Business Tit-Bits: Informal Sector, Formally Crushed!
Signalling a greater shift towards formalisation of the economy, the share of the large informal sector in overall economic activity dipped sharply in 2020-21 even as informal workers continue to bear the brunt of the pandemic’s adverse effects, the SBI said in a research report. Concluding that the share of the informal economy may have shrunk to no more than 20% of the economic output from about 52% in 2017-18, SBI group chief economic advisor Soumya Kanti Ghosh termed this “a positive development” amid the pandemic.
Signalling a greater shift towards formalisation of the economy, the share of the large informal sector in overall economic activity dipped sharply in 2020-21 even as informal workers continue to bear the brunt of the pandemic’s adverse effects, the SBI said in a research report. Concluding that the share of the informal economy may have shrunk to no more than 20% of the economic output from about 52% in 2017-18, SBI group chief economic advisor Soumya Kanti Ghosh termed this “a positive development” amid the pandemic. In this episode of the Business Tit-Bits, our Business Editor Mr Akhilesh Bhargava shares his take on the matter.
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