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Widening Exclusion: Informalisation in the Indian Economy

Widening Exclusion: Informalisation in the Indian Economy. Ravi Srivastava. Emp. In Organised Manufacturing (ASI). Organised Sector Employment (DGET). % of Emoluments & Wages to GVA in Org. Man. Share of Unorganised Sector in Employment and Value Added: All India (DGET, CSO).

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Widening Exclusion: Informalisation in the Indian Economy

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  1. Widening Exclusion: Informalisation in the Indian Economy Ravi Srivastava

  2. Emp. In Organised Manufacturing (ASI)

  3. Organised Sector Employment (DGET)

  4. % of Emoluments & Wages to GVA in Org. Man.

  5. Share of Unorganised Sector in Employment and Value Added: All India (DGET, CSO)

  6. NCEUS definition Unorganised Sector “The unorganized sector 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” Unorganised Worker “Un-organized workers consist of those working in the un-organized sector or households, excluding regular workers with social security benefits provided by the employers and the workers in the formal sector without any employment and social security benefits provided by the employers”

  7. Total workforce in agriculture and non-agriculture sector by activity status in 1993-94, 1999-2000 and 2004-05 (million)

  8. Growth rate of workforce in agriculture and non-agriculture by activity status between 50th, 55th and 61st NSSO Round

  9. Employment in the Organised & Unorganised Sector, 1999-00 & 2004-05

  10. Employment Growth Rates by Economic Activity and Sector Source: NSSO 55th & 61st Round Survey

  11. Employment Growth Rate between 2000 and 2005 as per DGET Source: DGET

  12. Employment Growth Rate between 1999-2000 and 2004-05 as per ASI Source: ASI summary results for factory sector 1999-2000 & 2004-05

  13. Employment Elasticity between 1999-2000 and 2004-05 Source: Employment data taken from NSSO 55th & 61st Round and GVA estimated by NCEUS using Modified Method of apportioning

  14. Estimated number of workers by sector and type of worker in 1999-2000 and 2004-05 (million)

  15. Estimated number of non-agriculture workers by sector and type of worker in 1999-2000 & 2004-05 (m.)

  16. Percentage distribution of non-agriculture workers by sector and type of workers to total non-agriculture workers

  17. Comparison of Organised Sector Employment (lakhs)

  18. Growth rate of workers by sector and type of worker between 1999-2000 and 2004-05 (%)

  19. Employment growth rate between 1999-2000 and 2004-05 by major industry group and sector Source: NSSO 55th & 61st Round Survey

  20. Employment Growth Rate of Informal and Formal Workers by Economic Activity, 1999-00/2004-05 Source: NSSO 55th & 61st Round Survey

  21. Growth rate of organised sector informal-formal workers by sex and industry group between 1999-2000 & 2004-05 Source: NSSO 55th & 61st Round

  22. Growth rate of organised sector informal-formal workers by area and industry group between 1999-2000 & 2004-05 Source: NSSO 55th & 61st Round

  23. Incremental employment between 1999-2000 & 2004-05 (lakh) Source: NSSO 55th & 61st Round

  24. Percentage distribution of incremental employment between 1999-2000 & 2004-05 (lakh)

  25. Increase & growth rate of employment in the OS, by activity type

  26. Growth of Regular Wage Employee by type of work and sector between 1999-2000 & 2004-05 Source: NSSO 55th & 61st Round

  27. Average Daily Earning of Workers in the Age Group 15 to 59 Years (1993-94 Prices)

  28. Growth rate of Average Daily Earning of Workers in the Age Group 15 to 59 Years (1993-94 Prices)

  29. Wages of Regular Workers (US. IW/OS, FW/OS), 2004-05

  30. Conclusion • Only one time period results available at present from the NSSO. Issues with the base year (99-00). • Variance with alternative estimates. Both size and growth of employment in Organised Sector is larger. • While under coverage may be one issue, more significant issue related to informal workforce. • Growth in informal workforce, including sizeable numbers of regular workers – low paid & without protection – but a pointer to changing functional and skill requirements. • Institutional and labour rigidities have not deterred the OS from increasing employment of flexible labour. • Along with the Unorganised Sector issues, quality of employment and lack of employment and social protection emerging as a significant issue.

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