1. SWAGAT PATRA DEEPAK KUMAR KUMAR GOURAV RAHUL DAS SHASHANK JHA
Protecting the vulnerable:
Providing social security to informal sector workers

2. The deep rooted menace & its scope
 90% workforce of India is engaged in informal sector & it’s contribution
to net domestic product is more than 47.7%
 487 million employed in informal sector as compared to 27.5 million in
formal sector
 32.1% children (0-14yrs) hired forcefully in informal sector
 60-80% of homeworkers(domestic servants) in India are women
0
2
4
6
8
10
12
14
16
UP AP WB MH TN GJ KN OR MP KA RJ BR DEL PB HR AS JH CG JK UT HP
Role of informal sector in employment
%AGE OF INFORMAL WORKERS IN EACH STATE

3. ++
 Degrading socio-economic scenario
• Stiff competition from free trade policies(e.g.
Liberalization , Privatization Globalization
(LPG))
• Corresponding cost reduction techniques-
flexible workforce-contractual labor
 Rapid population growth
• Worsening living standards (lack of basic
amenities health, sanitation, nutrition
,education )
• Children hired to work in appalling conditions
& Women facing pay disparity and abuse.
 Large and unskilled mass
• Lack of occupational safety & services
• No concept of trade/labor union
 Stiff competition from organized sector
• Unfair competition (Walmart, Reliance)
• Buyer preference for ‘cleaner’ retail stores
• Legal bullying
• Financial aid not easily available to compete
The more the
inability to
compete the
worse the poverty
The greater the
poverty the
poorer the health
and ability to
access education
The lesser the
education the lesser
the quality of
production and the
lesser the income
The lesser the
income the lesser
the savings and
investment capital
The lesser the
investment the
more the inability
to compete
THE VICIOUS CYCLE
OF
LOW INCOME &
LOW
PRODUCTIVITY
CAUSES
INFORMAL sector contributes a lot by way of goods & services in FORMAL sector but
still it depends on FORMAL sector for basic essential necessities

4. Quality HR Legal
affairs
Infra-
structure
PARENT BODY
Finance Marketing
& media
Recruitment
Evaluation
Quality
assurance
Quality
Control
SURVEILLANCE
Dedicated
window
Media
campaigns
ITIs
Civil
dept.
LOGISTICS
Short term
loans
Salary
HAVING A NATIONAL BODY FOR ORGANIZING AND HARNESSING THE POTENTIAL IS AN
INNOVATIVE WAY TO UPLIFT THE INFORMAL SECTOR
REGISTRATION
Retail
outlets

5. PARENT BODY
• All
distinguished
IAS,IPS &
other govt.
Officials
• Qualified
volunteers
from different
areas , special
emphasis on
local educated
women
QUALITY
• Maintains
product
quality from
procurement
to processing
till finished
product
• R&D to devise
techniques to
keep products
competitive
HR
• Employs all
unemployed &
meagre
income
workers after
basic skills
training
• Periodic
evaluation to
reward more
industrious
individuals
INFRA-
STRUCTURE
• Setting up of
ITIs , BPOs &
retail training
centers with
relevant
curriculum
• Creation of
sheds for
street
vendors,
storage
facilities, retail
stores for
finished goods
FINANCE
• Salary of
employees
,keeping
records of
sales volume ,
quarterly
growth
• Providing
short term
loans with
minimal rate
of interest
MARKETING &
MEDIA
• Effective
marketing
policies ,
Active
campaigning
for products,
• Generation of
revenue by
setting up of
retail outlets
throughout
the state
LEGAL
• Legal
framework for
establishment
& functioning
of this public
body
• Strict action
against those
forcing
women &
children to
work
• Bringing all
trade unions
under a single
umbrella body
PRINCIPAL DEPARTMENTS & THEIR DIFFERENT FUNCTIONS

6. 3%3%4%
5%
6%
8%
60%
11%
The $500 billion retail sector in India
Pharmacy
consumer electronics
jewellery
food services
mobile and telecom
apparel
food and grocery
others
92% of this sector is
unorganized
whereas only 8% is
organized &
controlled mainly
by retailers who
have multiple
outlets
Retail :the next big thing
The informal sector in India is unable to make the most of the opportunities because of a
highly fragmented distribution network

7. • Provision of
tractors ,
harvesters and
other modern
equipments for
small scale
farmers
• The product taken
by govt. for sale
• Organizing small
scale farmers &
daily wage
laborers for
workstations
(govt. body )
• Criteria for
employment-
unemployed given
most priority & so
on
• set of labour to
create value
added products
like-potato chips ,
French fries , corn
flakes , sauces ,
spices etc.
• Set of labour
employed in
packaging,
storage &
distribution
• Sale of
transformed farm
products through
govt. owned
outlet chains
spread over the
state
• All paid a fixed
monthly salary by
the govt.
EMPOWERMENTFOCUS FINISHED PRODUCTS REVENUE
• Eliminating
middlemen ,
Small savings
scheme
• Education &
training program
• Providing vessels
trawlers , nets ,
traps
• Coastal areas will
be mainly focused
• Creation of a
unique govt. body
that encompasses
all small
fishermen
(preferably earning
below 1,50,000
per annum)
• Effective warning
system to prevent
unnecessary loss
of lives &
resources
• People also
involved in salting
, smoking ,
packaging and
delivery
• Sale of these
through outlets
spread over the
coastal states
• Provision of
insurance &
retirement
schemes for all
fishermen
FISHERY
AGRICULTURE

8. SURVEILLANCE & USER FRIENDLY MECHANISMS
 Creation of NATIONAL CONTACT POINTS(NCPs)
• NCPs are nothing but local surveillance & help centres
• Govt. employed watchdogs
• The NCPs shall be located in each & every district
• Each state shall have a dedicated office acting as a subsidiary for parent body
in matters of surveillance , provision of equipments ,functioning of Trade
Unions
 Use of TECHNOLOGY
• Use of computers for keeping track of raw materials , finished products & real
time mobile tracking of delivery
• Biometric attendance at storage & packaging centre to ensure efficient
labour utilization
• Setting up of BPOs for weather forecast , warning fishermen regarding bad
weather conditions
 REVAMPING THE STRUCTURE OF TRADE UNIONS
• All diverse & regional trade unions shall be brought under a single
organization
• Periodic elections every 3 yrs monitored by Election Commission of India for
free & fair elections

9. FINANCE
 The employees of the body are its main
shareholders : this provides the necessary
motivation
 Each employee is granted a loan( at min. rate)
according to his/her repayment capacity with a
repayment period of 5 yrs.
 Loans granted to a group of 4-5 members:
this improves quality of social capital ; mutual
support & team spirit
 Only State funds (parent body)can be used for
lending; other organizations can contribute but
through the parent body
 Person taking loan from parent body is barred
from other sources of debt
 A fixed small amount of monthly salary(which is
tax –free) goes for their health insurance &free
medical support
Refund by individual
members
GROUP LENDING
Community managed loan
fund
Community based lending
organisations
SELF- HELP IS BETTER THAN CHARITY

10. Analyze
root
causes
Come up with
actions &
prioritize
Training & skill
development
camps
Active media
campaign to
boost sales
Implement
structural &
financial
improvements
using closed loop
feedback system
& system analysis
Regular door
to door survey
& filling
questionnaire
Train employees
based on
gathered data
using modern
tech & user
friendly software
Once sales
reach a
substantial
level , the
system
becomes self
sustaining
Gradually more &
more low income
families to be
included
Checking no.
of school
going
children
Compulsory
contribution of
1.5% for
insurance
benefits
Diverting CSR
funds for
boosting
infrastructure
SCALABILITY & SUSTAINABILITY
Funds
from state
managed
finance
orgs

11. • Social
a) Taking care of children & household
b) Traditional Indian family system forcing women
to stay indoors
• Economic
a) Initial resources & funds for infrastructure &
financial schemes
b) Providing equipments on such a large scale to
large group
• Political
a) Holding free & fair elections for trade unions
b) Preventing unauthorized intervention of
political parties
• Legal
a) Reservation of 33% jobs for women
b) Providing dedicated market share protection
c) Organizing all the scattered trade unions
• Technical
a) Providing sustainable technology &
equipments
b) Preventing misuse or inefficient use by
unskilled workforce
• Awareness campaign & Creation of crèches
for women workers to enable them too
have a healthy work-life balance
• Special emphasis to employ LOCAL
EDUCATED HOMEMAKERS in imparting
vocational & communication skills and
felicitating them publicly
• Provision to allow women to become
leaders in trade unions
• EC supervised elections for trade unions
• Separate bill for providing reservation to
women
• Bringing all trade unions under a single
national umbrella.
• Exclusive Research centers for low cost,
durable & energy efficient equipments
• Organization of Training camps periodically
to improve quality of workforce
• Tapping into CSR pool for funds
• Single massive scheme creating small
public sector undertakings (PSUs)so that it
becomes self sustaining after 2-3 yrs.
CHALLENGES MITIGATION FACTORS
S
O
C
I
A
L
E
C
O
P
O
L
T
E
C
H
LE
G
AL
KEY PROBLEMS & THEIR EXTENUATION

12. APPENDIX
REFERENCES:
1. The Informal Economy: Fact Finding Study". Department for Infrastructure and
Economic Cooperation. Retrieved 20 November 2011
2. Report on conditions of work and promotion of livelihoods in the unorganised sector.
New Delhi: National Commission for Enterprises in the Unorganised Sector. 2007.
3. World Bank (2010). "Shadow Economies All over the World". World Bank. Retrieved 15
July 2011.
4. Carr, Marilyn and Martha A. Chen. 2001. “Globalization and the Informal Economy: How
Global Trade and Investment Impact on the Working Poor”. Background paper
commissioned by the ILO Task Force on the Informal Economy. Geneva, Switzerland:
International Labour Office.
5. "The Commission on Legal Empowerment of the Poor". United Nations Development
Program. Co-chaired by de Soto and former secretary of state Madeleine Albright.
6. National Sample Survey Office". Press Information Bureau, Government of India.
Retrieved 2012-11-20