Q.3 Despite efforts at formalisation, the challenge of informality looms large for India. Examine the reasons for persistent informality and suggest the way forward. (10 Marks)

Mentor’s comment-
  • thehindu.com/opinion/op-ed/indias-economy-and-the-challenge-of-informality/article38335803.ece
  • In the intro, mention that despite witnessing rapid economic growth over the last two decades, 90% of workers in India have remained informally employed, producing about half of GDP.
  • In the body, mention the reasons for informality such as excessive state regulation of enterprises and labour, also mention that political and economic reasons operating at regional level, lack of adequate growth etc. In suggestions mention that along with current efforts what is needed is a greater capital investment and increased education and skills are imparted to its workers.
  • Conclude by mentioning the need to focus on formalisation from a perspective other than a fiscal perspective.
Newest Most Voted
Inline Feedbacks
View all comments
project _osiris
project _osiris
3 months ago


a kesri
a kesri
3 months ago

Question 3