Economics project

Purpose: The purpose of our project is to gain a comprehensive understanding of the

informal sector's role, challenges, and impact on the economy, as well as the
perspectives and preferences of individuals towards formalization, regulation, and
social protection.

Objectives: after conducting survey and getting 130 responess we concluded the
following as our objective
1. Investigate the main sources of credit and factors influencing credit access
within the informal sector.
2.Understand how the informal sector impacts the overall economy, considering
both positive and negative effects.
3. Explore possible ways to improve the informal sector and enhance its
contribution to economic growth and development.

Qs;

1.In your opinion, the informal sector:

a) Should be completely eliminated for a more formalized economy

b) Plays a crucial role in providing livelihood opportunities for many people

c) Has no significant impact on the overall economy

d) Creates unfair competition for formal sector businesses

2.How important do you think it is for governments to support and regulate the
informal sector?

a) Not important at all; the informal sector should be left entirely unregulated

b) Somewhat important; minimal regulation is necessary for basic standards

c) Very important; comprehensive support and regulation are essential

d) Not important; the informal sector should be entirely formalized

3.In your opinion, formalizing the informal sector:

a) Is essential for improved working conditions and worker protection

b) Restricts entrepreneurial freedom and stifles innovation

c) Has no significant benefits and is a waste of resources

d) Should be done selectively, targeting specific industries or sectors

4.How important do you think it is for informal sector workers to have access to
social protection benefits?

a) Not important; informal sector workers should solely rely on their own resources

b) Somewhat important; minimal social protection can be provided

c) Very important; comprehensive social protection should be extended to informal

sector workers

d) Not important; the informal sector should be encouraged to rely on informal

support systems

5. Will you take a loan from your relative for a high interest rate for 10 years

a) yes

b) no

c) probably

d) not applicable

6.On what basis do you think credits are given in the informal sector?

a. trust

b. exchange of labour

c. honesty

d. investment
7.What is the main informal source of credit for rural households in India

a. SHG (self help group)

b. Money lenders

c. Banks

d. Relatives

8.How does informal sector affect the economy?

a. low productivity

b. limited access to finance.

c. neither of them

d. both of them

9. How can we improve the informal sector?

a. Provide training and support for informal workers

b. negotiation

c. self-organisation

d. all of them

10.Would you rather take a loan from an informal sector with a high interest rate or a
formal sector with a high interest rate ?

A) informal

B) formal

C) I wouldn’t take loans

D) depends on the situation

11. If the government and the informal sector merge what do you think will be the
end result ?

A) loans with reasonable interest rate

B) loans with a much higher interest rate for personal profit

C) no change

D) all of the above

Haripriya:

1.In your opinion, the informal sector:

Purpose: This question aims to gauge respondents' perceptions of the informal

sector and understand their general attitude towards it.

Objective: we determined how individuals view the role and importance of the
informal sector in the economy and its impact on formal sector businesses.

2.How important do you think it is for governments to support and regulate the
informal sector?

Purpose: The question seeks to assess the level of support for government
intervention and regulation in the informal sector.

Objective: we understood respondents' perspectives on the role of government in

providing support and establishing regulations to improve conditions within the
informal sector.

Srithanyaa:

3.In your opinion, formalizing the informal sector:

Purpose: The question aims to gather opinions on the idea of formalizing the
informal sector.

Objective: we got to explore respondents' views on the potential benefits and

drawbacks of transitioning informal sector activities into the formal economy.
4. How important do you think it is for informal sector workers to have access to
social protection benefits

Purpose: The question intends to assess the perceived need for social protection
for informal sector workers.

Objective: we gauged respondents' views on the importance of providing social

protection benefits, such as healthcare, pensions, and other forms of support, to
those working in the informal sector.

Mantra:

5. Will you take a loan from your relative for a high-interest rate for 10 years
Objective: we found out that no one would take a loan from their relatives

6.On what basis do you think credits are given in the informal sector? Purpose:
The question aims to understand the factors that influence credit access in
the informal sector.
Objective: it helped us to identify the criteria or principles upon which informal
sector entities, such as money lenders or individuals, provide credit to others.

Srivatsan:

7.What is the main informal source of credit for rural households in India?

Purpose: The question seeks to determine the primary source of credit for rural
households in India specifically.

Objective: we assessed the most prevalent channels through which rural

households in India access credit within the informal sector.

How does the informal sector affect the economy?

Purpose: The question aims to explore the perceived impact of the informal sector
on the overall economy.

Objective: we understood respondents' views on how the informal sector may

influence economic factors like productivity and access to finance.

Thaneesha;
9.How can we improve the informal sector?

Purpose: The question seeks suggestions for enhancing the informal sector's
functioning and potential contributions.

Objective: we gathered insights on potential strategies for boosting the informal

sector's productivity, efficiency, and overall positive impact on society.

10.If the government and the informal sector merge, what do you think will be the
end result?

Purpose: The question explored potential outcomes if the government and the
informal sector were to combine forces.

Objective: gained insights into respondents' expectations about the consequences of

such a merger, including its possible effects on loan interest rates.

Conclusion: therefore, The informal sector is recognized as playing a crucial role in

providing livelihood opportunities for many people and is not perceived as having no
significant impact on the overall economy.

Thank you