Excellent article! A large informal sector is a sign of underdevelopment.At present in India only around 10 % of workers are employed in the formal sector. Informal setor workers are employed in agriculture as well as non farm sectors. Their contribution to GDP is decreasing over the years.A structural transformation is required in India to shift the workers from informal to formal sector.
Demonetisation, GST, digital payments and enrollment of informal sector workers in government portals like e-Shrams have helped in formalisation of the economy and increasing the tax base. Formalisation leads to more tax revenue to the government and provides social security benefits to workers, enforcement of minimum wages, implementation of labour laws and proper documentation. Hence , if India has to become a super power, it cannot neglect these workers,!!
Thank you for your thoughts. Glad you flagged e-shrams--some 3 crore people have registered on it. Reflects the urge and aspirations to be part of the formal system.
I recall a household help who once told me that he wanted to join an organisation to do the same tasks. When I asked him what would be the difference, he surprised me. I thought it would be the lure of tenure. Instead, it was about getting social security benefits like PF etc. And, this conversation is a decade old.
As always an excellent Article ! However there is still an archaic mindset in the bureaucracy at least towards the corporate tax payers. The latter is trying its best to scuffle the faceless assessments as an example.There are some pending Appellate cases going back a decade ! If further simplification is brought in, together with a changed mindset - the positive impact of that is anybody's guess !
Couldn't agree with you more about the long overdue mindset. Tragedy that our babus don't realise that the ship on status quo has sailed. India is changing by the day. The government has recognized India Inc as a legit and key stakeholder in the Indian economy. Time to walk the talk.
Hello Anil: Excellent reporting and analysis, as always. This is a very crucial component of the overall revolution occurring, as India becomes a more literate, more economically advanced nation. Thank you for continuing to chronicle this unfolding story.
You have highlighted one of the main lubricant for the current double engine economy ! In terms of numbers both transactions and valuation figures are mind boggling !
However process needs to be accelerated to enhance demographic coverage which will help reduce economic inequalities as well .
Dear Anil,
Excellent article! A large informal sector is a sign of underdevelopment.At present in India only around 10 % of workers are employed in the formal sector. Informal setor workers are employed in agriculture as well as non farm sectors. Their contribution to GDP is decreasing over the years.A structural transformation is required in India to shift the workers from informal to formal sector.
Demonetisation, GST, digital payments and enrollment of informal sector workers in government portals like e-Shrams have helped in formalisation of the economy and increasing the tax base. Formalisation leads to more tax revenue to the government and provides social security benefits to workers, enforcement of minimum wages, implementation of labour laws and proper documentation. Hence , if India has to become a super power, it cannot neglect these workers,!!
Dear Vandana,
Thank you for your thoughts. Glad you flagged e-shrams--some 3 crore people have registered on it. Reflects the urge and aspirations to be part of the formal system.
I recall a household help who once told me that he wanted to join an organisation to do the same tasks. When I asked him what would be the difference, he surprised me. I thought it would be the lure of tenure. Instead, it was about getting social security benefits like PF etc. And, this conversation is a decade old.
Look forward to your continued participation.
Best
Anil
As always an excellent Article ! However there is still an archaic mindset in the bureaucracy at least towards the corporate tax payers. The latter is trying its best to scuffle the faceless assessments as an example.There are some pending Appellate cases going back a decade ! If further simplification is brought in, together with a changed mindset - the positive impact of that is anybody's guess !
Dear Atul,
Thank you for your kind thoughts. Appreciate it.
Couldn't agree with you more about the long overdue mindset. Tragedy that our babus don't realise that the ship on status quo has sailed. India is changing by the day. The government has recognized India Inc as a legit and key stakeholder in the Indian economy. Time to walk the talk.
Best
Anil
Hello Anil: Excellent reporting and analysis, as always. This is a very crucial component of the overall revolution occurring, as India becomes a more literate, more economically advanced nation. Thank you for continuing to chronicle this unfolding story.
Dear Shiv,
Thank you so much for your kind words. Much appreciated.
Best
Anil
Anil
You have highlighted one of the main lubricant for the current double engine economy ! In terms of numbers both transactions and valuation figures are mind boggling !
However process needs to be accelerated to enhance demographic coverage which will help reduce economic inequalities as well .
Regards
Dear Balesh,
Thank you for your thoughts and appreciation. Agree with you. The good start has to be carried forward even more aggressively. Long road ahead.
Just came across an interesting post on Twitter. It argues, using IT data, to argue that there is an upward bias in income mobility.
Sharing the link: https://twitter.com/abhymurarka/status/1688066483606151169?s=20
Best
Anil