Understanding the Indian Economy from the Post-Reforms of 1991, Volume II

CHAPTER 2

Dominance of the Unorganized Sector

In the previous chapter there was a brief mention of the unorganized sector; this chapter offers concept, dimension, importance, along with an array of linkages between formal and informal economic activity that needs to be better appreciated. Most people in India earn a livelihood by working for an income. They work for one employer or many or as self-employed or own account workers (those who work on their own account) or as contract workers, home-based workers, and so on in every sector of the economy. The economy of India is not marginal. Roughly, around 92.5 percent of livelihoods, producing up to 50 percent of the country’s GDP, are not registered. Both of these aspects play an integral role ...