Importance Of Informal Economy

Introduction

The process rapid global urbanisation is making cities as spaces where increasingly diverse populations come together with differences in race, class, ethnicity, nationality and gender. Inclusive pluralism is an essential aspect of sustainable urban development in a developing country like India. The term “Informal Sector” was coined by Hart in 1972, where he finds that people who fall under this category are unskilled migrants who have a minimal earning not suffusing to meet their basic needs many a time. In general, the Informal economy is also considered to be a sector that falls outside the purview of legal framework and regulation. When looking at country’s of global south almost 82% of the non- agriculture based occupation

Also the results of globalisation and liberalisation has resulted in mass production, new jobs etc, on the other hand it demands skilled labour which has automatically pushed the unskilled labour out of market leading to mismatch with the population growth and employment opportunities. In the process of mass production, contracting and sub-contracting has led to employment for daily/ regular wages informal jobs which make the Informal sector an integral part of the economy. At the same time small scale entrepreneurs have become less accessible to the large mass production opportunities. Informal economy is associated with two major aspects, one is the growth of the economy and the other is related to poverty and inequality. Most people prefer to get into the sector because it become an avenue for their survival. For example, street vending as an occupation was in existence for more than hundreds of years which was considered to be historical and cultural heritage in many cities. Street vending is an integral element of the urban economies, vital part of the social structure and are people bringing in life to the streets around the world. They are distributors and service providers of affordable goods and services to consumers within convenient and

They sell everything from fresh vegetables to prepared foods, from building materials to garments and crafts, from consumer electronics to auto repairs to haircuts. The Informal Economy Monitoring Study (IEMS) revealed ways in which street vendors across cities strengthen their communities: Most street vendors provide the main source of income for their households, bringing food to their families and paying school fees for their children.These informal workers have strong linkages to the formal economy. Over half the IEMS sample said they source the goods they sell from formal enterprises. Many customers work in formal jobs.Many vendors try to keep the streets clean and safe for their customers and provide them with friendly personal service.Street vendors create jobs, not only for themselves but for porters, security guards, transport operators, storage providers, and others.Many generate revenue for cities through payments for licenses and permits, fees and fines, and certain kinds of