Challenges of Indian Informal Sector

Challenges of Indian Informal Sector | Sociology Optional Coaching | Vikash Ranjan Classes | Triumph IAS | UPSC Sociology Optional

When considering the array of 51 optional subjects for the UPSC Mains Examination, Sociology consistently stands out as a top choice. Its inherent appeal lies in its accessibility and intriguing exploration of humanity and society, catering even to students from Science and Commerce backgrounds. With a well-defined UPSC sociology syllabus comprising only 13 units, Sociology can be comprehensively covered within 5 to 6 Month Comprehensive “Foundation to Finale” Classroom Programme, Many of Our Sociology Foundation Course Students have Cleared CSE 2023- Kajal Singh, First Attempt (Age 22) Mahi Sharma, First Mains (Age 23), Anand Sharma First Mains and Many Others. Previously also Many students like IAS Pradeep Singh, IAS Ashish, IPS Bindu Madhav, IPS Aparna Gautam, IPS Shahnaz Illyas got Success in CSE in First Attempt with Sociology Optional.

IAS Medha Anand, has get 310 marks in her optional subject sociology, 156 in paper – 1 &  154 marks in Paper -2 in CSE 2023. Notably, Sociology for UPSC has garnered a reputation as one of the Highest scoring optional subjects in the UPSC Main Examination, with numerous candidates consistently achieving 300+. Its popularity is evident in the fact that a significant proportion of top 100 rankers opt for Sociology as their optional subject, showcasing its high scoring potential, particularly for those not from sociology backgrounds. Moreover, relevance of Sociology Optional Syllabus for UPSC extends beyond the examination hall, enriching understanding across various aspects of life, from social and economic to political and cultural domains. In recent times, Sociology Optional has gained traction, aligning with the evolving trend of the UPSC Mains towards conceptual analysis. Unlike other optional subjects with unpredictable question patterns, Sociology offers stability and predictability, making it an attractive choice. This adaptability, coupled with its concise syllabus and relevance to both academic and social spheres, positions Sociology as the ideal optional subject for engineers as well as optional subject for commerce graduates and optional subject for  science graduates seeking success in the Civil Services Examination. For those pursuing Sociology as an optional subject, accessing comprehensive Sociology optional notes and few good Sociology optional books, and previous years’ UPSC sociology optional question papers is pivotal for thorough preparation. Additionally, for aspirants seeking guidance, renowned  educator Vikash Ranjan Sir at TRIUMPH IAS coaching institutes in Delhi, offer valuable support and resources. Vikash Ranjan Sir is the Best Sociology Teacher and Triumph IAS is the
best sociology coaching in Delhi. If you are away from Old Rajendra Nagar, Delhi, you can still complete Journey of UPSC civil service preparation through online Sociology class The  scientific nature of Sociology, coupled with its direct applicability to daily social interactions, renders it a subject that can be comprehended without extensive reference materials, distinguishing it from other optional subjects requiring extensive reading and research.

Challenges of Indian Informal Sector

Relevant for Civil Services Examination

GS Paper-3

Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Challenges of Indian Informal Sector

As defined by the ILO, the informal sector consists of various economic units primarily owned and operated by individuals, often employing one or more workers on an ongoing basis. It includes farmers, agricultural labourers, owners and workers of small enterprises, and self-employed individuals without hired employees.

India’s labor market is dominated by a large informal sector, comprising over 400 million workers who operate outside the formal employment framework. Despite contributing more than half of the nation’s GDP, the presence of low-income and semi-skilled workers underscores the critical need for structural reforms aimed at formalization and providing equitable opportunities.

Status of informal labour

Over 60% of the global workforce and 80% of enterprises worldwide operate in the informal economy, with more than 2 billion workers relying on informal employment. Informal employment accounts for:

  • 90% of total employment in low-income countries.
  • 67% in middle-income countries.
  • 18% in high-income countries.

Between 2010 and 2016, informal work contributed about 40% of GDP across Sub- Saharan Africa, Europe, Central Asia, Latin America, and the Caribbean. In India, the informal labor market makes up nearly 85% of the workforce, with over 90% of these workers being self-employed or casual laborers. The informal sector also generates more than half of India’s GDP.

According to the e-Shram portal, over 94% of India’s 27.69 crore informal workers eam Rs 10,000 or less per month, with 74% of this workforce belonging to Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC), while 25.56% belong to the General Category. Only 4.36% of workers eam between Rs 10,001 and Rs 15,000 monthly.

Issues regarding condition of workers in the informal sector

Inadequate Safety and Health Standards: Many industries, particularly mining, suffer from poor safety and health measures. Environmental hazards are especially prominent in the informal sector, exacerbating the risks faced by workers.

Irregularities in Minimum Wages: Numerous studies on employment conditions in the unorganised sector reveal that wages are frequently below the minimum wage rates, leaving workers inadequately compensated for their labor.

Long Working Hours: In India’s unorganised sector, excessive working hours, often exceeding labor and regulatory standards, are common. This has a detrimental effect on workers’ social and family lives, with women laborers being particularly affected.

Poverty and Indebtedness: Workers in the unorganised sector experience significantly higher rates of poverty compared to those in the organised sector. Low income levels and unstable employment make it difficult for them to meet basic needs, fulfill social obligations, or avoid falling into debt.

Lack of Social Security: Workers are vulnerable during times when they cannot work, whether due to illness, old age, accidents, or unemployment. The absence of social security measures leaves them without risk coverage or support to maintain a basic standard of living during such crises.

Poor Physical Environment: The lack of sanitation facilities in unorganised industries poses serious health risks. Inadequate toilet and washing facilities contribute to unhygienic conditions, further impacting the well-being of workers.

Seasonal Unemployment and Low Wages: Agricultural laborers and street vendors frequently experience seasonal unemployment and low wages due to a lack of regulation and bargaining power. This contributes to growing income inequality and poverty within these sectors.

Challenges in Sustainable Livelihoods: Achieving sustainable livelihoods and ensuring equitable opportunities for workers in the informal sector remains a significant challenge, especially due to inadequate policy measures.

Impact of Large Families and Low Incomes: Large family sizes add pressure on agricultural laborers, while street vendors and home-based workers remain trapped in cycles of poverty due to their low incomes. This perpetuates their low social status and limits access to essential rights, such as social security and healthcare.

Health Risks and Child Labor: Waste pickers and recyclers face numerous health hazards due to unsafe working conditions and lack of proper safety protocols. Child labor is also a prevalent issue within this sector, exacerbating the exploitation of vulnerable populations.

The informal economy at Marina Beach: A case study

  • Marina Beach, one of Chennai’s most famous landmarks, spans 12 kilometers from Fort St. George to Besant Nagar and serves as a vibrant center of economic activity. An estimated 3,000 street vendors operate along this stretch, offering a wide range of goods, from food and snacks to toys, as well as various forms of entertainment. With 15,000 to 20,000 visitors daily, the beach provides a vital source of income for these vendors.
  • A recent study by the Populus Empowerment Network – India (PEN – India), a socio-political research organization in Chennai, surveyed 308 stationary street vendors at Marina Beach to examine their socio-economic backgrounds, the challenges they face, and potential solutions for improving their livelihoods. The survey offered valuable insights into the vendors’ lives and highlighted the many challenges they endure.
  • The study found that 61% of the vendors were male, though many businesses were family-run, with women and children actively involved. Age-wise, 43% of vendors were between 31 and 45 years old, while 25% fell in the 19 to 30 age range. This relatively young to middle-aged workforce indicates that street vending at Marina Beach demands physical endurance and resilience, given the strenuous nature of the work.
  • One of the most notable findings from the survey is the high cost of capital faced by these vendors. Almost half of the respondents (50%) reported an initial investment exceeding Rs 25,000 to start their business. However, only 7% were able to obtain formal bank loans. Instead, 45% of the vendors had to depend on private loans, which often carried extremely high interest rates—sometimes exceeding 10% for a repayment period of just 100 days.

What can be done?

  • Universal Coverage: Utilize the eShram portal and partner with industry associations to progressively enroll the entire informal workforce of over 400 million into social security programs.
  • Streamlining Registration: Simplifying the registration procedures for informal businesses can facilitate their inclusion, along with their workers, into the formal economy. Self-help groups (SHGs) can be instrumental in fostering self-reliance and enhancing the working conditions for informal workers.
  • Labour Code Implementation: Expedite the enforcement of the four consolidated labour codes (Wages, Industrial Relations, Social Security, and Occupational Safety) to effectively tackle existing challenges.

The End of the Blog: Challenges of Indian Informal Sector

After Class Doubts Session of Students
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Frequently Asked Questions by
UPSC Sociology Optional Students

How to prepare for the Sociology Optional without coaching?

Understand the syllabus thoroughly: Familiarize yourself with the entire syllabus for both Paper I and Paper II. Download the official UPSC syllabus and use it as your roadmap. You can attend Sociology Orientation Lectures by Vikash Ranjan sir  on YouTube

Build a strong foundation: Start with introductory textbooks and NCERT books to grasp core sociological concepts. You can start with Introduction to Sociology books

Choose reliable study materials: Select high-quality textbooks, reference books, and online resources recommended by experts. You can opt for Vikash Ranjan Sir Notes too.

Develop a study schedule: Create a realistic and consistent study schedule that allocates dedicated time for each topic. Stick to it and track your progress.

Take notes effectively: Don’t just passively read. Summarize key points, create mind maps, or use other note-taking techniques to aid understanding and revision.

Practice answer writing: Regularly write answers to past year question papers and model questions. Focus on clarity, structure, and critical thinking. Evaluate your answers for improvement.

Seek guidance: You can take free Mentorship on Sociology Optional preparation by Vikash Ranjan sir. Connect with Vikash Ranjan sir (7303615329) to share strategies, ask questions, and stay motivated.  

Can I prepare for Sociology Optional without coaching?

Absolutely! Many aspirants successfully clear the exam through self-study. However coaching can provide structure and guidance, for time bound preparation.

What are the benefits of preparing without coaching?

Cost-effective: Coaching can be expensive, and self-study allows you to manage your resources efficiently.

Flexibility: You can tailor your study plan to your individual needs and pace.

Independence: You develop critical thinking and research skills, valuable assets for your career.

What are the challenges of preparing without coaching?

Discipline and motivation: You need self-discipline to stay on track and motivated without external guidance. Coaching and Teacher keeps you motivated.

Access to resources: You may need to do extra research to find quality study materials and answer-writing practice opportunities. Teacher help you on this respect.

Doubt clearing: You might lack immediate access to someone to address your doubts and questions. Teacher like Vikash Ranjan sir is accessible to his students 24×7   Mo- 7303615329

What additional resources can help me?

Vikash Ranjan Sir’s YouTube channel and website: Offers free Sociology lectures, study materials, and guidance.

Triumph IAS website: Provides past year question papers, model answers, and other helpful resources.

Public libraries and online databases: Utilize these resources for access to relevant books, journals, and academic articles. 


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