With the increase in urban migration and decrease in formal sector, street vending have risen
2.1. THEORETICAL FRAMEWORK
as one of the basic means of earning a livelihood for the urban poor in India. Street vendors
are broadly defined as persons who offer goods and services for sale without having a
.permanent built-up structure but with a temporary structure or mobile stall. They are called by
different names in different parts of India such as hawker, pheriwalla, rehri-patri walla,
footpath dukandars, sidewalk traders, etc. Poverty and lack of beneficial work in the rural
areas and in the smaller towns drive large numbers of people to the urban areas for work and
vocation. These individuals, for the most part have low skills and lack the level of education
required for the better paid jobs. Furthermore, permanent protected jobs in the organized
sector are shrinking, hence even those having the necessary skills are unable to find legitimate
work. For these people work in the informal sector are the only means for their survival. This
has prompted a quick growth of the informal sector in most of the larger cities.
INFORMAL SECTOR IN INDIA
The number of street vendors in Indian cities has increased sharply during the past few years,
especially after 1991 when the policies relating to structural adjustment and liberation were
introduced. According to the study conducted by Sharit K Bhowmik (2000) Mumbai has the
.
largest number of street vendors that is 2,50,000. Kolkata has more than 1,50,000 street
vendors. Ahmedabad and Patna have around 80,000 each and Indore, Bangalore and
Bhubaneshwar have around 30,000 street vendors. Studies on street vendors are few and are
focused mainly on some cities.
INTRODUCTION
INFORMAL SECTOR IN LUDHIANA
Ludhiana is one of the largest cities in Punjab having population of 1,618,879 as per 2011
census. It is divided into four zones and according to the Municipal cooperation, a total of
21,725 street vendors have been identified in the city, of which 5,925 in Zone A, 5,377 in
Zone B, 3,654 in Zone C and 6,769 in Zone D. In Ludhiana, there is presence of informal
. sector along major roads and markets hindering smooth flow of traffic in many areas of the
city. The informal sector is dealing with the daily needs goods like fruits, vegetables and
clothes. It occupies half of the road in this area causing traffic blockage due to reduction of
effective road width. The situation turns worse during peak hours when traffic increases for a
long time. The informal sector is facing problems due to lack of infrastructure such as water
supply,sanitation etc. Problems are not only faced by vendors also the buyers are facing
problems like parking and poor hygiene.
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Session: 2019-20
Guru Ram Das School of Planning
Guru Nanak Dev University, Amritsar
 2.1. THEORETICAL FRAMEWORK
Scope: INTRODUCTION
The scope of the study divided into three parts which are as follows: AIM
Theoretical framework : Definition, Characteristics, Importance and drawbaks of informal To give proper planning strategies for informal sector by which the workers of informal
sector,
. Case studies, Legal Framework. sector carried out their business to sell goods informally without any hindrances by the users,
Informal sector Analysis: providers and provide proper vending zones, where it cannot create any problem further in the
Work Characteristics: Identification of the nature of informal activities the vendors are traffic movement of the city and overcrowding in the parking areas.
involved in and the characteristics of the work.
.
Infrastructure problems: Identification of the infrastructure problems existing in the informal
commercial areas.
Legal Problems: Identifying the legal problems related to the informal commercial sector due
to government, police interventions.
Social Problems: Identifying the social problems faced by the street vendors caused by the
buyers, formal shop owners, police, government etc.
Encroachments: Identifying the encroachment areas in the city by informal vendors.
Traffic problems: Identifying the Traffic Problems created by informal commercial activities
in the study area.
.
Solid Waste: Identifying the problems of solid waste generated by the informal sector and its
management, sanitation, hygiene.
Findings and Proposals: Planning strategies and spatial plans.

B.Tech(URP) Group-B.Tech(URP) Sheet No

6TH Semester
Session: 2019-20

Guru Ram Das School of Planning

Guru Nanak Dev University, Amritsar
OBJECTIVES METHODOLOGY 2.1. THEORETICAL
INTRODUCTION
• To identify the location of informal sector in Ludhiana.
• To identify the issues and required provisions for the informal sector. • Introduction to
area
• To suggest planning strategies to improve the condition of the informal sector. INTRODUCTION • Need
• Definitions of • Scope
• To develop vending zones and new market avenues wherever possible informal sector • Objectives
• Characteristics of
informal sector
• Positive and negative
impacts THEORETICAL
• Case studies FRAMEWORK • Location
• Policies and • Nature of the
programmes activity
• Duration of
DATA
time
IDENTIFICATION • Encroachment
AND COLLECTION • Availabilities
of Facilities
• Parking REPORT
Facility

DATA COMPILATION
AND ANALYSIS

FINDINGS

PROPOSALS
AND
STRATEGIES

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Guru Ram Das School of Planning

Guru Nanak Dev University, Amritsar
 2.1. THEORETICAL FRAMEWORK
DEFINITIONS BEST PRACTICES
According to the International Labour Organization (ILO):
The informal sector has been understood to mean a very small scale units producing and
.distributing goods and services and consisting largely on independent self employed

producers in urban and rural areas of developing countries, some of which also employ family
member and or few hired workers or apprentices which operate with very little capital or none
at all, which utilize a low level of technology and skills, which generally provides very low .
and irregular income and highly unstable employment to those who work in it.
According to the National Commission for Enterprises in the Unorganized Sector
(NCEUS):
Informal workers consists of those working in the informal sector or households, excluding
regular workers with social security benefits provided by the employers and the workers in the
formal sector without any employment and social security benefits provided by the employer.

B.Tech(URP) Sheet No
Session: 2019-20

Guru Ram Das School of Planning

Guru Nanak Dev University, Amritsar
 2.1. THEORETICAL FRAMEWORK
CHARACTERISTICS OF THE ACTIVITIES IN THE INFORMAL SECTOR THEORETICAL FRAMEWORK
•Unregulated and competitive markets
•Small scale operation with individual or family ownership
. •Ease of entry

•Reliance on locally available resources

•Family ownership of enterprises
•Labour intensive and adapted technology
•Absence of access to institutional credit or other supports and protections
Source THE URBAN INFORMAL SECTOR Critical Perspectives on Employment and
Housing Policies Edited by RAY BROMLEY
•POSITIVE ASPECTS OF INFORMAL SECTOR .

•Employment generation
• Functional shopping and convenience
•Economic need
•Supplement requirement
•Competition
.
•NEGATIVE ASPECTS OF INFORMAL SECTOR
•Traffic problem
•Nuisance
•Environmental
•Corruption
•Insecurity to resident

B.Tech(URP) Group-B.Tech(URP) Sheet No

6TH Semester
Session: 2019-20

Guru Ram Das School of Planning

Guru Nanak Dev University, Amritsar