Comparative study of informal sector in India and her neighbouring countries Srilanka and Bangladesh

International Journal of Development Research

Article ID: 
8 pages
Research Article

Comparative study of informal sector in India and her neighbouring countries Srilanka and Bangladesh

SMT. Nabanita De and Dr. Susmita Banerjee


The Asian Development Bank (ADB) recent research indicates that the most of the developing member countries (DMCs) economies continue to grow at high rates that inequalities in standards of living are widening, and the poor are being bypassed by growth. Based on the reports of DMCs, the Key Indicators (ADB 2008) provides evidence that absolute inequality has increased in many countries in Asia and that the rich have grown richer faster than the poor. How can this problem be addressed? One way is to improve the labour market opportunities for workers since employment is the major vehicle of the poor to rise out of poverty. To cope with poverty, the poor take on informal employment, such as subsistence informal jobs, secondary jobs, and occasional jobs. This type of labour arrangement has grown in many DMCs, making the informal sector a major component of the economy. It is from ADB report that the prevalence of informal employment and social protection issues can be ascertained, the share of informal sector can be properly reflected in the GDP, and the relationship between poverty and the informal sector can be thoroughly examined. At present 10% of India’s over 470 million workforce is in the informal sector. India’s informal worker doesn’t have the privileges – likes social security and work place benefits. Situation is more or less same in other two neighbouring countries of India. In Bangladesh more than 80% of the workers in all divisions are engaged in informal jobs. According to 15th ICLS (International Conference of Labour Statisticians) in Srilanka the contribution of informal employment to the total employment is about 60.8%.The present paper is to focus on the comparative analysis of the informality, poverty, gender discrimination, livelihoods, and the nature and pattern of employment in the informal sector of these three Asian countries, viz., Bangladesh and Sri Lanka with India. On the basis of secondary data this paper made an attempt to analyse the changing scenario of economic growth and development in these countries and strategies to move out informality.

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