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Home » Sharp dip in informal sector
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Sharp dip in informal sector

News DeskBy News Desk3 November 2021No Comments1 Min Read
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The share of the large informal sector in overall economic activity dipped sharply in 2020-21, an SBI report said.

 

This shows a greater shift towards the formalisation of the economy.

 

The share of the informal economy may have shrunk to no more than 20% of the economic output.

 

A senior SBI official termed this “a positive development”.

 

An IMF policy paper had estimated that the share of India’s informal economy in the Gross Value Added was at 53.9%.

 

The informal sector consists of unorganised enterprises employing hired workers.

 

The highest share of such unorganised activity is in agriculture where holdings are small.

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