1. Providing Social Welfare to Informal
Sector Workers
Team Members-Utkarsh Upadhyaya,
Soham Farkande,Aditya Mukherjee Behera, Lakshman Verma,
Sheshadri Bhattacharya-
IIM-Indore
Protecting the
Vulnerable

2. It consists of all unincorporated
private enterprises owned by
individuals or households engaged in
the sale and production of goods and
services operated on a proprietary or
partnership basis and with less than
ten total workers.
In the Indian context way we can say
that this sector includes:
In the case of manufacturing
industries, the enterprises not
covered under the Annual Survey of
Industries (ASI) are taken to
constitute the un-organized(informal)
sector.
ii) In the case of service industries, all
enterprises, except those run by the
Government (Central, State and Local
Body) and in the corporate sector
were regarded as un-
organized(informal).
Informal Sector In India
0
50
100
China
Thailand
Sri Lanka
Vietnam
Philipines
Indonesia
Pakistan
India
Nepal
Contribution of Informal Sector
of India viz-a-viz Other Countries
In percentage(%)

3. According to the statistics released by
ILO, more than 80% of the able
workforce is in the informal sector, be
it push–cart vendors or farmers or
home based jewellery business.
According to the data of informal
employment vs. GDP/capita, India
belongs to the group of low
GDP/capita with high informal
employment. This clearly shows that
though we have achieved a target
GDP but the per capita ratio still
remains abysmal. This means that
most of the growth that we are
making is not going to those who
work hard to make it possible yet are
subjugated to the harsh realities of
Indian way of systems.
Scenario Of Informal Sector In India
Formal and Informal
Employment by sector
estimates
Agriculture
(Informal)
Agriculture
(formal)
Services
(informal)
Services
(formal)
Industry
(informal)
Industry
(formal)

4. The informal sector includes:
• The persons engaged in very small-scale or causal self-employment
activities may not report in statistical surveys that they are self employed.
• Certain groups of persons such as out-workers, sub-contractors,
free-lancers or other workers whose activity is at the borderline between
self-employment and wage employment.
• Persons employed in private households as domestic servants,
gardeners, etc.
As of 2005 more than 90% of the total workforce in India are employed in
informal sector. There has been a drastic increase in the informal sector as
compared to formal i.e 29.69 million to 5.93 million (differential data of
1999-00 & 2004-05) 60% of which is absorbed by agro-based industries.
Hence for our purpose we divide the informal sector into agro-based and non
agro-based industries.
Identifying the Informal Sector

5. This includes daily wage workers
and people who sell services on a
daily basis. Due to the erratic nature
of this industry, people are
generally off-duty due to which
there is a huge loss to their income.
On the line of the above mentioned
organization, another organization
shall be formed which shall provide
work to them. It will have call
centres cross different cities with
each centre having a certain no. of
workforce and based on the
requirements of the clients
employment be given to them.
Scenario And Plan For Non-Agro Based Sector
0
10
20
30
40
50
60
70
80
90
100
Rural
Urban
Figures in percentage

6. Includes farmers, agro-based product sellers, vendors,
small-time shopkeepers and push-cart vendors. Being
in informal sector they face a lot of completion in the
market for their products to be sold. With heavy
competition they have to sell at a very low price which
not only means severe loss to their income but also
loss in their morale.
Our plan thus includes a scheme that will create a
bridge between government and farmers so that they
can directly sell their produce to the authority at the
price mutually decided by the farmers and the
authority. The brokers shall work for the government
and salary be given accordingly so that we do not
hamper their income as well.
As for venders, in order to help them an organization
shall be formed which shall include all those vendors.
They shall be provided with cold storage vans in which
they can easily travel and sell their vegetables and
fruits without much loss due to environmental and
other such factors.
0
50
100
150
200
250
300
350
Male Female
Rural
Urban
Scenario And Plan For Agro Based Sector
Figures in per thousand
distribution of workers

7. In order for the plan to work, there is a
need to work hard to make them
realize the true nature of this
programme. Not only will they be
provided a stable source of income,
they will also lead a harassment free
life. There is also a need to include
necessary schemes like free health
care, accident benefits, old-age
pension, micro-loans, subsidized ration
and education for their children in
return for their services. To play their
role more effectively, local
governments need improved technical,
administrative, and financial capacity
through genuine decentralization and
increased support from national and
international development agencies.
How Will It Help Them ?

8. As this a large scale project
there will be a need for a
pretty significant amount of
workforce for the same.
Most of the recruits will be
taken from rural colleges
and allowed to work in their
native areas as they would
have a first hand account
and experience of the
scenario there.
Workforce at Local and Higher Level
Apart from that the higher committees who will oversee the working of this grass-
root workforce and ensure its stability and smooth functioning will include retired
judges, army officers and retired senior bureaucrats who can work on an honorary
basis.

9. • We shall seek help from Govt. and
NGOs.
• This needs a high amount of money for
which we shall conduct fundraisers and
with that we shall seek help from
tycoons (which will only increase their
brand value and goodwill).
• We shall utilize the surplus storage
which rots every year. According to
reports, at least 44000 crores of food
grains rot every year and thus we can
make the best use of.
• We would also like to take this point to
a higher level by requesting govt. for
donations and ask them to move a bill
for provision of a small part of taxes be
used for this purpose.
Funding

10. • Anything which is not risky is not
worth pursuing. To minimize the risk
associated with it we shall start the
initiative at a smaller level in only
few districts and then move on to
state and subsequently national level
if all goes well.
• We are very optimistic about the
project and anticipatory about its
success. Realizing the intentions and
thought behind, it is worth pursuing
because it will not only help us in
building their lives but it will also
help in fulfilling the dreams of our
founding fathers which is to create
an India in which everybody can
sleep with their bellies full under a
solid shed and a warm bed.
Challenges and Future Prospect

11. Through this presentation we have
hoped to bring forward the
condition of our Informal sector and
a plan to help in their upliftment by
staying within the framework of the
functioning of the Government. The
potential held by the informal
sector is massive and if harnessed
properly and effectively can change
its status from being a burden to
one of the biggest assets of our
country. Proper and timely
mitigation of problems not only in
the issue of social upliftment of the
informal sector, but in all problems
faced by India can put us on the
path to becoming a world
superpower.
Analysis and Conclusion

12. • Women in Informal Employment: Globalizing and
Organizing (WIEGO)
• International Social Security Association (ISSA)
• IMF Direct-International Monetary Fund’s global
economy forum
• National Sample Survey Organization (NSSO)
• World Bank Survey Information
• Google
• Wikipedia
References