"In India, over 90% of the work, whether it is in agriculture, indu...

Question

"In India, over 90% of the work, whether it is in agriculture, industry or services, is in the unorganised or informal sector."

What are the social implications of this small size of the organised sector ?

Accepted Answer

Lack of security and social benefits:
Only a small minority of workers get regular salaries, pensions, provident fund, medical leave and protection under labour laws. The vast majority have no job security and no support in old age or in illness.
Weak collective bargaining and continued inequality:
Workers in the unorganised sector cannot form effective trade unions, so they cannot bargain for better wages or conditions. Since jobs there are often obtained through personal contacts of caste and kinship, the old inequalities of caste and community continue in the world of work.