Informal Sector In Globalisation
Research Paper
Topic- Informal Sector in India: Characteristics, Challenges and Impact of Globalisation
Introduction:
The term 'informal sector ' refers to the economic strata wherein workers and economic units that are; in law or in practice; not covered or insufficiently covered by formal arrangements; although they are operating within the formal reach of the law, the law is not applied or not enforced; or the law discourages compliance because it is inappropriate, burdensome, or imposes excessive costs. Women, migrants and other vulnerable groups of workers who are excluded from other employment opportunities have little choice but to take informal low-quality jobs.
Informal sector is Characterised by :-
• Absence of laws or their enforcement
• No legal requirement to pay taxes
• Employment to the unskilled and semi-skilled labourers
• Unhealthy and non-conducive work atmosphere
• Excess of self employment
• Absence of social benefits such as pensions, sick pay and health insurance
Challenges facing the Informal sector:-
• Poor employment conditions arising out of increasing poverty
• Lack of protection in the event of non-payment of wages
• Compulsory overtime or extra shifts
• Lay-offs without notice or compensation
• Lack of unionization amongst the labour force
• Gender and caste based discrimination
• Violation of laws
Garment Industry in India
India’s readymade garment industry contributes around 16% of the total export earnings and is the largest foreign
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