{"id":34118,"date":"2018-10-30T15:54:56","date_gmt":"2018-10-30T10:24:56","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34118"},"modified":"2018-10-30T15:54:56","modified_gmt":"2018-10-30T10:24:56","slug":"informal-is-normal","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/informal-is-normal\/","title":{"rendered":"Informal is normal\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/opinion\/op-ed\/informal-is-normal\/article20005296.ece\"><span style=\"font-weight: 400;\">Informal is normal<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><strong>Context: \u00a0<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">After a year of demonetisation in India it is time that the informal sector is given the much need attention. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It is to be understood that both the formal and informal sector move in parallel lines for the betterment of the country&#8217;s economy. <\/span><\/li>\n<\/ul>\n<p><b>What is \u00a0the meaning of demonetization?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Demonetization is the act of stripping a currency unit of its status as legal tender.<\/span><\/li>\n<\/ul>\n<p><b>It occurs whenever there is a change of national currency.<\/b><b><br \/>\n<\/b><b>Purpose: <\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Demonetization is necessary whenever there is a change of national currency.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The old unit of currency must be retired and replaced with a new currency unit.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The move is also taken to curb the menace of black money, fake notes and corruption by reducing the amount of cash available in the system. <\/span><\/li>\n<\/ul>\n<p><b>In the context of India: <\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">On November 8, 2016 Prime Minister announced that Rs 500 and Rs 1000 denomination notes will become invalid.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The government introduced new notes of Rs 2,000 and Rs 500 .<\/span><\/li>\n<\/ul>\n<p><b>What are the impacts of demonetisation on the informal sector of India? <\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Decline in growth of economy: The recent estimates show that the Indian economy grew at only 6.1% in the fourth quarter of 2016-17 compared to the expected 7.1%. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Gross value added growth at basic prices also declined from 6.7% in the third quarter to 5.6% in the fourth quarter and is much lower than 8.7% in the fourth quarter of 2015-16. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Labour: Demonetisation has hurt the informal economy and triggered a rush for distress labour under job guarantee scheme (MGNREGA). <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Restriction on cattle market: The cattle market restrictions are especially damaging to farmers, as it will lower the price of their livestock and make its sale difficult. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The ban will also adversely affect the livelihood of millions of people working in beef and leather industry.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Misconception: The government see the informal and the formal sector as two clearly distinct groups. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">As a result, many of their arguments are based on a hidden assumption that the informal sector is not involved in the market exchanges with the formal sector.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">When the decline in sales and prices spreads from the informal sector to the formal one, the financial situation of the country is effected as a whole. <\/span><\/li>\n<\/ul>\n<p><strong>What are the measures to be taken? \u00a0<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is a need to strengthen government schools and health facilities.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This could disproportionately benefit poor and low-income children and families who likely operate in the informal economy. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There should be focus on improving productivity of informal enterprises by creating awareness of good business practices and prevailing market conditions. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Reducing the threat of coercive government regulation and action can also help informal workers earn a living without constant harassment of police and inspectors.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Informal is normal\u00a0 Context: \u00a0 After a year of demonetisation in India it is time that the informal sector is given the much need attention. It is to be understood that both the formal and informal sector move in parallel lines for the betterment of the country&#8217;s economy. What is \u00a0the meaning of demonetization? Demonetization&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/informal-is-normal\/\">Continue reading <span class=\"screen-reader-text\">Informal is normal\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34118","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704031883},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34118","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\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34118"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34118\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}