Sectors of the Indian Economy

Quickly browse through questions and notes on related topics. You can also download and read this topic offline.

• Questions
• Summary

Organised Sector:

1. The organized sector covers those enterprises or places of work where the terms of employment are regular and therefore, people have assured work.
2. It is called organized because it has some formal processes and procedures.
3. They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act.
4. Workers in the organised sector enjoy security of employment.
5. They get various benefits like: paid leave, provident fund, gratuity etc.

Unorganised Sector:

1. Unorganised sector covers small and scattered units which are largely outside the control of the government.
2. There are rules and regulations but they are generally not being implemented by the unorganised sector.
3. Employment is not secure, Jobs here are low-paid and often not regular.
4. No provision for overtime, paid leave, holidays etc.

How to Protect Workers in the Unorganized Sector?:

1. There is a need for protection and support of the workers in the unorganised sector.
2. Nearly 80 per cent of rural households in India are in small and marginal farmer category. These farmers need to be supported through adequate facility for timely delivery of seeds, agricultural inputs, credit, storage facilities and marketing outlets.
3. In the urban areas, unorganised sector comprises mainly of workers in small-scale industry, casual workers in construction, trade and transport etc. Small-scale industry also needs government’s support for procuring raw material and marketing of output. The casual workers in both rural and urban areas need to be protected.
4. Protection and support to the unorganised sector workers is necessary for both economic and social development.