Most of India’s workforce is in the informal sector. Three of the following workers belong to the informal sector. Pick the odd one out.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → A worker in a private factory with 15 hired workers
A private establishment with 10 or more hired workers is in the formal sector. A factory with 15 hired workers crosses this line, so its worker is a formal sector worker.
The other three are informal. The informal sector takes in agricultural labourers, the self-employed with no hired worker, and non-farm casual workers who work for more than one employer, such as headload workers.
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. …” |