Understanding the ''Informal Sector'' A Survey

Objective of this study is to analyse variables affecting development of market for services in informal or unorganized sector. The extant literature studies informal sector from view point of manufacturing enterprises, emergence of informality and urbanization with migration of labour from primary activities and challenges of dualism of urban and rural as well as formal and informal employment resulting in income disparities. The services sector which is now a bigger contributor to economic growth in India as also in developed economies mainly discusses tradable services in formal enterprises and its linkages with informal sector. There is a large space remaining uncovered of personal and household services and human development services where infrastructure support and intervention from public and private institutions could upgrade services offered and provide marketability to the sector. The changes taking place in Indian economic policy and technology environment presently in the direction of formalization needs to be examined. Services in informal sector have an important bearing on human capital and social capital development.

Keywords: Formal and informal sector linkages, Non-tradable services, Social capital, Human development.

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Ganpat Prajapati

Papers

Market development of informal services sector with formal sector linkages in India