{"id":144450,"date":"2021-11-01T19:00:38","date_gmt":"2021-11-01T13:30:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=144450"},"modified":"2021-11-01T19:00:38","modified_gmt":"2021-11-01T13:30:38","slug":"informal-sector-shrank-sharply-in-2020-21","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/informal-sector-shrank-sharply-in-2020-21\/","title":{"rendered":"\u2018Informal sector shrank sharply in 2020-21\u2019"},"content":{"rendered":"\n<h5><b>What is the News?<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">State Bank of India\u2019s(SBI) economic research department has released the Ecowrap Report.<\/span><\/p>\n<h5><b>What are the key findings of the Ecowrap Report?<\/b><\/h5>\n<figure id=\"attachment_144456\" aria-describedby=\"caption-attachment-144456\" style=\"width: 451px\" class=\"wp-caption alignleft\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-144456 size-full\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/11\/494305ee_4516964_101_mr.jpeg?resize=451%2C295&#038;ssl=1\" alt=\"\" width=\"451\" height=\"295\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/11\/494305ee_4516964_101_mr.jpeg?w=451&amp;ssl=1 451w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/11\/494305ee_4516964_101_mr.jpeg?resize=300%2C196&amp;ssl=1 300w\" sizes=\"auto, (max-width: 451px) 100vw, 451px\" \/><figcaption id=\"caption-attachment-144456\" class=\"wp-caption-text\">Source: The Hindu<\/figcaption><\/figure>\n<p><b>Formalisation of Economy<\/b><\/p>\n<p><span style=\"font-weight: 400;\">India\u2019s informal economy has reduced by around 15-20% of the formal GDP <\/span><span style=\"font-weight: 400;\">in 2020-21, <\/span><span style=\"font-weight: 400;\">compared to 52% in 2017-18. This signals a <\/span><span style=\"font-weight: 400;\">greater shift towards the formalisation of the economy.<\/span><\/p>\n<p><b>Reasons for the formalisation: <\/b>A<span style=\"font-weight: 400;\">doption of GST, Enhanced digitalisation and Demonetisation.<\/span><\/p>\n<h5><b>Impact of Pandemic on Informal Sector<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">Around 93% of India\u2019s workforce is part of the informal economy (NSSO 2014). Hence, the impact of the pandemic was felt more by the informal sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, while the formal sector is now back to pre-pandemic levels, the informal sector continues to struggle.<\/span><\/p>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> Informal Sector <\/span><span style=\"font-weight: 400;\">consists of \u201cown-account\u201d or unorganised enterprises employing hired workers. The highest share of the informal sector is in agriculture, where holdings of small and fragmented farmers are highest.<\/span><\/p>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><strong>Must read<\/strong>: <a style=\"font-family: inherit; font-size: inherit; background-color: var(--global--color-background);\" title=\"India\u2019s informal economy: Challenges and solutions \u2013 Explained, pointwise\" href=\"https:\/\/forumias.com\/blog\/indias-informal-economy-challenges-and-solutions-explained-pointwise\/\" target=\"_blank\" rel=\"noopener\">India\u2019s informal economy: Challenges and solutions \u2013 Explained, pointwise<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Source: <\/b>This post is based on the following articles<\/p>\n<ul>\n<li><b>\u201cInformal sector shrank sharply in 2020-21\u201d <\/b><span style=\"font-weight: 400;\">published in<\/span><b> The Hindu on 1st November 2021.<\/b><\/li>\n<li><b>\u201cIn three years, the informal economy dropped to 15-20% from 52%, says SBI report\u201d <\/b><span style=\"font-weight: 400;\">published in<\/span><b> Indian Express on 1st November 2021.<\/b><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the News? State Bank of India\u2019s(SBI) economic research department has released the Ecowrap Report. What are the key findings of the Ecowrap Report? Formalisation of Economy India\u2019s informal economy has reduced by around 15-20% of the formal GDP in 2020-21, compared to 52% in 2017-18. This signals a greater shift towards the formalisation&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/informal-sector-shrank-sharply-in-2020-21\/\">Continue reading <span class=\"screen-reader-text\">\u2018Informal sector shrank sharply in 2020-21\u2019<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,1305,9],"tags":[],"class_list":["post-144450","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-index-reports-bodies","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700228863},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/144450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=144450"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/144450\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=144450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=144450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=144450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}