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Perspectives

The Restructuring of the Unorganized Sector in India

Author : Sheila Bhalla | 2016 |
Published By: Institute for Human Development (IHD)

The vast majority of Indians earn their living through work in the unorganised segment of the economy. However, they produce, on the average, only one eighth of the income generated per worker in the organised segment. By the late 1990s, the more than 90 per cent of Indian workers employed in the unorganised segment produced roughly 60 per cent of national income (NDP), while the remaining 8 to 10 per cent generated nearly 40 per cent of NDP. In agriculture and allied activities, practically all the income is generated in the unorganised segment. Further, NDP per worker in agriculture as a whole is roughly one quarter of what it is in the non-farm sectors. Thus, agriculture, despite its large size in terms of employment, accounts for less than half of all income generated by unorganised segment activities. The report provides compelling state level evidence of the strong links between agricultural performance, on the one hand, and the economic condition of workers in the unorganised non-farm sector on the other.

URL : 20141215041612.pdf

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