The document discusses providing social welfare protections to workers in India's large informal sector. It notes that over 90% of India's workforce is informal and not protected by social security. It proposes several recommendations to better support these vulnerable workers, including: 1) Strictly executing existing laws and programs through innovative methods; 2) Employing unemployed youth to help organize the informal sector; and 3) Conducting a proper census of informal workers to accurately account for their contribution to GDP and better target policies to support their development. The goal is to leverage existing resources to improve conditions for informal workers through appropriate program implementation.
2. Social Welfare of the Unorganized Sector: An Economical
Approach
TEAM: DENKER,
CNLU
Apurva Sharma,
Anjali,
Shreeyam Jain,
Prity,
Ajita Patnaik
3. The unorganised sector consists 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 worker. The characteristic
features of this sector are ease of entry,
smaller scale of operation, local ownership,
uncertain legal status, labour intensive,
operating using lower technology based
methods etc.
Ministry of Statistical and Programme
Implementation report, more than 90% of
India’s workforce belongs to the informal
sector and accounts for 50% of the national
product. 99.9% workers in the agriculture and
forestry sectors are unorganized. 98% of
unorganized industrial labour does not have
any social security protection
The globalisation of Indian economy and the programmes of economic
reforms have reduced the capacity of public sector enterprises to carry the
large stock of surplus sector. In a way globalization has motivated workers to
move from the organized sector to unorganized sector due to surplus of
labour in the public sector.
Organized sectors, relatively any day enjoy better benefits than the unorganized
sectors like higher wages and greater job security. The welfare and interests of
about 270-300 million workers in the unorganized sector cannot be overlooked.
Real tragedy of Indian labour market lies in the unorganized sector where workers
have little protection from unscrupulous employers.
4. Organized
Sector
Higher Pay-scale
Job Security
Better
exposure/growth
Stability
Ample funds give
way to improved
paraphernalia
Unorganized
Sector
Low Pay-Scale
No job Security
Narrow growth
Unstable
Dearth of funds
often curbs the
exposure
opportunity to
grab better
apparatus
Advantage over
existing system:
Using the existing
skills, resources and
assets better
allocation can lead
to proper
channelization and
desired results.
6. AMPLE LAWS- No Lack of
Legislations, Ideas, Concepts or
for that matter Agendas, like
National Social Security Fund for
unorganized sector workers,
NSDC, Unorganised Workers'
Social Security Act, 2008, RSBY
benefits extended to MNREGA,
SWAVALAMBAN for NPS
subscribers.
REQUIREMENT OF STRICT
EXECUTION- All that is required is
strict and innovative execution
methods. For e.g. with regard to
banking issues of people in
unorganized sectors, should be
allowed opening of savings accounts
even if they don’t own houses,
simply by showing Genuine ration
cards without having to ask the land
lord to act as a guarantor which is a
common practice. Because the need
of time calls for imposing some faith
in them so that the sector can
efficiently be uplifted. Also if the
interest rate is fixed at 2% then it
should be reduced to 1.5% so that
the remaining 0.5% is kept as a
contingency fund that can be
accessed only by reasonable
application to the bank.
WE SAY:
“What thousand
existing dead laws
cannot do, one
properly executed
law can do.”
APPOSITE EXECUTION METHODOLIGY
7. HUMAN AND FINANCIAL RESOURCES/ LEVERAGE
Human resources i.e., of skilled P.O, Bank, Management employees, government workers and socially responsible social workers must
used for the principle. We suggest employing students trained only for the rationale esp. Management students.
Leverages which RBI thinks fit shall be applied.
CORE LEVEL
If the above said concept is a success, inclusion of local banks at advanced level, then National, Private and State banks shall be
done and all under the check & leadership of RBI with strict implementation regulations controlled by the welfare department
constituted for the rationale by the government. A chosen head or management skilled employee of the Banks can be made
responsible towards the same.
PRILIMINARY LEVEL
The concept shall be introduced in the market on a small level like in post offices to begin with and check the
efficiency. Possibly a body within the P.O specially towards the achievement of required purpose shall be made with
the responsible head who shall be appointed by social welfare department and helped/aided by P.O employees
IMPLEMETATION
8. EMPLOY THE UNEMPLOYED
The biggest challenge India is facing
is Unemployment leaving a large
chunk of youths potential being
wasted, Dire need of time calls for
proper channelization of these
resources and using this energy
towards the disadvantaged society.
Fig: Chart showing rising unemployment rates from the
year 1948 to 2012.
Today, more than half of India’s population is under the age of 25 years, with 65 percent
of the population under 35 years of age, in order to accommodate the 300 million
people that will join India's workforce between 2010 and 2040, India needs to create
roughly 10 million jobs a year. None the less a very evident solution to the problem of
unemployment thus exists in employing the youth of India and specifically towards
organizing the unorganized sector by proper channelization of resources and workforce.
9. A body specially for the purpose of allocating the youths their duty and providing them skills and
training towards the propose of appointing them for social welfare activities must be done. Where the
body must consist of a government appointed heads who have the realization of their responsibility
towards the society shall be done, Working under a public-private partnership with firms that will only
and only focus towards the Social wellbeing. This will not just give them employment but job security
too with a bonus help to the society for its up-liftment that will be a major help to the government.
For e.g. In case of awareness programmes which government should pay
more heed to in unorganized sectors; making them aware of their rights with
regard to their work and its systematization they should appoint job seeking
graduates churning out of thousands of Indian institutes that are not just
educated but capable too. Proper funds must be allocated by the government with
the help of private partnerships
India churns out approximately 25% graduates annually out of which 47% are
unemployable as per the Aspiring Minds National Employability Report. Using
this workforce and resource, the dual objective of social welfare and
employment of the youth can be achieved. This idea can be explained with the
example of MBA graduates.
IMPLEMETATION PROCEDURE
10. HYPOTHETICALLY
Let us take 34% of
MBA graduates in
our country who are
unemployed in spite
of having the skill
and qualifications,
WENEED
There exists an
unorganized sector for
e.g. the occupation of
making brick kilns in
the economy whose
resources if properly
channelized would
boost the economy.
With the problematic
system of middle men
and lack of
appropriate marketing
techniques, What is
required is apt market
training and
awareness of the same
to establish a direct
contact with the
consumers.
WEPROPOSE
Thus we propose
that these
‘unemployed’ MBA
students be
employed through
Public Private
Collaborations and
given the assurance
of working in a
public sector as a
government
employee and on
the other hand
woken up to their
responsibilities
before being
appointed.
MODEL FOR IMPLEMENTATION OF YOUTH
EMPLOYMENT CONCEPT
11. PROPER CENSUS AIMING AT EFFICIENT
GDPACCOUNTING
MODEL FOR IMPLEMENTATION OF PROPER GDP
ACCOUNTING AS TO THE INFORMAL SECTOR
The Census conducted lacks
classification and exactness
as to informal sector annually
on a large scale. Since census
conducted is in bits and
pieces and confined to areas
covered under any specified
organization for their own
benefit.
Required is a record of these
workers classified and
mentioned on the criteria so
that proper formulation and
implementation of policies by
the government could be
done. Their proper .Such
division could be
instrumental to the
government in analysing their
contribution to the National
Income and GDP and
providing measures for the
improvement of the same.
Thus we propose that a proper
census be conducted annually
which should be divided
categorically and published
effectively for data to be
matched and growth marked.
The workforce for the same
should not be an issue for the
government taking into
consideration the huge problem
of unemployment. Funds if
available for census twice a year
it hopefully can also be tackled
by the government.
12. MODEL FOR IMPLEMENTING PROVISIONS FOR
EDUCATION OF CHILDREN
Very strict observation when it comes to children
taking part in unorganized sectors and they should
be prevented from taking part in it since legal
restrictions like Child Labour Prohibition and
Regulation Act, 1986 exist.
These children need a safe environment from what
they are already going through considering they are
forced into this sector by unscrupulous parents
greedy for money paying least heed to their
upbringing and education.
Hence we propose that government where it finds
such children working illegally in such sectors should
be pulled out from existing conditions and give them
shelter in government instituted Reformatory Homes
tending to impart basic education, vocational skills
and better environment for an all-round development.