Define the informal sector as used in the context of Indian employment and state its approximate share in total employment according to the latest NSSO data (2017-18).
Answer
The informal sector comprises units that are not registered, do not comply with labour laws, and have no social security benefits; it employs about 91% of the total workforce.
Step-by-step solution
- Identify the characteristics of the informal sector: lack of registration, no compliance with labour regulations, and absence of social security.
- Recall the NSSO (2017-18) report which states that around 91% of total employment is in the informal sector.
- Combine the definition and the statistic to form the final answer.
Common mistake: Confusing informal sector with only the unorganized manufacturing sector, ignoring services and agriculture.
Concept tested: Definition and share of informal sector
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