Though informal labour market constitutes 93 percent of Indian economy, there is no legislation for their inclusive development resulting in the absence of decent work environment  and livelihood  for their skills and capabilities.

At the discussions held on topic “the invisible worker: informal labour in India” at the ORF last evening the panelist spoke on how to improve working conditions of the growing informal sector in India and its implications on labour force in future.

 Half of India’s national output comes from  the  unorganized  informal sector  that provides employment to large segment of working force and significantly  contributes to the gross domestic product. Even though 13 million people enter the workforce every year and all government planning goes to the organized sector, only seven percent  of the workforce is absorbed .

Because  informal sector is unauthorized  they work in illegality under adverse , illegal  unauthorized conditions. With 2,50,000 hawkers in Mumbai , minimum wages are not sufficient to raise a family. Almost 50% workforce  is employed in rural area contributes  18 percent of GDP.

Giving the example of Dharavi , Advocate Vinod Shetty ,Director,ACORN Foundation India, works on labour laws said that in Dharavi, all laws are violated . There are open gasses, no labour laws and  occupational safety standards  or pollution control laws .”Where value of labour is falling , profits are increasing.”   In utter dismay Shetty said that labour laws do not include informal sector workers. “ In a planned manner, workers from formal sectors are being pushed into the informal sector  to  contractualize labour.”

According to the National Sample Survey (NSS) 2004-2005, 458 million  people were employed in the informal sector an increase of 61 million people (15.4% )since NSS survey conducted in 1999-2000.Employment in the organized sector remained constant at around 35 million in the same period.

Emphasizing on an attitudinal  realization  for contribution of informal workers  and legal protection to  give them visibility, Sharit Bhowmik, Dean, School of Management and Labour Studies, TISS said that  inclusive planning of poor for better cities is  very important “ If contribution of  60% people living in slums is not included in planning  it may have serious implications. In 1998 roughly 400 crore of rupees was collected as rent by police and municipality from street vendors.”

State Secretary, Centre of Indian Trade Unions, Affiliate of the CPI(M), Vivek Monteiro  said “ it is a dilemna  because in a democratic country most  voters are from informal sector who actually don’t count. On election day people from unorganized sector line up at the polling booths and cast votes and elect  legislators . If vast majority of voters are from the informal sectors, then why is it that laws are not made to include informal sectors in plans.”

“Since economic liberalization, one of the reforms on the agenda has been  labour market derularisation. Do we have  regulated labour market that it need to be deregulated? Or does the informal sector require stronger regulation?”  the state secretary questioned.

He suggested formation of boards like welfare boards for different sectors, regularizing and legalizing   slums residents and issueing an identity card to street vendors.

“Most  of new investment has been in capital intensive low labour industries. Something has to one taken from the organized sector and something needs to be given to the unorganized sector . The answers have to be found otherwise labour will be drifting away to other countries” said R N Bhaskar, Advisor ,ORF, in  his closing remarks.