Understanding India’s Unorganised Sector: Challenges and Opportunities
Abhishek Singh
Top Voice 2023 | Entrepreneur with 12+ years of exp | Seeking New Challenges | Astute Observer
The Cultivate Newsletter
Dear fellow entrepreneurs and startup enthusiasts,
As we continue to explore the intricacies of India's economy, it's essential to shed light on the often-overlooked unorganised sector. Employing over 90% of the workforce, this sector is a vital component of our nation's economy. However, it faces numerous challenges that hinder its growth and development.
In the latest article, we delve into the world of India's unorganised sector, exploring its characteristics, impact on the economy, and the opportunities for growth. We discuss the effects of demonetisation, GST, and automation on the sector, as well as the need for policy reforms and support systems.
Key Takeaways:
1. Unorganised sector employs 90% of India's workforce: This sector is a crucial part of the economy, providing livelihoods to millions.
2. Demonetisation severely impacted the unorganised sector: The abrupt withdrawal of high-denomination notes left many small businesses and laborers without working capital.
3. GST is a misfit for India's economy: The tax reform has created a significant burden for small businesses in the unorganised sector, making it challenging for them to compete with organised players.
4. Automation threatens traditional jobs: The rise of AI and robotics poses a significant challenge to the unorganised sector, leading to job losses and a growing concern over future employment opportunities.
Strategies to Support the Unorganised Sector:
1. Access to finance: Providing microloans and financial support can help businesses sustain operations and invest in growth.
2. Skill development: Training programs can enhance the skills of workers in the unorganised sector, improving productivity and employability.
3. Policy reforms: Simplifying tax regulations and providing incentives for formalisation can encourage unorganised businesses to transition into the formal economy.
4. Market access: Facilitating access to markets through digital platforms can help unorganised businesses reach a broader customer base.
领英推荐
The Future of GST and Its Alignment with Indian Economy:
The future of GST in India depends on its ability to adapt to the unique needs of the economy. Simplifying the tax structure and reducing compliance burdens can help the unorganised sector thrive.
The Political Weight of the Bottom Economy:
The political landscape in India often overlooks the needs of the unorganised sector. Mobilising the unorganised workforce and supporting trade unions can lead to greater political representation and influence.
Pathways to Becoming a Developed Nation:
For India to achieve developed nation status, it must address the challenges faced by the unorganised sector. Investing in human capital and ensuring equitable access to resources will empower the unorganised sector, driving economic progress and reducing poverty.
Stay tuned for more insights and updates on the Indian startup ecosystem and economy. If you have any questions or topics you'd like to discuss, feel free to reach out.
Best,
Abhishek S Chauhan
Subscribe to The Cultivate Newsletter
Stay up-to-date with the latest news, trends, and insights from the Indian startup ecosystem and economy. Subscribe now and join the conversation!
Follow me on LinkedIn
Let's connect and explore the world of startups and entrepreneurship together!
Previous Issues:
https://abhishekschauhan.com/2024/01/23/from-conflict-to-closure-the-comprehensive-timeline-and-impact-of-indias-ram-mandir-verdict/ From Conflict to Closure: The Comprehensive Timeline and Impact of India's Ram Mandir Verdict
https://abhishekschauhan.com/2022/12/23/unlock-your-potential-and-break-away-from-habits-to-create-positive-change/ Unlock Your Potential And Break Away From Habits To Create Positive Change
https://abhishekschauhan.com/2023/08/05/the-story-of-tata-neu-unlocking-convenience-and-efficiency-in-india-with-a-multi-purpose-super-app/ The Story of Tata Neu: Unlocking Convenience and Efficiency in India with a Multi-Purpose Super-App
Content Marketing Maestro & Budget-Savvy Scout: I craft words that wow & find deals that save, fueling your brand's success.
1 个月This exploration of the unorganized sector is enlightening! Supporting such a vital part of our economy is crucial. Let's innovate ways to uplift it seamlessly.v