Making a case for creating more formal jobs, the World Bank in its draft World Development Report 2019 said in India the pay-offs in the formal sector are over twice as much as in the informal sector, which is among the largest in the world.
The Bank said regardless of how work may be changing, for low and middle-income countries, it is persistent informality and low-productivity employment that poses the greatest challenge.
“Since 1999, India has seen its IT sector boom, become a nuclear power, broken the world record for the number of satellites launched in a single rocket and achieved an annual growth rate of 5.6%. Yet, the size of its informal sector has remained around 91%,” the World Bank said.
In another draft report titled Systematic Country Diagnostic (SCD) for India released in February, the World Bank said India needs to create regular, salaried jobs with growing earnings rather than self-employed ones, in order to join the ranks of the global middle class by 2047—the centenary of its independence.
Source: Live Mint