Which of the following statements about the informal sector are NOT true?
(A) Informal sector enterprises use modern technology and compete well in domestic and international markets.
(B) Informal sector enterprises maintain proper records and accounts.
(C) Workers in the informal sector get regular income and social security benefits.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A), (B) and (C)
Informal sector workers and enterprises get no regular income and no protection from the government.
(A) Informal sector enterprises use modern technology and compete well in domestic and international markets. — False. The technology used in informal sector enterprises is outdated.
(B) Informal sector enterprises maintain proper records and accounts. — False. They do not maintain any accounts.
(C) Workers in the informal sector get regular income and social security benefits. — False. They get no regular income, and workers can be dismissed without any compensation. Social security goes with the formal sector.
NCERT (2026-27): “6.7 Informalisation of Indian Workforce … Since the late 1970s, many developing countries, including India, started paying attention to enterprises and workers in the informal sector as employment in the formal sector is not growing. Workers and enterprises in the informal sector do not get regular income; they do not have any protection or regulation from the government. Workers are dismissed without any compensation. Technology used in the informal sector enterprises is outdated; they also do not maintain any accounts. …” |