Topic Details (Notes format)

Informal Sector Challenges and Formalization

Subject: Economics

Book: Comprehensive Indian Economy - Additional Topics

An estimated 80-90% of India’s workforce remains in the informal sector, lacking social security and stable wages. Measures like GST compliance, Jan Dhan accounts, and labour code reforms aim to reduce informality. However, low financial literacy, bureaucratic complexities, and tax aversion impede the transition. Exam queries might explore how digital payment footprints or skill upgrades can formalize small enterprises, while balancing the need for simplified regulations to sustain micro-entrepreneurs.

Practice Questions

Which organization is responsible for estimating India’s Gross Domestic Product (GDP)?

View Question

What is the meaning of “supply-side economics”?

View Question

What is “quantitative easing”?

View Question

What is the meaning of "fiscal deficit"?

View Question

What does the term “elasticity of demand” measure?

View Question

What is the term for the ability of an economy to produce more output from the same inputs?

View Question

What is the Phillips Curve?

View Question

What is the primary goal of a progressive tax system?

View Question

What does the term “capital account” refer to in the balance of payments?

View Question

Which of the following is a feature of monopolistic competition?

View Question