UNORGANIZED SECTOR

Even though the income levels in the country have doubled during the last seven years, there is a need to pay attention to the unorganized sector. Give arguments For and Against this view. Last few years have seen unprecedented increase in the per capita income, which as per one report, has doubled in the last seven-year period. This has happened mainly because of the high growth rate of the economy during this period, which has averaged around 8 per cent per annum. The services and manufacturing sectors have been booming and IT and automobile sectors in particular have done very well. As a result, incomes of the people employed in these sectors have increased manifold. While the growth was outstanding in the organized sector, the income levels in the unorganized sectors, including the economic activities in the primary sector, have been subdued. The growth rate of the agricultural sector has been less than half the average growth rate of the economy. It is felt by many that it is the time the government paid special attention to the plight of the unorganized sector as well. Arguments For the View (a) Agricultural sector is traditionally a low growth sector and unless special attention is paid by the government it may be difficult for the workers engaged in this sector to catch up with their counterparts in the industrial or services sectors. (b) While the government has introduced a programme called Jawaharlal Nehru National Urban Renewal Mission for upliftment of cities, no such programme is there specifically for the unorganized sector in the rural areas, which is a dire necessity at present. (c) Low growth of income in the unorganized sector has resulted in what is referred to as the digital divide in the Indian society. To bridge this gap and ensure that the fruits of high growth trickle down to all the sections, special attention must be paid to the unorganized sector. Arguments Against the View (a) The government has already introduced an ambitious programme called Bharat Nirman under which basic infrastructure is being created in the rural areas of the country. This would help the unorganized rural areas catch up with the urban and industrialized areas. (b) In a free market economy, there is no need for over-regulation. The high growth rate of the economy takes care of all the sections of the society over a period of time. (c) It is wrong to presume that the incomes have not risen in the unorganized sector. Since increase has been taking place, it would be better to leave this sector alone to grow in natural manner.