According to the Ministry of Statistics and Programme Implementation’s most recent Annual Survey of Unincorporated Enterprises, these incidents have taken a combined toll of 16.45 lakh jobs over the course of seven years. The vulnerability of unincorporated businesses is brought to light by the survey.
These businesses, which operate outside of the official regulatory framework, are especially susceptible to changes in policy and disruptive events in the economy. These businesses employed 10.96 crore people in 2022–2023 compared to 11.13 crore in 2015–16, a 1.5% decrease. This decline is a result of the three exogenous shocks’ combined effects on the industry’s ability to maintain jobs.
Source: The Indian Express
The industry has shown resilience in the face of these difficulties. Between 2021–22 and 2022–23, there was a 7.84 percent increase in the expected number of workers and a 5.88 percent increase in the number of businesses. The industry’s Gross Value Added increased by 9.83%, suggesting some improvement. Increased capital investment, credit availability, and increased IT usage all aided in this.
Prime Minister Narendra Modi’s emphasis on job creation in the run-up to the Union Budget, particularly in rural areas and the manufacturing sector, becomes significant in this context. The capacity of the unorganised sector to create jobs is still essential for maintaining economic stability.
Source: Drishti IAS:English
In order to promote sustainable growth, it is critical to address the systemic vulnerabilities revealed by the triple shocks. Targeted policies aimed at fortifying the informal sector and providing a more substantial safety net for workers can help reduce future risks. The Union Government should concentrate on strengthening Center-state relations and enhancing program implementation on the ground.
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