisaged to manufacturing unit, both of which are self-sustaining enterprises
provide three basic necessities to the through their revenues. Additionally, SwachhDhara receives
workers in the unorganized sector: contracts from the Patna municipality to manage waste in various
1) Old age pension parts of the city.
2) Personal accidental insurance
Labor organization and minimum wage guarantee:
3) Medical insurance
Members attain livelihood security from contracts and guaranteed
minimum wages. They have fixed hours with scheduled breaks,
The scheme is available for the workers
receive uniforms and safety training equipment, creating a better
drawing pay/wages/income not more
dignified work environment. Further, 1,500 of the city's
than Rs. 6,500 per month. To avail
wasteworkers are organized into 125 self-help groups enabling
benefits under this scheme, the worker
will make a single contribution of Rs. access to small business loans.
50 per month where the worker will be
Pride in their work:
in the age group of 18-35 years, and
By issuing identity cards, uniforms (caps, masks, gloves, and
Rs. 100 per month from the workers in
boots), cycle-operated waste collection vans, a regular salary and
the age group of 36-50 years. The
social security, Nidan's intervention ensures the dignity of
government's contribution is at
sanitation workers is maintained. As legitimate competitors in the
1.16% of the monthly wages of the
mainstream economy, SwachhDhara members can negotiate
workers. The scheme is being
with the government for their rights and entitlements. Uniforms
implemented through the Employees
and identity cards, in particular, change the perception
Provident Fund Organization (EPFO).
SwachhDhara members have of themselves and the public's
In 2006-2007 the EPFO had 5.1
perception of waste workers. As SwachhDhara's relationship with
million claims where Rs. 12,106.68
the communities it services formalizes, its members commonly
crores was paid out in claims21.
report a reduction in the vulnerability associated with their
Gaps: By collaborating with the private profession and an increase in respect showed toward them. These
sector, EPFO offices can scale up their efforts provide visibility to wastepickers, ensuring their presence in
visibility nationwide by increasing their public consciousness while paving the way for access to other
offices and staff numbers. entitlements.
20
Ministry of Labor website, Government of India.
21
Employees Provident Fund Organization website, Government of India.
24

27. 3.3.5 Legal & Political Recognition
The Multipurpose National Identity Card (MNIC) was
launched in 2002 by the Ministry of Home Affairs and
is still in the pilot phase across 13 states in specific
districts amongst 2 million people. MNIC's mission is to
create a national identity for every Indian citizen with
the objective of increasing national security, managing
citizen identity and facilitating e-governance. Although
the project is still a long way away from complete
integration into the system, it displays positive steps
being taken by the government to address the issue of Safai Mitra (friends of hygiene) sweep the streets of Patna in full uniform, as
uniform national identity using technology. members of SwachhDhara, a wasteworker-owned enterprise. (Nidan, Patna, Bihar)
Although Ration Cards have been an important part of the Public Distribution System (PDS) in India, they also
act as crucial identity documents. Application for the ration card can be obtained from circle offices where the
head of the family is attested by a municipal councilor and proof of residence is required. For newly arrived
migrants or those living in urban slums who cannot provide any proof of residence, an office will conduct on spot
inquiries by recording the statements of two independent witnesses in the neighborhood. It usually takes 15
days for the preparation and dissemination of ration cards. When applying for additional documents like the
domicile certificates, or to be included in the electoral roles, it is essential to have a ration card to prove one's
identity. Hence the importance of attaining the ration card not only allows migrants, the urban and rural poor to
purchase essential commodities at subsidized prices, but also paves the way for them to be included in the
political processes of the country.
This form of legal recognition and
identity is also vital for entrepreneurs and Civil society & public partnership – Nidan Legal Clinic
workers in the informal sector. This is to
avoid the reality of exploitation by local Nidan initiated a Legal Clinic in Patna to provide services to
officials and criminals who charge legal informal workers, women and children. Users pay a nominal
and illegal fees where in return they offer registration fee for assistance with livelihood and personal
some breathing space for the vulnerable issues. The clinic furnishes information regarding the rights of
to continue their trade. Hence, once informal workers, assists in intervention and mediation, attains
legal status is achieved, migrants can be support from the police and court, and organizes collective
led in the right direction for them to pressure. Workers organized by Nidan report a decrease in police
understand their legal rights obligations abuse, nonpayment of wages and bribe payments. They further
to attain all local government clearances report an increased awareness in their legal rights and greater
willingness to act upon these through collective strength. In
Gaps: The stronger enforcement of law
2006, Nidan mobilized migrant street vendors in Delhi to
can work towards ensuring every citizen protest, lobby with public representatives, and to participate in
of India must have identification. The the legal proceedings of the Supreme Court. The effort
MNIC project can be scaled up resulted in the Municipal Corporation of Delhi inviting license
substantially by contracting ID card applications from Delhi street vendors in September and
production to a private partner. Urban October 2007.
Local bodies together with civil society
22
Ministry of Home Affairs website, Government of India.
23
Bharat Express, Government of India Information portal, website.
25

28. and the private sector can scale up urban slum mapping to ensure all habitants are accounted for and provided
with ration cards.
3.3.6 Technical and Vocational Training
Mainstreaming and assimilating the migrant workforce into the organized sector requires a phenomenal
investment of time, capital and knowledge to ensure effectiveness of the various vocational training and
apprenticeship programs running simultaneously.
The Government of India is currently running the Industrial Technical Institutions (ITIs) under the Ministry of
Labor and the Jan Shikshan Sansthans under the National Literacy Mission of the Ministry of Human Resource
Development. Both the programs have a unique operational structure based on partnerships with the private
sector and civil society thus enabling effective teaching methods and ensured absorption of the trained
workforce into the private sector.
Those who have passed the 10th standard or 8th standard, i.e. 10th boards are eligible to apply for courses at the
ITIs. Private sector association with the ITIs goes only as far as providing placement opportunities to ITI
graduates, The ITCs (Industrial Training Centers) which are privately run and publicly monitored are more efficient
in delivering curriculum and excellent industry tie ups to provide employment and placement options for ITI
graduates. Upon successful completion of the industrial courses, graduates from the ITIs and ITCs are presented
24
with National Trade Certificates issued by the National Council for Vocational Training. In total there are 5114
ITIs,1896 are government run and 3218 are private. They are widely spread in urban and rural India where
25
approximately 20% of the Indian workforce received formal education from the ITIs.
However, the entry eligibility marginalizes the vast majority of the migrant population that has not studied until
the 10th standard. There needs to be provisions made for the less educated sections of society. Furthermore, the
ILO highlights in its detailed assessment on ITIs that several changes are necessary in the structure of the
institutions where greater provision has to be made for accepting workers who have learnt their trade through
informal apprenticeships. Also, the ILO raises the specific issue of high drop out rates because some students are
unable to complete the entire course due to personal reasons and limited learning capabilities. Some of the
suggestions include:
• Introducing smaller, dynamic modules which can be easily completed where the student receives a
certificate of merit upon completion of each module.
• Introducing short courses for educated school leavers (8th
Grade and above) in non-industrial trades that correspond
to the fast growing sectors such as commerce, insurance,
personal care, agriculture-related, forestry and paper,
tourism, IT enabled services, and paramedical
professionals.
Jan Shikshan Sansthan (Institute of People's Education IPE)
is a vocational training program is aimed particularly at Kiran Vaghela became the first of his family to access salaried
employment at this studio through a vocational training program.
migrants and deprived communities who normally live in the (Saath, Ahmedabad, Gujarat)
24
Ministry of Labor and Employment website, Government of India.
25
2003 – ILO Report: Industrial Training Institutes of India, the efficiency study report, Government of India.
26

29. subhuman conditions of the slums, on
pavements, settlement colonies, labor Civil society, public and private partnership: CAP Foundation
colonies etc. Many are first generation
migrants exposed to the grim and In 2004, AIF invested in a market-led vocational training
stark realities of complex urban life program for disadvantaged urban youth developed by Dr.
and the industrial milieu. JSS, formerly Reddy's Foundation in Hyderabad in partnership with the
known and launched as the Shramik Andhra Pradesh government and the UK Department for
Vidyapeeths in 1967, emerged as an International Development. The program was designed to
institute for conducting skill up prepare them for employment in high-growth local industries
gradation in the areas of programs of
that faced shortages of skilled workers. The program trained
non-formal, adult and continuing
over 20,000 youth in nine cities of Andhra Pradesh and had a
education. It provides an academic
job placement rate in excess of 90 percent.
and technical resource support to Zilla
Saksharata Samitis in both urban and
In 2006, AIF partnered with the CAP Foundation to provide
rural areas. The methodology focuses
necessary technical assistance for Saath, an Ahmedabad-
on theory, practicals and field work
experience. The JSS program falls based NGO, to adapt the model. With guidance from AIF, local
under the umbrella of the National industries and the Ahmedabad Municipal Corporation, three-
Literacy Mission, a government month training modules were designed in areas such as
taskforce that aims to impart customer relations and sales, information technology enabled
functional literacy to non-literates in services, BPO, hospitality, bedside patient assistance, and
the 15-35 age group. The NLM is electronic repair. Corporations like Big Bazaar, Westside, Café
being enlarged to provide a non Coffee Day, and ICICI Bank Ltd as well as numerous call centers
formal education program, ensuring and hospitals began to recruit Saath trainees. Over 4,600
that the benefits of TLCs are made
young people trained under the project are now gainfully
available to out of school children as
employed. The government of Gujarat saw the immense
well.26
potential of this project and through the Gujarat Urban
The JSS curriculum is structured into Development Mission matched AIF's investment 3:1. With this
short course modules, ranging from influx, Saath is on track to train and employ 25,000 urban
3-6 months depending on the youth in 8 cities of Gujarat by 2010 in partnership with local
complexity of the subject being organizations. Over the past year, AIF has expanded the
taught. Students can attend as many program into Jharkhand, Chattisgarh and Tamil Nadu with more
courses as they want and attain
states in the pipeline and a target of 100,000 youth job placed
completion cer tificates as
by 2010.
qualifications from the program. The
JSS is working towards getting the
certificates accredited from the NCVT. NGOs like the Smile foundation actively participate in marketing the
program to the immediate locality and also help in operationally managing the program jointly with the Ministry
of HRD and a nucleus of professional staff. There is still scope to develop courses that cater to rag pickers as it has
been noticed that garbage collection and sorting is a rapidly growing industry in the unorganized sector. Also,
teaming up with institutes focused on entrepreneurial development to impart vital business skills that will allow a
vocationally qualified person from the JSS to start and operate a business successfully. This is determined to be
the true path towards poverty alleviation.
26
Ministry of Human Resource Development website, Department of Education, National Literacy Mission.
27