Economics (NCERT) Notes

7.4 Formal and Informal Sector

Benefits of the Employees in Formal Sectors


• Better job security


• Social security benefits


• Better salaries


 


Issues with Informal Sectors


• Workers and enterprises in the informal sector do not get regular income.


• They do not have any protection or regulation from the government.


• Workers are dismissed without any compensation.


• Technology used in the informal sector enterprises is outdated


• They also do not maintain any accounts.


• Workers of this sector often live in slums and are squatters (unlawful tenants).


 


Government Initiatives


• Indian government has initiated the modernisation of informal sector enterprises.


• International Labour Organisation (ILO) is playing important role in modernization.


• Government is taking many steps for the provision of social security measures to informal sector workers.


Continue reading for Free



Related Articles
 
• 3.2 Inequality in Poverty
• 2.3 The Problem of Unemployment
• 2.2 Quality of Population
• 2.1 People as Resource
• 1.2 Increasing Agricultural Productivity
• 5.4 Case Studies of Consumer Rights
• 5.3 Consumer Protection Act
• 5.1 Consumer Rights
• 4.4 Impact of Globalization in India
• 4.2 Foreign Trade and Integration of Markets
Recent Articles
 
• Q12. Ethical issues involved in the use of social media.
• Q4 (b) Differentiate ‘moral intuition” from ‘moral reasoning’.
• Q2 (b) Difference between ‘coercion' and 'undue influence’ in work environment
• Q9. A journalist fighting the stone mafia
• Innovation and Creativity
• Love and hatred
• Religion and Spirituality
• Tulsidas
• Bureaucrat at the Temple
• Getting Fooled for Kindness