{"id":32599,"date":"2025-09-04T12:54:18","date_gmt":"2025-09-04T07:24:18","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=32599"},"modified":"2025-09-04T12:59:03","modified_gmt":"2025-09-04T07:29:03","slug":"informal-sector-in-the-developing-societies","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/","title":{"rendered":"Informal Sector in the Developing Societies"},"content":{"rendered":"<h1 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Informal_Sector_in_the_Developing_Societies\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Informal Sector in the Developing Societies<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h3 style=\"text-align: center;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>(Relevant for Sociology <\/strong><strong>Paper I: Works and Economic Life)<\/strong><\/span><\/h3>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_68 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >What's Inside this Blog!<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Informal_Sector_in_the_Developing_Societies\" title=\"Informal Sector in the Developing Societies\">Informal Sector in the Developing Societies<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Introduction\" title=\"Introduction\">Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#What_Is_the_Informal_Sector\" title=\"What Is the Informal Sector?\">What Is the Informal Sector?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Historical_and_Structural_Context\" title=\"Historical and Structural Context\">Historical and Structural Context<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Characteristics_of_Informal_Sector_in_Developing_Societies\" title=\"Characteristics of Informal Sector in Developing Societies\">Characteristics of Informal Sector in Developing Societies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Sociological_Analysis\" title=\"Sociological Analysis\">Sociological Analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Why_the_Informal_Sector_Persists_in_Developing_Societies\" title=\"Why the Informal Sector Persists in Developing Societies\">Why the Informal Sector Persists in Developing Societies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Informal_Sector_and_Class_Caste_and_Gender_in_India\" title=\"Informal Sector and Class, Caste, and Gender in India\">Informal Sector and Class, Caste, and Gender in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Current_Relevance\" title=\"Current Relevance\">Current Relevance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Sociological_Issues_Linked_with_Informal_Sector\" title=\"Sociological Issues Linked with Informal Sector\">Sociological Issues Linked with Informal Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#State_Response_and_Policy_Measures\" title=\"State Response and Policy Measures\">State Response and Policy Measures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Global_Comparisons\" title=\"Global Comparisons\">Global Comparisons<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#The_Way_Forward\" title=\"The Way Forward\">The Way Forward<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#PYQs\" title=\"PYQs\">PYQs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/triumphias.com\/blog\/informal-sector-in-the-developing-societies\/#Read_more_Blogs\" title=\"Read more Blogs:\">Read more Blogs:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\">\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Introduction <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">The informal sector is the hidden backbone of most developing societies. In India, <strong>sub-Saharan Africa, or Latin America,<\/strong> millions survive by working in spaces that are outside the regulatory framework of the state\u2014<strong>street vending, domestic work, construction, small manufacturing, gig work, and agricultural labour.<\/strong> The paradox is clear: while informal workers keep economies running, they are invisible in laws, policies, and protections.<\/span><\/p>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"What_Is_the_Informal_Sector\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>What Is the Informal Sector?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">The <strong>International Labour Organization (ILO)<\/strong> defines the informal sector as work and enterprises not regulated by the state, not protected by labour laws, and often excluded from social security. In India, it covers over <strong>80\u201390% of the workforce<\/strong>, according to the <strong>Periodic Labour Force Survey (PLFS).<\/strong><\/span><\/p>\n<h3 style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>Examples:<\/strong><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Street vendors in Delhi or Lagos<\/strong><\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Domestic workers in Mumbai or Nairobi<\/strong><\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Cycle rickshaw pullers in Dhaka<\/strong><\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Gig workers driving for Ola, Uber, or Swiggy<\/strong><\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">This sector provides flexibility, survival opportunities, and low entry barriers\u2014but also precariousness, low wages, and vulnerability.<\/span><\/p>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Historical_and_Structural_Context\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Historical and Structural Context<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">In developing societies, the informal sector is not a leftover of tradition but an integral part of <strong>capitalist development<\/strong>. <strong>Keith Hart<\/strong> first coined the term <strong>\u201cinformal sector\u201d in his 1973<\/strong> study of urban Ghana. He showed that informal work is dynamic, not merely <strong>\u201cillegal\u201d or \u201ctraditional.\u201d<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Dependency theorists<\/strong> argued that the informal sector grows when formal, capitalist sectors cannot absorb surplus labour, leading to underemployment.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Marxist analysis<\/strong> (<strong>R. Desai, Indian context<\/strong>) highlights that informal labour provides cheap, flexible work that sustains capitalist profit.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Dual Economy Theories<\/strong> (Lewis model) considered informal work as a transitory stage, but in reality, it has persisted and expanded.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Characteristics_of_Informal_Sector_in_Developing_Societies\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Characteristics of Informal Sector in Developing Societies<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-32600 size-full\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection.png\" alt=\"Characteristics of Informal Sector in Developing Societies\" width=\"1008\" height=\"619\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection.png 1008w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-300x184.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-150x92.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-768x472.png 768w\" sizes=\"auto, (max-width: 1008px) 100vw, 1008px\" \/><\/p>\n<ol style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Absence of legal protection<\/strong>: No contracts, job security, or minimum wages.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Low wages and exploitation<\/strong>: Workers depend on daily earnings.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Family-based enterprises<\/strong>: Household industries, petty shops.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Gendered participation<\/strong>: Women are overrepresented in <strong>domestic work, beedi rolling, and garment piece-work.<\/strong><\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Migration link<\/strong>: Rural migrants in cities often enter informal work (<strong>construction, hawking<\/strong>).<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Survival orientation<\/strong>: It provides livelihood but rarely upward mobility.<\/span><\/li>\n<\/ol>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Sociological_Analysis\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Sociological Analysis<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-32601 size-full\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-1.png\" alt=\"Sociological Analysis\" width=\"936\" height=\"512\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-1.png 936w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-1-300x164.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-1-150x82.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-1-768x420.png 768w\" sizes=\"auto, (max-width: 936px) 100vw, 936px\" \/><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Marxist view<\/strong>: Informal workers are part of the \u201c<strong>reserve army of labour,\u201d<\/strong> keeping wages low and benefiting capitalists.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Weberian view<\/strong>: Informal sector reflects lack of rational-legal authority and bureaucratic regulation, leading to personalized patron-client relations.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Functionalist perspective (Parsons)<\/strong>: Informal sector performs adaptive functions by providing work where formal jobs are absent.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Bourdieu\u2019s concept of habitus and capital<\/strong>: Informal workers often lack cultural and social capital to transition into formal employment.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Why_the_Informal_Sector_Persists_in_Developing_Societies\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Why the Informal Sector Persists in Developing Societies<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong> Demographic Pressure: <\/strong>High population growth in countries like <strong>India or Nigeria<\/strong> pushes millions into the labour market, while the formal sector cannot absorb them.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong> Weak Industrialisation: <\/strong>Developing societies face premature deindustrialisation, where formal manufacturing fails to expand enough.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong> Cost of Formalisation: <\/strong>Many micro-enterprises avoid compliance due to complex bureaucracy, corruption, and high taxes.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong> Globalisation: <\/strong>Instead of shrinking, informal work has adapted\u2014outsourcing, contract work, gig economy. <strong>Saskia Sassen<\/strong> notes how <strong>global cities<\/strong> rely on migrant and informal labour.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong> State Policies<\/strong><\/span><\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">Weak enforcement of labour laws and inadequate welfare schemes perpetuate informality.<\/span><\/p>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Informal_Sector_and_Class_Caste_and_Gender_in_India\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Informal Sector and Class, Caste, and Gender in India<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>Class: <\/strong>Most informal workers belong to lower-income classes, with limited bargaining power. They form the <strong>\u201cworking poor\u201d\u2014<\/strong>employed but still in poverty.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>Caste: <\/strong><strong>Caste and informality intersect: Dalits and lower castes dominate<\/strong> <strong>manual and low-paid work like sanitation, construction, or leather work. Sociologist Andr\u00e9 B\u00e9teille<\/strong> emphasized caste-class overlaps in occupational hierarchies.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>Gender: <\/strong>Women are heavily concentrated in informal work. <strong>For instance<\/strong>, <strong>SEWA (Self-Employed Women\u2019s Association)<\/strong> highlights the struggles of women vendors, domestic workers, and artisans. <strong>Feminist sociologists<\/strong> argue that informalisation reinforces patriarchal dependence.<\/span><\/p>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Current_Relevance\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Current Relevance<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-32602 size-full\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-2.png\" alt=\"\" width=\"792\" height=\"576\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-2.png 792w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-2-300x218.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-2-150x109.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-2-768x559.png 768w\" sizes=\"auto, (max-width: 792px) 100vw, 792px\" \/><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>COVID-19 Pandemic<\/strong>: Migrant workers in India faced reverse migration during lockdowns, exposing the absence of social security.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Gig Economy<\/strong>: Platforms like <strong>Zomato, Ola, and Amazon Flex<\/strong> show the \u201c<strong>new informalisation.\u201d<\/strong> Workers are labelled \u201c<strong>partners\u201d<\/strong> without benefits.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Labour Codes (2020\u201321)<\/strong>: India attempted labour law simplification, but debates continue on whether they protect or weaken informal workers.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Digital Labour Platforms<\/strong>: The <strong>ILO\u2019s 2021 report<\/strong> showed that over <strong>50% of gig workers<\/strong> worldwide are in developing countries.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Sociological_Issues_Linked_with_Informal_Sector\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Sociological Issues Linked with Informal Sector<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Urbanisation<\/strong>: Slums often house informal workers. Informal economy and informal settlements are intertwined.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Education and Skills<\/strong>: Lack of access to quality education traps generations in informal jobs.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Social Mobility<\/strong>: Informal work rarely leads to upward mobility, reinforcing inequality.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Unionisation Challenges<\/strong>: Fragmented, unregulated, and dispersed workers struggle to collectivise.<\/span><\/li>\n<\/ol>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"State_Response_and_Policy_Measures\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>State Response and Policy Measures<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>National Rural Employment Guarantee Act (MGNREGA)<\/strong>: Provides rural employment but doesn\u2019t fully address urban informal workers.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Street Vendors (Protection of Livelihood) Act, 2014<\/strong>: Attempts to secure rights of hawkers, but implementation is patchy.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>E-Shram Portal<\/strong>: A database to include informal workers in social security schemes.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Skill India and PM SVANidhi Scheme<\/strong>: Aim to formalise micro-enterprises and self-employment.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">Yet, despite these, the sector remains highly precarious.<\/span><\/p>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Global_Comparisons\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Global Comparisons<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Latin America<\/strong>: Informal employment accounts for nearly half the workforce. <strong>Countries like Brazil<\/strong> experimented with conditional cash transfers (<strong>Bolsa Fam\u00edlia<\/strong>) to support informal families.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Africa<\/strong>: Informality is the dominant mode of economic life\u2014subsistence agriculture, street vending, and artisanal mining.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>South Asia<\/strong>: Common trends include informalisation of agriculture and export-oriented industries like garments (<strong>Bangladesh, India<\/strong>).<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"The_Way_Forward\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>The Way Forward<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-32603 size-full\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-3.png\" alt=\"\" width=\"756\" height=\"543\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-3.png 756w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-3-300x215.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2025\/09\/Characteristics-of-Informal-Sector-in-Developing-Societies-visual-selection-3-150x108.png 150w\" sizes=\"auto, (max-width: 756px) 100vw, 756px\" \/><\/p>\n<ol style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Simplify Formalisation<\/strong>: Reduce compliance barriers for small enterprises.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Extend Social Security<\/strong>: Health insurance, pensions, and accident benefits for informal workers.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Promote Unionisation<\/strong>: Encourage informal sector unions like<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Use Technology<\/strong><strong>: Digital IDs <\/strong>and payment systems for inclusion.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Education and Skills<\/strong>: Vocational training and literacy programs to break the cycle.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Urban Policies<\/strong>: Recognise <strong>Street vending, waste-picking, and gig work<\/strong> as legitimate.<\/span><\/li>\n<\/ol>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>Conclusion<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">The informal sector is not a temporary residue of tradition but a structural feature of developing societies. It sustains livelihoods, absorbs surplus labour, and even fuels urban consumption. But its persistence also reflects inequality, exploitation, and weak state capacity.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">From a sociological standpoint, the informal sector is both a <strong>safety net<\/strong> and a <strong>trap<\/strong>. It reflects <strong>class exploitation (Marx), absence of rational-legal order (Weber), functional adaptability (Parsons), and reproduction of inequality (Bourdieu).<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">For India and other developing societies, the challenge lies in moving from <strong>informality to decent work<\/strong>\u2014not by erasing informal work, but by recognising, regulating, and protecting it. A democracy that ignores its informal workers risks deepening inequality and unrest.<\/span><\/p>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"PYQs\"><\/span><span style=\"font-family: georgia, palatino, serif;\"><strong>PYQs<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: center;\"><span style=\"font-family: georgia, palatino, serif;\"><strong><span style=\"text-decoration: underline;\">Paper<\/span> 1: <\/strong><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>\u201cWhat do you understand by \u2018informalisation of labour\u2019? Write your answer with special reference to India.\u201d<\/strong> (2017)<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>\u201cCapitalism has brought increasing informalisation of work in society. Substantiate your answer.\u201d<\/strong> (2020)<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>\u201cWhat is \u2018informal labour\u2019? Discuss the need for and challenges in regulating informal labour in the post\u2011industrial society.\u201d<\/strong> (2019)<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>\u201cDistinguish between the social organization of work in feudal society and in capitalist society.\u201d<\/strong> (2015)<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>\u201cCapitalism has brought increasing informalisation of work in society.\u201d<\/strong> (2020)<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif;\"><strong>Critically analyze the sociological significance of informal sector in the economy of developing societies.(2025)<\/strong><\/span><\/li>\n<\/ul>\n<h3 style=\"text-align: center;\"><span style=\"font-family: georgia, palatino, serif;\"><strong><span style=\"text-decoration: underline;\">Paper<\/span> 2:<\/strong><\/span><\/h3>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>\u201cDistinguish between formal and informal sectors in India.\u201d<\/strong> (2013)<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>\u201cDiscuss the impact of globalisation on the workers in the Informal sector.\u201d<\/strong> (2014)<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>\u201cWrite short note with a sociological Perspective: Issues relating to the informal labour market in urban India.\u201d<\/strong> (2015)<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>\u201cDiscuss the changing nature of the problems of working class in the informal sector of the economy.\u201d<\/strong> (2016)<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>\u201cDo you agree that the issue of child labour raises questions about and beyond the informal sector? Give reasons.\u201d<\/strong> (2017)<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong style=\"font-size: inherit;\">\u201cHow do you view the growth of informal sector in India?\u201d<\/strong><span style=\"font-size: inherit;\"> (2022)<\/span><\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-family: georgia, palatino, serif;\"><strong><span class=\"amp-wp-303d451\" data-amp-original-style=\"font-family: 'times new roman', times, serif;\">To Read more topics<\/span><span class=\"amp-wp-303d451\" data-amp-original-style=\"font-family: 'times new roman', times, serif;\">,\u00a0<\/span><\/strong><span class=\"amp-wp-303d451\" data-amp-original-style=\"font-family: 'times new roman', times, serif;\"><strong>visit:<\/strong>\u00a0<a href=\"https:\/\/triumphias.com\/blog\/?amp=1\">www.triumphias.com\/blogs<\/a><\/span><\/span><\/p>\n<h2><span class=\"ez-toc-section\" 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frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"6jpF2ga54u\"><p><a href=\"https:\/\/triumphias.com\/blog\/platformization-of-labour\/\">Platformization of Labour<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Platformization of Labour&#8221; &#8212; TriumphIAS\" src=\"https:\/\/triumphias.com\/blog\/platformization-of-labour\/embed\/#?secret=uqyiuKCXyE#?secret=6jpF2ga54u\" data-secret=\"6jpF2ga54u\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Informal Sector in the Developing Societies (Relevant for Sociology Paper I: Works and Economic Life) Introduction The informal sector is<\/p>\n","protected":false},"author":1,"featured_media":32608,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[115],"tags":[13738,13736,1693,3184,10717,3263,3515,1859,2064,13737],"class_list":["post-32599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sociology-optional-paper-i","tag-developing-countries","tag-developing-societies","tag-economic-growth","tag-informal-economy","tag-informal-employment","tag-informal-sector","tag-labor-rights","tag-poverty","tag-social-security","tag-unorganized-labor"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/32599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=32599"}],"version-history":[{"count":3,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/32599\/revisions"}],"predecessor-version":[{"id":32609,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/32599\/revisions\/32609"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/32608"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=32599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=32599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=32599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}