Role and Relevance of Informal Sector
The informal sector plays a crucial role in India’s economy by providing employment to a large portion of the population, especially the poor, women, and unskilled workers. It includes activities like street vending, domestic work, construction, and small-scale manufacturing. Though informal, this sector contributes significantly to GDP and supports livelihoods where formal job opportunities are scarce. It is flexible and low-cost, but lacks job security and social benefits. Recognizing and supporting this sector is important for inclusive growth and poverty reduction.