INFORMAL SECTOR

INTRODUCTION

■ The term “Informal sector” has been introduced in 1972 by the International Labor
Organization (ILO) in its Kenya Mission Report.
■ An Unorganized Sector can be defined as the sector where the elements of the
Organized Sector are absent. .
■ Informal labour is who does not governed either by state regulations or by collective
agreements between workers and employers.
■ India's workforce comprises nearly 93% in the unorganized segment, with the entire
farm sector falling under the informal category, while only 1/5 of the non-farm
workers are found in the organized segment.
■ The labour in India consists of 487 million workers of which over 94% work in
unorganized enterprises.
DEFINITION: INFORMAL SECTOR

“The non-structured sector that has emerged in the urban centre as a result of the
incapacity of modern sector to absorb new entrants”
--By ILO (1972)
Category of Informal Sector

■ Occupation
Small and marginal farmers, landless agricultural labourers, fishermen, those engaged in
animal husbandry etc.
■ Nature of Employment
Attached agricultural labourers, bonded labourers, migrant workers , etc
■ Distress
Toddy tappers,, Carriers of head loads, Drivers of animal driven vehicles, etc.
■ Service
Midwives, Domestic workers, Fishermen, Barbers, Vegetable and fruit vendors, News paper
vendors etc.
MAIN FEATURES OF INFORMAL SECTOR

■ Ease of entry
■ Small scale of the activity
■ Self-employment, with a high proportion of family workers & apprentices
■ Little capital & equipment
■ Labour intensive technologies
■ Low skills
■ Low level of organization with no access to organized markets.
CONCEPT OF INFORMAL SECTOR

■ informal sector includes heterogeneous activities

■ Broadly, the informal sector activities can be characterized into
• Tiny establishment-based activities
• Street based activity
• Foot loose units
LEGAL PROTECTION AND SOCIAL
SECURITY IN UNORGANIZED
SECTOR WITH SPECIAL
REFERENCES IN INDIA”
The Merger Characteristics of the
Unorganized workers
■ There is no formal employer – employee relationship
■ In rural areas, the unorganized labour force is highly stratified on caste and
community considerations and in urban areas while such considerations are much
less.
■ Workers in the unorganized sector are usually subject to bondage as their meagre
income cannot meet with their livelihood needs, the unorganized workers are
subject to exploitation significantly by the rest of the society.
■ They receive poor working conditions especially their wages are much below than in
the formal sector, even for same jobs.
 INFORMAL ECONOMY

■ About 370 million workers constituting 92% of the total workforce in a country were
employed in the unorganized sector while formal sector of the economy employees
only 8% of the total work force as per NSS Survey 2009-2010.
■ The contribution of the unorganized sector to the net domestic product and its share
in the total NDP at current prices has been over 60%.
INFORMAL SECTOR
SITE STUDY-PURI
 Major Commercial Activities
The existing Commercial Land Use comprises of
■ Market complex/Commercial Centre
■ Street/Roadside shops/vending zones
■ Hotel/Lodge
■ Dharmasala/Rest house/Holiday resorts
■ Cinema hall/Theatre halls
■ Auto works/Garage/Service centre
■ Kalyan mandap/Community centre/Auditorium
■ Petrol pump
■ Daily/weekly hat/market
■ Informal stalls in Beach and Grand road
The other commercial activity which occupies a prominent area is by the Street/Roadside
shops/vending zones which amounts to 11.35%
 The stalls and various types‟
vendors are shown in the
pictures; these stalls are along
the sea shore, south of
the Swargadwara area..

These vendors form a major

tourist attraction along the
beach areas
Work force participation:
■ The workforce participation has been analyzed in the heads
of main workers distribution, marginal workers distribution
and total workers distribution.
Main Main
Spatial Populati Worker Populati Worker WFPR % WFPR %
unit on 1991 1991 on 2001 2001 1991 2001
Puri Town (M)125199 34043 157837 44636 27.19 28.28

Marginal Marginal
Spatial Populati Worker Populati Worker WFPR % WFPR %
unit on 1991 1991 on 2001 2001 1991 2001
Puri Town (M)125199 289 157837 2703 0.23 1.71

Total Total
Spatial Populati Worker Populati Worker WFPR % WFPR % Source:
unit on 1991 1991 on 2001 2001 1991 2001 Census
Puri Town (M)125199 34332 157837 47339 27.42 29.99 data
The main economy Sectors

Total
Year Primary Secondary Tertiary Workers WPR Source:
Population
Census
1981 629 1029 26799 100942 28457 0.281914 data
1991 706 1015 13326 125199 15047 0.120185
2001 219 1075 43342 157837 44636 0.282798
Primary sector activities
■ The State of Odisha is an agrarian state with Agriculture and Animal Husbandry Sector
contributing more than 22.46 % to the Net State Domestic Product (NSDP) in 2006-07.
■ The fishermen population of the state of Odisha is 10.84 lakh persons. Among 80% of
the state population are fish eaters.
■ The activities under cattle & live stock include:
1. Dairy activities (stall fed animals, animal grazing on private pasture, animals grazed
randomly or in nearby forest land).
2. Goat & Sheep rearing (stall fed animals, animal grazing on private pasture, animals
grazed randomly or in nearby forest land).
3. Meat processing.
4. Poultry.
■ Livestock in Odisha is high livelihood intensive and 80% of its rural households own
livestock of one species or the other and earn supplementary incomes from them. The
sector contributes 7.25 % the state‟s net domestic product
Secondary sector Activities:
■ There are several small and medium scale industries in Puri that play a phenomenal
role in shaping the town' economy. Tourism, handicrafts and cottage industries are
an important segment of the economy.
■ The coastal location of Puri facilitates the burgeoning of fishing and its allied
industries.
■ Agro based industries, forestry units, marine based industries, units manufacturing
leather and leather products as well as tourism have mushroomed in the town.
■ The handicraft and cottage industry also include silver filigree work, stone carving,
bone work, horn work, appliqué work, patta painting, and bamboo sticks, artifacts
made of sea shell, bell metal ware, coir and furniture making.
Economic activities associated with
Jagannath Temple:
The most significant are the
1. artisans, consisting of carpenters (Badhei),
2. Painters (Chitrakaras),
3. Potters (Kumbhakaras),
4. Stone –carvers (Pathurias),
5. Appliqué workers and other artisans engaged in different handicrafts like Patta,
Paintings, Palm-leaf carving, Seashell production etc.
All such artisans have linkage with the Jagannath Temple and the products have
tourist's attraction.
Craft Wise List of Handicrafts Artisans
of Puri

*Block and Craft Wise List of Handicrafts Artisans of

Puri, D.I.C, Puri
INFORMAL ACTIVITIES ALONG G.T. ROAD
MAJOR ISSUES in INFORMAL SECTOR

There are various issues found for commercial development in the study area:
■ Growing informal activities in the beach at Puri town leading to decay of urban
environment and fabric of the marine ecosystem.
■ Uncontrolled expansion of informal stalls in Grand road and surrounding areas of
Jagannath temple is resulting in decay of heritage values in the town
■ POSITIVE ASPECTS OF INFORMAL SECTOR
 Self Employment generation
 Functional shopping and convenience
 Economic need
 Supplement requirement
 Competition
■ NEGATIVE ASPECTS OF INFORMAL SECTOR
 Traffic problem
 Corruption
 Insecurity to resident
 Slum generation
Conclusion
■ Informal sector is one which helps the developing country like India having most of
the people below poverty line and these people not having capacity to establish their
business formally and also it helps increases their income which in turn their living
standards also improved.
THANK YOU!
GROUP MEMBERS:
Rohit Khandelwal -161109022
Dileep Kumar -161109017
Manoj Patidar -161109012
Rahul Bhukya -161109014
Ruchi Kumari -161109005