Planners hoped that more and more workers would move into the formal…

After Independence, India chose planned development. Planners hoped that, as national output grew, more people would find a decent livelihood, and that more and more workers would move into the formal sector. To judge how far these hopes came true, economists study two developmental indicators over the years of planning: the growth of Gross Domestic Product (GDP) and the growth of employment. They also look at the industries in which people work and at the status with which they work.

Planners hoped that more and more workers would move into the formal sector. Which of the following workers is part of the informal sector?

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → A headload worker who works for more than one employer

The informal sector includes non-farm casual wage labourers who work for more than one employer, such as headload and construction workers.

Option (1) A teacher in a private school with 15 hired teachers — Incorrect. A private unit with 10 or more hired workers is formal.

Option (2) A clerk in a public sector bank — Incorrect. Every public sector establishment is formal.

Option (3) A driver in a private bus company with 20 hired workers — Incorrect. 20 hired workers is above the limit of 10, so it is formal.

Option (4) A headload worker who works for more than one employer — Correct. He is a casual worker with several employers.

NCERT (2026-27): “6.7 Informalisation of Indian Workforce … All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments and those who work in such establishments are formal sector workers. All other enterprises and workers working in those enterprises form the informal sector. Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self-employed who do not have any hired workers. It also includes all non-farm casual wage labourers who work for more than one employer such as construction workers and headload workers. …”