2.4-Organised and Unorganised Sectors

2.4-Organised and Unorganised Sectors Important Formulae

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2.4-Organised and Unorganised Sectors
  • Organised Sector: Refers to the sector where employment and working conditions are regulated by government laws and policies.
  • Unorganised Sector: Involves the sector with unregulated work conditions, low wages, and lack of job security.
  • Examples of Organised Sector: Public and private sector companies, government institutions.
  • Examples of Unorganised Sector: Agriculture, small-scale industries, casual labor.
  • Job Security: Organised sector provides better job security and benefits.
  • Income Differences: Unorganised sector workers generally earn less compared to organised sector workers.

The Indian economy comprises both organised and unorganised sectors, each playing a vital role in employment generation and economic activity. Understanding the differences between these sectors is essential for comprehending the overall structure of the economy.

1. Definition of Organised Sector

The organised sector includes businesses and enterprises that are registered and regulated by the government. This sector follows formal rules and regulations, provides employment benefits, and maintains records of employees and their working conditions.

2. Characteristics of the Organised Sector
  • Legal Status: Operates under government regulations and laws.
  • Job Security: Employees enjoy benefits such as a fixed salary, pensions, and health insurance.
  • Work Conditions: Better working conditions and facilities compared to the unorganised sector.
  • Tax Compliance: Entities are required to pay taxes and adhere to labour laws.
3. Examples of Organised Sector

Examples include large corporations, government agencies, banks, and multinational companies. Sectors such as manufacturing, information technology, and public services are predominantly organised.

4. Definition of Unorganised Sector

The unorganised sector comprises small, informal businesses and self-employed individuals who do not follow formal regulations or maintain records. This sector is characterized by a lack of job security and employee benefits.

5. Characteristics of the Unorganised Sector
  • Informal Nature: No registration or legal framework governing operations.
  • Job Insecurity: Workers do not have guaranteed employment, benefits, or pensions.
  • Low Wages: Workers often receive lower wages and face uncertain working conditions.
  • Non-compliance with Laws: Limited adherence to labour laws and regulations.
6. Examples of Unorganised Sector

Examples include street vendors, agricultural workers, construction laborers, and small shops. This sector employs a significant portion of the workforce, particularly in rural areas.

7. Size and Employment

The unorganised sector accounts for a substantial share of employment in India, often exceeding that of the organised sector. This highlights the importance of informal jobs in providing livelihoods to millions, especially in low-income communities.

8. Economic Contributions

Both sectors contribute to the economy but in different ways. The organised sector contributes significantly to GDP and tax revenue, while the unorganised sector plays a critical role in employment and providing goods and services to local markets.

9. Challenges Faced by the Unorganised Sector

Workers in the unorganised sector often face challenges such as lack of access to social security, poor working conditions, and limited opportunities for skill development. These challenges hinder their economic mobility and overall quality of life.

10. Government Initiatives

The government has implemented various schemes to support workers in the unorganised sector, such as skill development programs, financial inclusion initiatives, and social security measures. These efforts aim to improve the working conditions and livelihoods of informal workers.

11. Need for Formalisation

There is a growing emphasis on formalising the unorganised sector to enhance workers' rights, improve working conditions, and ensure better compliance with labour laws. Formalisation can lead to increased productivity and economic growth.

In summary, the organised and unorganised sectors represent different facets of the Indian economy, each with its own characteristics, challenges, and contributions. Understanding these differences is crucial for effective policy-making and economic planning.


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2.4-Organised and Unorganised Sectors

भारतीय अर्थव्यवस्था में दो प्रकार के क्षेत्र होते हैं - संगठित क्षेत्र और असंगठित क्षेत्र। ये दोनों क्षेत्र श्रम, पूंजी, और प्रबंधन के दृष्टिकोण से भिन्न होते हैं। इनका प्रभाव अर्थव्यवस्था में रोजगार, उत्पादन, और आय वितरण पर पड़ता है।

संगठित क्षेत्र

संगठित क्षेत्र वह क्षेत्र है, जिसमें काम करने वालों के लिए एक निश्चित कानूनी ढांचा और नियम होते हैं। इस क्षेत्र में काम करने वाले श्रमिकों को एक निश्चित वेतन, काम के घंटे, और सुरक्षा की गारंटी होती है। उदाहरण के लिए, सरकारी विभाग, बड़े कारखाने, बैंक, आदि।

  • कानूनी सुरक्षा: इस क्षेत्र में काम करने वाले श्रमिकों को श्रम कानूनों के तहत सुरक्षा मिलती है। जैसे, काम के घंटे, छुट्टियाँ, स्वास्थ्य लाभ, और सेवानिवृत्ति लाभ।
  • नियंत्रित प्रक्रिया: कामकाजी घंटों, कार्य शर्तों, और अन्य सुविधाओं के बारे में एक निश्चित नियम होते हैं।
  • नियमित वेतन: कामकाजी के लिए नियमित वेतन और सुविधाएँ मिलती हैं।
असंगठित क्षेत्र

असंगठित क्षेत्र वह क्षेत्र है जिसमें श्रमिकों को कोई कानूनी सुरक्षा नहीं होती। यहां कार्य शर्तें और श्रमिकों के अधिकार अस्पष्ट होते हैं। असंगठित क्षेत्र में काम करने वाले लोग अक्सर अस्थिर, असुरक्षित और न्यूनतम वेतन पर काम करते हैं। उदाहरण के लिए, घरेलू नौकर, निर्माण मजदूर, सड़क विक्रेता, आदि।

  • कानूनी सुरक्षा का अभाव: असंगठित क्षेत्र में काम करने वाले श्रमिकों को श्रम कानूनों से सुरक्षा नहीं मिलती।
  • अस्थिर कार्य स्थिति: असंगठित क्षेत्र में काम की स्थिति अक्सर अस्थिर होती है। श्रमिकों के लिए काम के घंटे, वेतन, या छुट्टियाँ निर्धारित नहीं होतीं।
  • न्यूनतम वेतन: यहां काम करने वाले श्रमिकों को सामान्यत: न्यूनतम वेतन मिलता है और उन्हें नियमित वेतन या लाभ नहीं मिलते।
संगठित और असंगठित क्षेत्र में अंतर

संगठित और असंगठित क्षेत्रों के बीच कुछ मुख्य अंतर होते हैं:

विशेषता संगठित क्षेत्र असंगठित क्षेत्र
कानूनी सुरक्षा हां नहीं
वेतन नियमित न्यूनतम
कार्य की शर्तें नियंत्रित अस्पष्ट
स्थिरता स्थिर अस्थिर
विकास की संभावना अधिक कम
असंगठित क्षेत्र की समस्याएँ
  • श्रमिकों का शोषण: असंगठित क्षेत्र में काम करने वाले श्रमिकों का शोषण किया जाता है क्योंकि उनके पास कोई कानूनी सुरक्षा नहीं होती।
  • अल्पकालिक रोजगार: असंगठित क्षेत्र में काम स्थिर नहीं होता, जिससे श्रमिकों को नियमित आय नहीं मिल पाती।
  • आय में असमानता: असंगठित क्षेत्र में काम करने वाले श्रमिकों की आय बहुत कम होती है, जो सामाजिक असमानता को बढ़ावा देती है।
संगठित क्षेत्र का उदाहरण

सरकारी कार्यालय, सार्वजनिक क्षेत्र के उपक्रम, बड़े औद्योगिक संयंत्र, और बैंक संगठित क्षेत्र के उदाहरण हैं। यहां श्रमिकों को विभिन्न सामाजिक और कानूनी लाभ प्राप्त होते हैं, जैसे कि वेतन, काम के घंटे, छुट्टियाँ, आदि।

असंगठित क्षेत्र का उदाहरण

असंगठित क्षेत्र में शामिल होने वाले कार्यों में सड़क पर ठेले लगाना, घरेलू काम करना, छोटे दुकानदार, और निर्माण मजदूर आदि शामिल हैं।

संगठित और असंगठित क्षेत्र का प्रभाव

संगठित क्षेत्र में काम करने वाले लोग अपनी आय और जीवनशैली को बेहतर बना सकते हैं, जबकि असंगठित क्षेत्र के लोग अक्सर आर्थिक असुरक्षा का सामना करते हैं। इसके अलावा, संगठित क्षेत्र अधिक विकास की ओर अग्रसर होता है, जबकि असंगठित क्षेत्र में विकास की दर धीमी रहती है।

Look at the following examples. Which of these are unorganised sector activities?

  • A teacher taking classes in a school

  • A headload worker carrying a bag of cement on his back in a market

  • A farmer irrigating her field
  • A doctor in a hospital treating a patient
  • 
A daily wage labourer working under a contractor
  • A factory worker going to work in a big factory

  • A handloom weaver working in her house

Solution:

Unorganised Sector Activities
  • A headload worker carrying a bag of cement on his back in a market
  • A farmer irrigating her field
  • A daily wage labourer working under a contractor
  • A handloom weaver working in her house

Suggest improvements/Report errors

Talk to someone who has a regular job in the organised sector and another who works in the unorganised sector. Compare and contrast their working conditions in all aspects.

Solution:

Individuals in the organised sector enjoy job security, regular pay, and benefits like health insurance and retirement plans. Their workplaces adhere to safety regulations and offer formal contracts. In contrast, those in the unorganised sector often face job instability, irregular wages, and no benefits. Their working conditions are usually less safe, with limited access to legal protections. While organised workers have defined work hours, unorganised workers may experience long, unpredictable hours without overtime compensation. Additionally, training and career advancement opportunities are more prevalent in the organised sector compared to the unorganised sector.

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How would you distinguish between organised and unorganised sectors? Explain in your own words.

Solution:

Distinction Between Organised and Unorganised Sectors

The organised sector refers to businesses that are registered, adhere to legal regulations, and offer formal employment with benefits like social security. Employees in this sector receive fixed wages, job security, and follow government guidelines. Examples include large corporations and government enterprises.

In contrast, the unorganised sector comprises informal businesses that operate without registration and lack employee benefits. Workers here often face irregular wages, no job security, and poor working conditions. Examples include street vendors, agricultural laborers, and small workshops. This sector plays a crucial role in providing employment, especially in developing economies.

Suggest improvements/Report errors

The table below shows the estimated number of workers in India in the organised and unorganised sectors. Read the table carefully. Fill in the missing data and answer the questions that follow.

  • What is the percentage of people in the unorganised sector in agriculture?
  • Do you agree that agriculture is an unorganised sector activity? Why?
  • If we look at the country as a whole, we find that ———% of the workers in India are in the 
unorganised sector. Organised sector employment is available to only about ———% of the workers in India.

Solution:

Workers in Organised and Unorganised Sectors

The unorganised sector in agriculture employs around 60% of the agricultural workers. Agriculture is considered an unorganised sector activity due to the lack of formal contracts, job security, and benefits for workers. In India, approximately 90% of the workers are in the unorganised sector, while only about 10% are employed in the organised sector. This highlights the challenges faced by the workforce in terms of stability and rights, making it essential to address these issues for economic development.

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