A Critical Analysis of Covid-19 Impact on Unorganized Sector in Indian Economy

Author:Saleha*

Abstract:
The coronavirus pandemic arises as huge shock to the labour market in India, hitting the employment situation and threatening the existence and survival of millions of workers and their families. In India there are so many small and big industries comprising un organized sectors in which large portion of total work force is engaged ,but it is very difficult to organize them, , nor can their data be collected related to how many people are working in these sectors in India and how much they have income and how they live their lives, despite the Government of India providing financial help to millions of laborers and farmers, these people could not get financial help because there is no systematic data for their identification of these people in India. Absence of job security, no paid leave, or improper job contract makes them exposed to severe difficulties of the labour market. Unorganized sector shall lead to a state of destitution, hunger, starvation and even death, if not protected with an immediate social safety net. According to the latest investigation of the Centre For Monitoring Indian Economy (CMIE), the inclusive rate of unemployment has increased from 8.4 percent to 23.8 percent in the week ending 29 March 2020.Covid-19 has not proved to played havoc as health crises but also as a financial crises in all over the world. In India the number of unemployed people has risen from 32 million to 38 million in total, in which 30 percent comprises from urban and 21 percent from rural areas. The objective of this paper is to focus attention on the vulnerability of the unprivileged workers from the unorganized sectors of the country.

Keywords:Key Words: Covid-19, corona virus, unorganized sector, unemployment, CMIE, Labour market and migrants.

DOI:10.46333/ijtc/9/1/7

International Journal of Trade & Commerce (Vol: 9 Issue:1)