1. SRIJAN (REBUILDING) OF THE INFORMAL SECTOR WORKERS

2. Informal
sector
refers to sectors
that are not
registered by the
govt.
Mine
workers
Rag Pickers
Construction
workers
vendors
Domestic
workers
What is Informal sector ?
o Employees holding informal jobs in formal sector enterprises, informal sector
enterprises, or as paid domestic workers employed by households .
o Own-account workers engaged in the production of goods exclusively for own
final use by their household.

3. Vulnerability of informal sector
Low income
No proper jobs
Affects the
basic needs
Affects their
families
No proper
sanitation
No proper
housing
Poor
living
conditions
No proper
education
malnutrition
Leads to
child
labour
OVER 90% OF THE LABOUR IN INDIA IS INDULGED IN INFORMAL/UNORGANISED
SECTOR

4. DEVELOP UNORGANISED SECTOR….WHY??
 DECREASE POVERTY
 DEVELOP OUR ECONOMY
 DECREASE CHLID LABOUR
 CREATE AWARENESS AMONG WORKERS
 ERADICATING GENDER DISCRIMINATION
 PROVIDE BETTER SECURITY, HOUSING, EMPLOYMENT AND JUSTICE
 REDUCE MALNUTRITION
Goals and Targets Southern-Asia
Reduce extreme poverty
by half
Very high poverty
Productive and decent
employment
Very large deficit in
decent work
Reduce hunger by half High hunger
Millennium Development Goals 2013 :
This chart presents an assessment of
progress towards selected targets on the
basis of information available as
of June 2013.

5. 0
1
2
3
4
rural
urban
Category Share of unorganized sector
Agriculture and forestry 99.9
Fishing 98.7
Mining 64.4
Manufacturing 87.7
Electricity, Gas, water supply 12.4
Construction 92.4
Whole sale , retail trade 98.3
Hotel and Restaurants 96.7
Transport storage and Communication 82.2
-NSSO Survey 2010
Shows the comparison
Between formal and
informal sector
Share of Labor Input in
unorganized Sector (%).
Census 2004-05

6. The percentage of
Informal/unorganised sector in India
As per the Bop skill Development

7. Despite the efforts of the Government, the position of the
people engaged in this sector is far from satisfactory.
Hence…
POSSIBLE SOLUTIONS TO THE PROBLEM
Bringing the sector under the albeit of partial control of Equal wages Act(Also include
the unskilled labourers).
Bringing legislation in the parliament making it mandatory for unorganised sector to
start with social security contributions(Inclusion of ADHAAR CARD).
SHG should be including the poorest of the poor. In this connection the real
beneficiaries should be identified without any bias and benefits should reach them.
Provident fund scheme which has already started in the private sector to be extended
to the lower rung of the society.
Protecting selected occupations from global competition.

8. Strengthen the SHGs:
 Centralizing SHGs and providing financial security so that they can operate on a
national scale(cover all the rural areas).
 Hold elections to elect representatives for the above centralized org.
 Monitor state level groups, provide them funds so that they can in turn
monitor SHGs at regional level.
Linking ADHAAR CARD with the unorganized sector:
 Labour department should register number of laborers under a particular
contactor.
 10% of the pay of each worker will be deducted and will be deposited in the
bank in their name.
 The accounts should be registered within 5 years lock-in period(in case of
emergency money can be withdrawn).
 ADHAAR CARD can be used for social security which will be beneficial for
workers of any sector.

9. Incorporating informal sector data into the
national accounts
• This component raises awareness among the national
statistics offices about the importance of collecting and
disseminating informal sector and employment data
,incorporating it into employment and GDP estimates.
Generate large scale employment
• Set up large scale electronic goods manufacturing industries
which assemble electronic devices like mobile phones ,
laptops and other components. This will generate large
employment converting huge section of unorganized sector
workers into organized sector .
Restricting import of certain goods
• Put a cap on import of goods like certain vegetables/fruits ,
various varieties of cloth which are also produced in India so
that Indian producers can benefit from availability of market.

10. Formation of Unorganized Sector Worker Organization
VILLAGE
MUNICIPALITY
TEHSILADAR
BLOCK DEVELOPMENT
OFFICER
SUB DIVISIONAL
OFFICER
STATE
CENTER
What will it do?
Conduct teaching programs
Organize gatherings of unorganized workers
from all sectors .
 Awareness about work management
The given diagram represents the different stages
Required to form the organisation.
Ex: the unorganised sector workers can make their
Own cooperative society and help the
underdeveloped workers to enhance their work.
(Lijjat papad association in Gujrat)

11. CONCLUSIONS..
According to the statistics we find that informal sector are in
majority , if these sectors are enhanced then there will be a huge
improvement in the Indian economy .
The definition of the informal sector is more about the ethics of
the worker.
Working attitude and work environment among the workers is
an important aspect for the progress of the informal sector.
The living conditions of the informal sector worker improves,
which inturn will im
also women have been contributing a major part in this sector
so

12. Appendix
 http://mospi.nic.in/mospi_new/upload/nsc_report
 Wikipedia
 http://www.iariw.org/papers/2009/5a%20naik.pdf
 http://www.halfmantr.com/display-national-issues/1046-informal-sector-in-
india
 http://www.oecd.org/finance/private-pensions/42052126.pdf
 http://usf.vc/updates/bridging-the-rural-urban-divide-3/