THE IMPACT OF UNORGANIZED SECTOR IN INDIAN ECONOMY

The unorganized  sector  may be identified  as small scale enterprises or units which  are not registered with  any  government agency or not governed  by Various acts of the Government . The basic features of this sector are easy entry, small scale of operation, local ownership, illegal status, laborintensive, flexible pricing, non standard production and packaging, lack of branding, unavailability of an effective distribution network etc. Employees of enterprises belonging to the unorganized sector have no job security and chances of growth, they have no entitlement of leave or paid holidays, they have no legal protection against any misconduct done by employer. While the unorganized sector workers and entrepreneurs are play a leading role for the growth of Indian economy. 
 
KEYWORDS:  Unorganized Sector, Unincorporated, Branding, Distribution Network.

Introduction The unorganised  sector  which  comprises of small scale enterprises or units and are not registered with any government agency or not governed  by Various acts like Factories Act, Bonus Act, PF Act, Minimum Wages Act . The sector which is registered by any Government agency the employment terms are fixed and employees have assured work is called organized sector. The term unorganized sector defined by National Commission for Enterprises in the Unorganized Sector in their Report on Conditions of Work and Promotion of Livelihoods in the Unorganized Sector as "... consisting of all unincorporated private enterprises owned by individuals or households engaged in the sale or production of goods and services operated on a proprietary or partnership basis and with less than ten total workers." The basic features of this sector are easy entry, small scale of operation, local ownership, illegal status, labor-intensive, flexible pricing, non standard production and  packaging,   lack of branding , unavailability of  an effective distribution network etc . Employees of enterprises belonging to the unorganized sector have no job security and chances of growth, they have no entitlement of leave or paid holidays, they have no legal protection against any misconduct done by employer.  The workers working in unorganized sector are playing a leading role for the growth of Indian Economy.  A CENSUS report estimates that in 2005 out of the 458 million persons employed in India, 86 % worked in the unorganized sector, generating 50.6 percent of the country's Gross Domestic Product.  

Actually unorganized workers are home-based workers or a self-employed workers or a wage workers.  It includes a worker in the unorganized sector who is not covered by any of the Acts pertaining to welfare Schemes as mentioned in Schedule-II of Unorganized Workers Social Security Act, 2008.Jul 30, 2015. The unorganized sector or   informal sector is the part of an economy that is neither taxed nor monitored by any form of Government. Activities of the unorganized or informal sector are not included in a country's gross national product (GNP) or gross domestic product (GDP). Only the activities of organized sector are included in a country’s Gross National Product (G.N.P.) or Gross Domestic Product. under the term of occupation, unorganized workers may categorized as  Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labelling and packing, building and construction workers, leather workers, weavers, artisans, salt 


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