Sectors of the Indian Economy — Question 17

Yes, I agree that workers are exploited in the unorganised sector. The unorganized labour sector in India faces several challenges, leading to exploitation of workers. Following are the reasons :

• Many unorganised labourers work on a daily wage basis, with no guarantee of consistent employment.
• Earnings in the informal sector are typically lower than those in the formal sector. This income disparity often leaves unorganized labourers struggling to make ends meet, contributing to persistent poverty and income inequality.
• Workers in the unorganized sector typically lack legal protections such as minimum wages, social security benefits, and regulated working hours. This absence leaves them vulnerable to exploitation by employers who may pay below minimum wage or ignore safety standards.