Informal Economy in India – A 61% Reality

Informal Economy in India – A 61% Reality

India’s informal economy makes up over 61% of total employment. But what does “informal” really mean?

🧱 Definition

Informal jobs are those without formal contracts, benefits, or long-term security—like street vendors, gig workers, or daily wage laborers.

📊 Key Data

• Street vendors: 1 crore+
• Daily wage workers: 45% of labor force
• Gig economy: Rapidly growing post-2020

📉 Challenges

No job security, lack of insurance, irregular income, and zero pension coverage. These gaps widen the development divide.

Insight: Tracking informal data helps create better public policies and financial inclusion strategies.