MDI Gurgaon

1. Unorganised Sector Problems and Prospects By: Annupam Iyer (7) Arjun Ramakrishnan (8) Bhoomika Diwan (10) Chandni Agarwal (11) Manish Singh (2??) Tarun Rustagi (5??)

10. Estmd Contribution to Employment Year: 1999/00 (Total labour force: 406 million) (GDP share: 63%) Industrial Category No. of persons (in millions) Formal Sector Informal Sector Agriculture 1.39 238.87 Non-Agriculture 26.68 131.5 Mining & Quarrying 1.01 1.25 Manufacturing 6.71 37.07 Electricity, Gas And Water 1 0.04 Construction 1.17 16.36 Trade, Hotels And Restaurants 0.49 40.37 Transport, Storage & Comm. 3.15 11.48 Financial Services 1.65 3.29 Community Services 11.49 21.64 All Sectors 28.07 (93%) 370.37

11. Labour Force Characteristics Year: 1999/00 Urban Share (in percentage) Male Female Total 1. Employed 51.8 13.9 33.7 2. Unemployed 2.4 0.8 1.6 3. Labour Force (1+2) 54.2 14.7 35.3 4. Not counted in the labour force 32.8 71.7 51.4 5. Working age population (3+4) 87 86.4 86.7 6. Non-working age population 13 13.6 13.3 7. Population (5+6) 100 100 100 Rural Share (in percentage) Male Female Total 1. Employed 53.1 29.9 41.9 2. Unemployed 0.9 0.3 0.6 3. Labour Force (1+2) 54 30.2 42.5 4. Not counted in the labour force 30.3 53.9 41.7 5. Working age population (3+4) 84.3 84.1 84.2 6. Non-working age population 15.7 15.9 15.8 7. Population (5+6) 100 100 100

13. How is it calculated? Various Methods used by National Commission for Enterprises in the Unorganised Sector Item CSO Kolli & Hazra Sub Group Definitions of unorganised sectors Follows different criteria for different industry groups mainly dictated by availability of data Enterprises employing upto 5 workers with certain exemptions as informal sector which is a sub set of the CSO's unorganised sector. Proprietary and partnership enterprises employing less than 10 workers Share of Unorganised Sector Varies between 57 and 60 percent since 1993-94 58.5 % of NDP belongs to unorganised sector of which 47.7 % is informal in 2001-02. 55.42% in 1999-2000 and 49.94% in 2004-05 Methodology The GDP estimates of unorganized sector in each compilation category are initially prepared for a bench mark year by using labour input method. The labour input data is obtained from Census of Small Scale Industry, NSS surveys on Employment & Unemployment, DGET etc. For the subsequent years, the benchmark year estimates are extrapolated with appropriate physical indicators and the relevant price indices. Employment estimates from 55th round for all compilation categories.Value added per worker for services from 57th round and for the rest of the sectors from 55th round. Multiplying the employment with value added per worker to arrive at the informal sector estimates. Keeping the overall unorganised sector as defined by CSO constant. Value added per worker estimated from 55th, 56th and 57th round unorganised sector surveys. Employment estimates from 55th and 61st Round EUS survey. Apportioning was not limited only to unorganised sector GDP. In the services sector total GDP was apportioned.

19. Annexures