{"id":75,"date":"2019-10-23T18:16:56","date_gmt":"2019-10-23T18:16:56","guid":{"rendered":"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/?page_id=75"},"modified":"2019-11-13T20:03:44","modified_gmt":"2019-11-13T20:03:44","slug":"india-informal-sector","status":"publish","type":"page","link":"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/india-informal-sector\/","title":{"rendered":"India (Informal sector)"},"content":{"rendered":"\n<ol class=\"wp-block-list\"><li><strong>Introduction\nand overview of the country<\/strong><\/li><\/ol>\n\n\n\n<p>In this paper, I am going to provide and\nanalyse the informal sector in India. Before hand, it is important to properly\nhave an overview knowledge on India\u2019s history, geography, demography and economy.\n&nbsp;<\/p>\n\n\n\n<p><strong>History: <\/strong>The National portal of India states that <strong>\u201c<\/strong>India is one of the oldest civilizations\nin the world with a kaleidoscopic variety and rich cultural heritage\u201d (NIC,\n2019). India is one of the countries with huge varieties of religion, tribes\nand languages. India is a former colony of the United Kingdom until they got \u201ctheir\nindependence from the British the 15<sup>th<\/sup> August 1947\u201d (NIC, 2019). <\/p>\n\n\n\n<p><strong>Geography:<\/strong>&nbsp; India is located\nin the southern Asia and it is one of the largest countries in the world. For\ninstance, the National portal of India states that, \u201cIndia is built on 3.3\nmillion square kilometres with Afghanistan and\nPakistan to the north-west; China, Bhutan and Nepal to the north; Myanmar to\nthe east; and Bangladesh to the east of West Bengal. Sri Lanka is separated\nfrom India by a narrow channel of sea, formed by Palk Strait and the Gulf of\nMannar. In addition, India occupies a major portion of the south Asian subcontinent\nand India is the\n7th largest country in the world\u201d (NIC, 2019). &nbsp;India is well located around countries that\nare among key players in today\u2019s economy, which is considered as a plus for\nIndia in term of possibility of growth. Therefore, India is well blessed in\nterm of geography and is worth studying to fully understand India. &nbsp;<\/p>\n\n\n\n<p><strong>Demography:<\/strong>&nbsp; &nbsp;India is the second largest countries in the\nworld and it has high growth rate. &nbsp;For\ninstance, the National portal of India reports that \u201cIndia is 1,210,193,422 (623.7 million males and\n586.4 million females) with the average annual\nexponential growth rate stands at 1.64 per cent during 2001-2011. In addition,\nthe average birth and death rate is respectively 18.3 and 7.3 in 2009; the\naverage life expectancy rate is 65.8 years\n(Males); 68.1 years (Females) in the period 2006-2011\u201d (NIC, 2019).\nAccordingly, India is still growing and at this rate of growth proper attentions\nneed to be given to its populations as the right management can bring the best\nof high number of its citizens vis versa if it is poorly managed. The first\nstep to that proper management is through education. For instance, according to the provisional results of the 2011\ncensus of India, the National portal of India reports that \u201cthe literacy rate\nin the Country stands at 74.04 per cent, 82.14% for males and 65.46% for females\u201d\n(NIC, 2019). These results explain that one third (1\/3) of Indian are\nilliterate and there are rooms to make it ideal in order to reach total literacy\nlevel in India. <\/p>\n\n\n\n<p><strong>Economy: <\/strong>&nbsp;India\u2019s economyhas experienced an\neconomic reform from Neoliberalism to liberalism, which led India to face rapid\ndevelopment. For instance, Verma and Sundar reports that, \u201cthe new economic\npolicy, introduced in 1991, marked a decisive shift from heavy regulation to\nliberalisation, privatisation and globalisation (LPG)\u201d (Verma and Sundar,\n2019). Thus, this new era has taken India into another phase of growth, but it\ncomes with challenges. As of today, India is one of the semi-periphery\ncountries in the world.&nbsp; For Instance, the National portal of India reports\nthat, \u201cIndia has become self-sufficient in\nagricultural production and is now one of the top industrialised countries in\nthe world and one of the few nations to have gone into outer space to conquer\nnature for the benefit of the people\u201d (NIC, 2019).&nbsp;Therefore, India is an\nexample to follow by many developing countries that are struggling to be self-sufficient\nin agricultural production, which is very crucial in the development of any\nnations. India is now upgraded into an industrialised country and they are\nexcelling in the global level. India\u2019s strength lay on their youthful\ndemographic. Moreover, India\u2019s economy is dominated by informal sectors. <strong><\/strong><\/p>\n\n\n\n<p><strong>Recruitment\npractices&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong>First of all, The National Commission for Enterprises in the\nUnorganised Sector (NCEUS) define Informal sector as \u201cthe\ninformal sector consists of all unincorporated private enterprises owned by\nindividuals or households engaged in the sale and production of goods and\nservices operated on a proprietary or partnership basis and with less than ten\ntotal workers\u201d (Naik,2009). India is still a developing country, with high\nnumber of populations living nearly the poverty line. Relatively, one average\nhouseholds \u2018income is not enough to take care of the necessities of his\/her\nfamily. Thus, low wages push individuals or households to engage in the sale\nand production of goods and services as second means of income to fill in the\ngap. This explain why statistics show that, \u201cIndia is an emerging\neconomy with 457.46 million workers in 2004-05 and the estimated number of\ninformal sector workers in 2004-05 was 394.90 million in India contributing 86\npercent of total workers (Naik, 2009). India has formal and contractual sector\nas well; however, these positions are held by only the elites and\/or few highly\neducated individuals. Thus, the informal sector does do benefit Indians more\nthan the formal if one look close look at it.<\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; How can a\nnewly arrived international organizations legally and efficiently hire local people\nin the country with the government website being down? <\/p>\n\n\n\n<p>According to Abraham \u201cIn fact, the hiring of formal workers\nby these formal enterprises (FE) has declined over the years. Instead they have\nincreasingly hired informal workers, creating a new form of informal\nemployment, i.e. informal employment in formal enterprises (henceforth IFE).\nThis trend, i.e. the informalization of the formal sector, indicates the\ngrowing tendency of large, formal firms to hire workers under vulnerable and\ninsecure employment arrangements. Labour laws in India have also implicitly\nfacilitated the informalization of the labour force (Chakraborty, 2015)\u201d (Abraham,\n2017). If aiming for the local people in this situation, there are initiatives\ntaken by the government of India such as Make in\nIndia, Digital India, Startup India, Skill India to use technology to facilitates\nthe search and hiring for local people looking for work in their\ncategories of work especially the blue collars jobs at an affordable price to\nall. For instance, My Story reports that, <strong>\u201c<\/strong>With these initiatives,\nsmartphone revolution and launch of &#8216;Jio&#8217; lowering the internet pricing plans;\npeople belonging to BoP or Informal Sector can make use of technology such as\njob portals or job apps to connect with a&nbsp;potential employer and vice\nversa. Now job search or hiring related to the blue-collar sector can be\nsimple, smart and much cheaper than ever\u201d (Jobs,\n2018). These initiatives are very useful for both job seekers and Human\nresource managers (companies) as it facilitates the search for both parties.\nThis initiative can be the game changer for number of Indians, with no\nexception in their economic classes, seeking to work in formal sectors. The\nplatform is well organized that there are categories of blue-collar jobs listed\nbased on each individual needs and skills. For instance, My Story mentioned, \u201cfull\nfledge blue collar job portals, Blue Collar Job Portals catering to Specific Categories; Blue\ncollar service provider and Informal as well as Formal Jobs Portal\u201d (Jobs,2018). Nevertheless, the international organizations in questions\nwill have the workforce they need and the task remaining for the HR\npractitioner in this project is to select the right candidates for the position\nto fill.&nbsp; <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Selection practices<\/strong><\/li><\/ul>\n\n\n\n<p>In our\nselection practices for the right employees in our informal sectors for formal\n(IFE) positions in our international organisation, there are characteristics\nthat we look into to. For instance, correlation between gender and level of\neducations is what the HR manager in this case will base on to operate. Moving\nforward with those that qualify, there are additional screening tests that need\nto be undertaken as there are limited positions to fill. For instance, Abraham\nreports that, \u201cIn the case of IFE, men with higher secondary education,\nor graduate education were significantly more likely to be IFE, by 3 and 13\npercentage points respectively. For women too, education increased the\nprobability of IFE and these impacts were significant from middle-school\neducation onwards. Therefore, the educated labour force in urban areas was\nincreasingly likely to be informally employed in formal enterprises\u201d (Abraham,\n2017). As a result, in the urban India, regardless of the gender division,\nhigher education opens up more doors to be employed in formal companies. However, there are limit to the gratification of\nhigher education as it may end up being a curse to the holder of these degrees.\nFor instance, Abraham states that, \u201cthere is likely to be a problem of\noverqualified individuals in the labour force who are either unemployed or\ndiscontented with the nature\/quality of their jobs, a phenomenon that has\nalready become a reality in Kerala (Rasheeda &amp; Wilson, 2014)\u201d (Abraham,\n2017). As a result, Higher education is not only the way out from informal\nsectors to formal companies as there are cases that show otherwise. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Miscellaneous information<\/strong><\/li><\/ul>\n\n\n\n<p>The informal sector growth\nrate is higher in some states and some industry groups than others. Relatively,\none would assume that the informal sector is higher in the rural area\nthan the urban area; Yet, in India reports have shown that the urban area has a\nhigher rate of informal sector than in the rural area.&nbsp;&nbsp; For instance, NCEUS reports that \u201cOver the\nyear the proportion of rural informal sector workers decreased and the opposite\nhappened in urban areas. It is observed between the study period of 1999-00 to\n2004-05 that the growth rate of formal sector workers in rural areas in all\ncategories is higher than growth rate in informal sector workers but the\nreverse happened in urban area. The growth rate of urban informal sector is\nhigher than formal sector workers. The proportion of informal sector workers in\nthe agriculture sector declined over the years but in industry and services\nsector the proportion of informal sector workers increased between 1999-2000\nand 2004-05\u201d (Naik, 2018). Indeed, the urban areas in India is facing growing\nnumber of informal sectors over the rural areas because life is more expensive\nin the city with lot of competition over a formal job posted unlike in the\nrural areas. Unfortunately, the city is congested with tonnes of people\ncompeting among each other in aim of obtaining a better life. Consequently, the\nhigh cost of living in the city, push individuals to seek for a second job to\nincrease their monthly income. For instance, Shaw states that, \u201cIt is quite\nclear that earnings from most of these secondary jobs do not constitute a \u2018living\nwage.\u2019 Though they help raise total monthly income, in reality such low wages\nof informal sector service workers point to the spreading of poverty among them\u201d\n(Shaw, 1985). Eventually, working two to three jobs to make end meet will along\nthe years will affect their health and end up with nothing to show for as the\npay is barely enough to cover their family\u2019s monthly expenses.<\/p>\n\n\n\n<p>All in all, the informal sector in India is the back bone of India\u2019s economy. Nowadays, India is among one of the top industrialized countries in world. Thus, does it mean that India\u2019s success is partly due to the hard and cheap labour of informal sectors\u2019 workers? Nevertheless, the informal sector will eventually decrease along with time as there is already means of technology (websites and apps) that are available out there for everyone and anyone regardless of the states and\/or industry groups one\u2019s belong to. In addition to that, there are trends in the workforce in India, where Informal employees are offered positions in formal sectors. However, some sort of higher education is a must in order to be selectable for positions in formal sectors. Thus, the international organizations that need local staff, will be easily reachable and proceed with the hiring processes legally and efficiently without relying on the government website. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Bibliography<\/strong><\/li><\/ul>\n\n\n\n<p>Abraham, R.\n(2017). Informality in the Indian Labour Market: An Analysis of Forms and\nDeterminants.&nbsp;<em>The Indian Journal Of Labour Economics<\/em>,&nbsp;<em>60<\/em>(2),\n191-215. doi: 10.1007\/s41027-017-0096-x<\/p>\n\n\n\n<p>Bhalla Sheila\n(2007), \u201cPolicy Paper On Definitional and Statistical Issues Relating to\nUnorganised and Workers in Informal Employment\u201d, NCEUS<\/p>\n\n\n\n<p>Chakraborty, A\n(2015). Reforming Labour Markets in States. Economic and Political Weekly, 50\n(20): 52- 57. <\/p>\n\n\n\n<p>Jobs, J.\n(2019). Top 25 Job Portals to Hire Blue-Collar Employees in India. Retrieved 28\nOctober 2019, from <a href=\"https:\/\/yourstory.com\/mystory\/2525071e87-top-25-job-portals-to\">https:\/\/yourstory.com\/mystory\/2525071e87-top-25-job-portals-to<\/a><\/p>\n\n\n\n<p>Naik, A.\n(2019). Retrieved 23 October 2019, from <a href=\"http:\/\/www.iariw.org\/papers\/2009\/5a%20naik.pdf\">http:\/\/www.iariw.org\/papers\/2009\/5a%20naik.pdf<\/a><\/p>\n\n\n\n<p>Shaw, A.\n(1985). The informal sector in a Third World urban economy: A case study of\nCalcutta, India.&nbsp;<em>Bulletin Of Concerned Asian Scholars<\/em>,&nbsp;<em>17<\/em>(1),\n42-53. doi:<\/p>\n\n\n\n<p>10.1080\/14672715.1985.10414415<\/p>\n\n\n\n<p>Verma, A.,\n&amp; Sundar, S. (2019). International and Comparative Employment Relations.\nRetrieved 28 October 2019, from\nhttps:\/\/uk.sagepub.com\/en-gb\/eur\/international-and-comparative-employment-relations\/book244121<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction and overview of the country In this paper, I am going to provide and analyse the informal sector in India. Before hand, it is important to properly have an overview knowledge on India\u2019s history, geography, demography and economy. &nbsp; History: The National portal of India states that \u201cIndia is one of the oldest civilizations &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/india-informal-sector\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;India (Informal sector)&#8221;<\/span><\/a><\/p>\n","protected":false},"author":377,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-75","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/wp-json\/wp\/v2\/pages\/75","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/wp-json\/wp\/v2\/users\/377"}],"replies":[{"embeddable":true,"href":"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/wp-json\/wp\/v2\/comments?post=75"}],"version-history":[{"count":3,"href":"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/wp-json\/wp\/v2\/pages\/75\/revisions"}],"predecessor-version":[{"id":439,"href":"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/wp-json\/wp\/v2\/pages\/75\/revisions\/439"}],"wp:attachment":[{"href":"https:\/\/eportfolios.capilanou.ca\/laurieprangemartin\/wp-json\/wp\/v2\/media?parent=75"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}