JAWAHARLAL NEHRU FINE ARTS AND

ARCHITECTURE UNIVERSITY.
DEPARTMENT OF URBAN AND REGIONAL PLANNING

SUBJECT: PLANNING FOR INFORMAL SECTOR

TOPIC:EXISTING MANAGEMENT AND THEIR
ORGANIZATIONAL SETUP

SUBMITTED TO:
Tuhina mam SUBMITTED BY:
K.SAIREESHMA
17011BA016
B.PLAN,4TH SEM
CONTENTS:
• INTRODUCTION
• EXISTING MANAGEMENT
• ORGANIZATIONAL SETUP
• LEVEL OF HIERARCHY
• ROLE OF URBAN LOCAL BODIES
• CASE STUDY
INTRODUCTION:
 Enterprises typically operating on a small scale with a low level of organization, low and uncertain
wages, and no social welfare and security."

 The informal sector of the economy, or grey economy is the part of an economy that is neither taxed nor
monitored by any form of government. Unlike the formal economy, activities of the informal economy
are not included in a country’s  gross national product (GNP) or gross domestic product(GDP)

 Other concepts that can be characterized as informal sector can include the black market.

 This sector includes situations where people must work without receiving any pay. It also includes sectors
in which individuals work and in exchange receive something other than money.
Existing management of informal sector
• According to ILO India Labour Market Update (2016) and NSSO data (2011-12), more than 90 percent of the

employment in the agricultural sector and close to 70 percent in the non-agricultural sector falls under the

informal category.

• The informal sector is commonly thought of as a site of low-skilled or unskilled work. The National

Commission on Enterprises in the Unorganized Sector (NCEUS) took the position that the vast majority of the

informal workforce is unskilled.

• At present, only 10% of India’s over 470 million workforces is in the formal sector. In other words, 90% of

India’s workers do not have the privileges—like social security and workplace benefits
It is estimated by NSSO that 84.7% of jobs in the Indian economy are in the informal or unorganized sector.

Of this, excluding agriculture, the leading contributors of informal employment are manufacturing,

construction and trade.

• At present, only 10% of India’s over 470 million workforces is in the formal sector. In other words, 90% of

India’s workers do not have the privileges—like social security and workplace benefits

• It is estimated by NSSO that 84.7% of jobs in the Indian economy are in the informal or unorganized sector.

Of this, excluding agriculture, the leading contributors of informal employment are manufacturing,

construction and trade.

Organizational set up
• An organizational structure is defined as “a system used to define a hierarchy within an organization. It
identifies each job, its function and where it reports to within the organization.” A structure is then
developed to establish how the organization operates to execute its goals Organizational setup for
informal sector in India

INFORMAL SECTOR

CENTRAL LEVEL

STATE LEVEL

LOCAL LEVEL
LEVELOF HIERARCHY IN INFORMAL SECTOR

CENTRAL LEVEL
MOUD
*Ministry of micro,

STATE LEVEL
small and medium STATE URBAN
enterprises DEVELOPMENT

LOCAL LEVEL
*Ministry of labour *Ministry of health URBAN LOCAL
and employment and family welfare BODIES(ULB)
*Ministry of women *ministry of labour *Urban planning
and child and employment including town
development planning
*Ministry of
*Ministry of health housing and urban *Planning for
and family welfare poverty alleviation economic and social
development
*Ministry of housing *ministry of
and urban poverty industries *Urban poverty
alleviation handlooms and alleviation
textiles
Role of urban local bodies in urban areas
 Indicates that the Act has taken care of a wide variety of
subjects and areas where municipal planning and services
will be needed in future. It preserves the existing structure of
urban local bodies and has further provided for un functional
local institutions for experimentation in big cities.
 (1) Municipal Corporation

(2) Municipality

(3) Notified Area Committee

(4) Town Area Committee

(5) Cantonment Board

(6) Township

(7) Port Trust

(8) Special Purpose Agency

CASE STUDY: (NEW DELHI)

 Govt Plans New Social Security Scheme to Cover Workers in Unorganized Sector

• The Ministry of Labour and Employment is preparing a draft on a new social security scheme that

would particularly focus on the informal sector and workers who are not covered by EPFO or ESIC

schemes.

• An Indian express report has stated that the Centre is consulting with the state governments seeking

financial partnership in conceiving this mammoth project. The government is aiming at launching the

project by the end of 2018, in the run-up to the 2019 LokSabha elections.
• The Indian Express report quoted a senior labour ministry official as saying.the official further

elaborated that some states already have a number of schemes in place that provide pension,

insurance and maternity benefits to its people. “A pool of money is available already but we need to

work out how much extra is required,” the official added

• An estimated 83% of employed persons work in the unorganized sector. According to a survey

conducted by the National Sample Survey Organisation (NSSO), about 39.14 crore of the 47.41 crore

who took the survey were employed in the unorganized sector. This significant part of the population

who do not have any social security cover, will be the main target of this new scheme.
 NK YOU
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