In India, where the informal labour market ratio is still around 0.90, this study investigates the connection between urban expansion and the continuation of informal employment. It examines migration patterns and spatial inequality using an interdisciplinary lens that combines economics and human geography. The study makes use of secondary data from the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2021-2024, the Periodic Labour Force Survey (PLFS) 2017-2024, and Census projections. The socioeconomic factors influencing absorption into the informal sector are identified using a probit regression model. According to the analysis, there is a "feeder economy" in which the formal sector uses an informal labour force to expand. The findings indicate that while the informal sector has stagnated at 2% growth, the national GDP has grown at a rate of 7%. Formal absorption is primarily determined by educational completion; illiteracy raises the likelihood of informal The likelihood of informal employment rises to a 0.79 ratio with illiteracy. The study concludes with suggestions for regional planning and increased social protections after exposing "top-heavy" urbanization patterns and gendered commuting conflicts.
Mr. Patare Shubham Arun (Wed,) studied this question.