Which of the following statements about formal sector workers in India are correct?
(A) They form only a small section of the Indian workforce.
(B) They form trade unions and bargain with employers for better wages.
(C) They enjoy social security benefits.
(D) They include self-employed persons who do not have any hired workers.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
Formal sector workers are a small, protected section of the workforce. Statement (D) describes informal workers.
(A) They form only a small section of the Indian workforce. — Correct. Only a small section gets regular income and the protection of labour laws.
(B) They form trade unions and bargain with employers for better wages. — Correct. They also bargain for social security measures.
(C) They enjoy social security benefits. — Correct. They also earn more than informal workers.
(D) They include self-employed persons who do not have any hired workers. — Incorrect. The self-employed without hired workers belong to the informal sector.
NCERT (2026-27): “6.7 Informalisation of Indian Workforce … You may find that a small section of Indian workforce is getting regular income. The government, through its labour laws, enable them to protect their rights in various ways. This section of the workforce forms trade unions, bargains with employers for better wages and other social security measures. … To know this we classify workforce into two categories: workers in formal and informal sectors, which are also referred to as organised and unorganised sectors. 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. …” “6.7 Informalisation of Indian Workforce … Those who are working in the formal sector enjoy social security benefits. They earn more than those in the informal sector. …” |