Informal Economy in India: Persistence and Meagreness

Abstract

This article offers an estimate of the informal sector in non-agricultural activities in the rural and urban areas. It brings out the supply-push segment within the informal sector. The findings of micro-surveys are utilized to construct the well-being index of the households, the members of which are largely engaged in the informal sector. Findings from the qualitative survey are also cited to understand how contractualization and ancillarization have impacted on the work practices and performance of the informal sector. Finally, the article looks into policy issues.