ISSN 2394-5125
 

Research Article 


Impact of Recent Economic Slowdown on Informal Sector in India

Dr. M. Ramesh, TeluSuvarna, Dr.S. Sudha, Dr.E. Rajarethinam, Dr.S.N. Sugumar.

Abstract
India has a vast informal sector, the largest in the world, employing close to 90% of its working population and contributing more than 45% to its overall GDP. This sector was hit by two consecutive shocks in a short span of time, from 2016 to 2019. The first shock was Demonetisation in November 2016 when 86% of the money in the economy became unusable overnight owing to a government decree, followed by the haphazard introduction of the Goods and Services tax in 2017. While demonetisation was a big enough monetary shock, it did not fundamentally disrupt demand and supply mechanisms for too long. There was a temporary lack of means of payment. In the case of the current crisis, the demand is not there, the supply is not there, and hence the underlying revenues are not there. This is therefore much more problematic. With the Covid-19 outbreak, the already struggling informal sector will be disproportionately affected. India has a very high share of informal employment in total employment. Daily wage labourers and other informal workers will be the worst hit during the lockdown period and will continue to be adversely affected even when the lockdown is relaxed. With almost no economic activity particularly in urban areas, the lockdown has led to large scale losses of jobs and incomes for these workers.

Key words: Informal Sector, Migrant Workers, Demonetarization, Lockdown, Covid-19


 
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How to Cite this Article
Pubmed Style

Dr. M. Ramesh, TeluSuvarna, Dr.S. Sudha, Dr.E. Rajarethinam, Dr.S.N. Sugumar. Impact of Recent Economic Slowdown on Informal Sector in India. JCR. 2020; 7(16): 2330-2333. doi:10.31838/jcr.07.16.294


Web Style

Dr. M. Ramesh, TeluSuvarna, Dr.S. Sudha, Dr.E. Rajarethinam, Dr.S.N. Sugumar. Impact of Recent Economic Slowdown on Informal Sector in India. http://www.jcreview.com/?mno=100326 [Access: May 31, 2021]. doi:10.31838/jcr.07.16.294


AMA (American Medical Association) Style

Dr. M. Ramesh, TeluSuvarna, Dr.S. Sudha, Dr.E. Rajarethinam, Dr.S.N. Sugumar. Impact of Recent Economic Slowdown on Informal Sector in India. JCR. 2020; 7(16): 2330-2333. doi:10.31838/jcr.07.16.294



Vancouver/ICMJE Style

Dr. M. Ramesh, TeluSuvarna, Dr.S. Sudha, Dr.E. Rajarethinam, Dr.S.N. Sugumar. Impact of Recent Economic Slowdown on Informal Sector in India. JCR. (2020), [cited May 31, 2021]; 7(16): 2330-2333. doi:10.31838/jcr.07.16.294



Harvard Style

Dr. M. Ramesh, TeluSuvarna, Dr.S. Sudha, Dr.E. Rajarethinam, Dr.S.N. Sugumar (2020) Impact of Recent Economic Slowdown on Informal Sector in India. JCR, 7 (16), 2330-2333. doi:10.31838/jcr.07.16.294



Turabian Style

Dr. M. Ramesh, TeluSuvarna, Dr.S. Sudha, Dr.E. Rajarethinam, Dr.S.N. Sugumar. 2020. Impact of Recent Economic Slowdown on Informal Sector in India. Journal of Critical Reviews, 7 (16), 2330-2333. doi:10.31838/jcr.07.16.294



Chicago Style

Dr. M. Ramesh, TeluSuvarna, Dr.S. Sudha, Dr.E. Rajarethinam, Dr.S.N. Sugumar. "Impact of Recent Economic Slowdown on Informal Sector in India." Journal of Critical Reviews 7 (2020), 2330-2333. doi:10.31838/jcr.07.16.294



MLA (The Modern Language Association) Style

Dr. M. Ramesh, TeluSuvarna, Dr.S. Sudha, Dr.E. Rajarethinam, Dr.S.N. Sugumar. "Impact of Recent Economic Slowdown on Informal Sector in India." Journal of Critical Reviews 7.16 (2020), 2330-2333. Print. doi:10.31838/jcr.07.16.294



APA (American Psychological Association) Style

Dr. M. Ramesh, TeluSuvarna, Dr.S. Sudha, Dr.E. Rajarethinam, Dr.S.N. Sugumar (2020) Impact of Recent Economic Slowdown on Informal Sector in India. Journal of Critical Reviews, 7 (16), 2330-2333. doi:10.31838/jcr.07.16.294