Protecting India’s Unorganised Sector

In a country like India where almost ninety per cent of the work force belongs to the unorganised sector, social security net is a must. Otherwise, the majority of labourers will always be exploited. They will not get enough wages; will be deprived of post-retirement benefits, health facilities along with many other related facilities will remain out of reach. The ongoing pandemic has exposed how badly these labourers from the unorganised sector are being treated by their employers. The employers dropped them as soon as the lockdown was announced. With no money to fend themselves, the labourers had no other option but to start long journeys back home. While some of them managed to reach their native towns, others were not as lucky as the stress and strain of the journey became unbearable.

It’s a pity that even after seeing the plight of the labourers from the unorganised sector during the pandemic, not much effort has been made to reduce their burdens thus far. ‘One nation, one ration card’ scheme will definitely take care of two square meals. But the ration card will not be able to provide them the same health facilities which the labourers from the organised sector enjoy. The ration card will not offer them job security. It will not allow them to avail the Golden Handshake scheme when their respective companies are not doing well. There are many other issues which cannot be solved by only providing ration cards. Much more needs to be done, if not, the collapse of the unorganised sector will spell doom for the Indian economy.

It must be mentioned here that the unorganised sector is closely related to the Indian economy. It strengthened the Indian economy at times of need. The best example is the 2008 economic depression, when countries like the United States of America and England suffered badly due to the economic depression, India managed to maintain a steady growth rate and in the process became the fastest growing economy in the world. Even after the devastating effect of the pandemic on the economy, when it contracted by nearly 25 per cent, the unorganised sector has helped revive the economy. A simple example will help us to understand the importance of the unorganised sector. Since the last 16 months, big industries have not been able to contribute much to the economy. Same is the case with real estate and the service sector too. Despite all adversities, the reason why the Indian economy is alive and kicking is because of the contributions made by the unorganised sector.

But the unorganised sector has also started bleeding now. Due to the pandemic, the sector has shrunk considerably and as a result, employment opportunities and wages have both gone down considerably. Surely, the need of the hour is to create a social security net around the labourers by taking some concrete steps to prevent exploitation; so that the unorganised sector can regain its health and aid the Indian economy to its full potential.