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The Informal Sector in India

Author

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  • Dibyendu Maiti

    (Institute of Economic Growth University of Delhi Enclave, India E-mail: mdibyendu@yahoo.com)

  • Kunal Sen

    (Institute of Development and Policy Management University of Manchester, UK E-mail: kunal.sen@manchester.ac.uk)

Abstract

Is the informal sector in India a means of exploitation or a means of accumulation? One view takes the informal sector to be a site for primitive capital accumulation, with underpaid workers working in abysmal conditions. Another view takes the informal sector to be the venue for economic dynamism and entrepreneurial creativity. In this article, we evaluate these two views in relation to theories of the informal sector and empirical studies on India. We argue that both views have merit in the Indian context and accounts of the informal sector in India need to take into account the complexity and heterogeneity of production and labour relations that characterises the sector.

Suggested Citation

  • Dibyendu Maiti & Kunal Sen, 2010. "The Informal Sector in India," Journal of South Asian Development, , vol. 5(1), pages 1-13, April.
    • Handle: RePEc:sae:soudev:v:5:y:2010:i:1:p:1-13
    DOI: 10.1177/097317411000500101
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    References listed on IDEAS

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    Cited by:

    1. Martha Chen & Sophie Plagerson & Laura Alfers, 2022. "A new social contract inclusive of informal workers," WIDER Working Paper Series wp-2022-49, World Institute for Development Economic Research (UNU-WIDER).
    2. Rayees Ahmad Sheikh & Sarthak Gaurav, 2020. "Informal Work in India: A Tale of Two Definitions," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 1105-1127, September.
    3. Pande Rekha, 2019. "Globalisation and Women’s Work in the Beedi Industry," Studia Historiae Oeconomicae, Sciendo, vol. 37(1), pages 191-221, December.
    4. Alessandra Mezzadri & Kaustav Banerjee, 2021. "The afterlife of industrial work: Urban-to-rural labour transitions from the factory to the informal economy," WIDER Working Paper Series wp-2021-158, World Institute for Development Economic Research (UNU-WIDER).
    5. Paraskevi Koufopoulou & Colin C. Williams & Athanassios Vozikis & Kyriakos Souliotis, 2019. "Shadow Economy: Definitions, terms & theoretical considerations," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 9(5), pages 1-3.
    6. Barmon, Basanta Kumar, 2011. "Expenditure Patterns Of Some Informal Sectors In Bangladesh: An Empirical Evidence Of Dhaka City," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 34(1-2), pages 1-16, December.
    7. Bishwanath Goldar, 2010. "Informalization of Industrial Labour in India: Are labour market rigidities and growing import competition to blame?," Working Papers id:3125, eSocialSciences.
    8. Roychowdhury, Punarjit, 2011. "Regulation, enforcement and informality: an analysis based on selected countries," MPRA Paper 32150, University Library of Munich, Germany.
    9. Roychowdhury, Punarjit & Dutta, Mousumi, 2011. "Regulation, enforcement and informality: an analysis based on selected countries," MPRA Paper 30818, University Library of Munich, Germany.
    10. Alka Gupta & Safal Batra & Vishal K. Gupta, 2022. "Gender, culture, and implicit theories about entrepreneurs: a cross-national investigation," Small Business Economics, Springer, vol. 58(2), pages 1073-1089, February.
    11. Ramani, Shyama V. & Thutupalli, Ajay & Medovarski, Tamas & Chattopadhyay, Sutapa & Ravichandran, Veena, 2013. "Women entrepreneurs in the informal economy: Is formalization the only solution for business sustainability?," MERIT Working Papers 2013-018, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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