Labour informality forms a key structural element in the Indian economy and has significant implications for societal equity, labour's economic security and the employment situation. Despite decades of continuous economic growth, a significant percentage of the Indian population has not yet been included in the official structures of law and social protection programs. Informal employment hinders more general goals of inclusive and sustainable development, given its link with precarious labour arrangements, low productivity, economic precariousness, and lack of institutional protection. This study uses the social sustainability conceptual framework to critically examine the extent, antecedents and socioeconomic consequences of informality of labour in the Indian context. It argues that deep-rooted inequities related to gender, caste and regional disparities and structural dualism in the labour market have not been adequately addressed by mainstream, growth-oriented development paradigms. The study uses qualitative and analytical methodology to analyse the relationship between informal employment and social sustainability impacts such as income distribution, social protection coverage, and developmental indicators. Qualitative and descriptive form of analysis are used, based on secondary data, consisting of the Periodic Labour Force Survey, the National Sample Survey, and the relevant foreign policy documentation. The findings suggest that informality is a systemic characteristic that is embedded within institutional and economic processes and is not a transient phenomenon. The study calls for changing the developmental trajectories to include gender-inclusive employment policies, universal social protection floors, skill development and labour formalization as basic pillars of sustainable growth. To accomplish equality, resilience and sustainable socio-economic development in India, it is important to align macroeconomic growth with the principles of decent work.
Lal et al. (Thu,) studied this question.