WOMEN IN THE UNORGANIZED SECTORS IN INDIA

Introduction

India a country where almost every worshipped thing is given a feminine consideration whether it is the holy river Ganga, or whether it is the god of food (Anna), i.e. “Annapurna”, is dealing with approx. 11.8 crore women[1] suffering in the unorganized sectors within the Indian territory. As per the economic survey done in 2021-22, around 43.99 crore people were working in unorganized sectors till 2019-2020.[2] Although the country is moving towards globalization the issue of unorganized sectors is an essential topic to be discussed. Almost 97% of the women workforce are involved in the unorganized sectors, majorly in agriculture.

Unorganized Sector:

To understand the need for the eradication of the unorganized sector for women, we need to understand the intricacies of the Unorganized sector. The unorganized sector includes a wide range of work, from domestic or local work to working in small companies dealing with some manufacturing. ‘Delving into the specifics of employment share the unorganised sector employs 83% of the workforce, while the organised sector employs the balance of 17%. There are 92.4% of workers amongst these who do not have formal written contracts (including paid leave and other benefits) or who are regarded as informal workers. There are also 9.8% of informal workers in the organised sectors showing the degree of subcontracting. These are probably the contractual workers.’[3] Therefore this sector holds the majority of the workforce of India. Although, the kind of work that is done by such workers is very crucial but still the way such essential workers are treated is a remorse to watch.

Then comes in the picture the role of women in such sector:

  • The women involved in the unorganized sector, enter in the works such as Domestic household workers, Street vendors, Agricultural workers, etc.
  • The work of such kind involves there long hours of labour and an almost negligible amount of recognition and pay.
  • As street vendors, domestic household workers, etc, these women are many times subjected to harassment and demeaning behaviour.

Despite their importance, women in the unorganized sectors face several challenges that include a Lack of Job Security as informal jobs provide little to no job security. Workers can be easily dismissed without notice and have no recourse for grievances. Low Wages are another factor affecting the women in unorganized sectors than their male counterparts, often with no benefits like health insurance or maternity leave. This economic disparity perpetuates cycles of poverty. Social Stigma and Discrimination is through which women may face societal stigma for engaging in certain types of work, particularly in traditional cultures, which can lead to isolation and limited opportunities for advancement. There is an imposed threat to their health by working in such harsh conditions, for example, working in the sanitation of public toilets during their pregnancy as they are more vulnerable to diseases at that time when they don’t even get maternity leave. Majorly women who do not have access to appropriate resources to up-skill themselves and have a better economic opportunity fall in the ditch of unorganized sectors. Certain roles, especially in domestic work, expose women to various forms of abuse and exploitation as well as complicating their quest for safety and dignity.

women empowerment

Suggestive Policies:

It is imperative and urgent that policy formulation and interventions target the plight of female workers in India’s unorganized sector. Another response relates to a number of measures that should be taken to facilitate the incorporation of the socio-economic context, legal dimension and social security into the daily reality for women of these townships. The following policy recommendations should therefore help towards removing the existing barriers for women workers operating in the informal sector.

  • First, and foremost, an analysis of the report on the implementation challenges of broader policies of social security coverage should be conducted. In addition, universal health insurance coverage shall be made which specifically responds to the healthcare needs of women with special emphasis on maternal healthcare coverage. There should be a system of benefits portability that is created so that employees do not lose their benefits when they shift employers. Furthermore, more such schemes should be available to the workers so that the retirement age and the age requirement for availing pension schemes are reduced as most of the workers from the unorganised sector work in physically strenuous jobs. Regular health camps and mobile health units should be integrated into these social security programs for those who work in remote regions.
  • Financial inclusion is an area that needs urgent action. Banks must make it easier to open accounts by relaxing their KYC rules. They should also offer special loans with lower interest for women running businesses. Mobile banking services should expand in rural areas and should be paired with detailed financial education programs in local dialects. The government needs to set up systems that protect wages, including ways to pay digitally for clarity in wage payments, and ensure laws for equal pay are strictly followed.
  • Skill growth and education are keys to lasting empowerment. Policies should aim to create job-specific training programs that address the unique problems women workers face. These should include lessons on digital skills, building businesses, and improving technical skills. To make these accessible, training centres must have childcare support, and learning times should be flexible to suit different schedules. Additionally, providing stipends during training can lessen the loss of income when attending such programs.
  • Important legal and administrative changes are needed to safeguard women’s work rights. This involves making labour laws stronger for the unorganized sector and setting up quick-response courts for labour issues. Legal aid offices should be established for women workers specifically, offering free or inexpensive legal help. Domestic work must be officially recognized as employment, with strong measures against workplace harassment. Administrative steps should introduce a one-stop system for accessing government services and a simpler registration process for informal workers.
  • Developing infrastructure is key to bettering work conditions. The conditioning of the infrastructure should be such that it provides a clean and healthy surrounding to work in by providing proper washrooms, rest areas, and a place for childcare for the women workers. The use of technology should be done in an appropriate manner by holding awareness camps for such workers so that they can make the best use of the Government programs that are made for their help.
  • Implementing these plans needs a laid-out plan with set timelines and duties. The main issue with the laws for the unorganized sector is its implementation, therefore right now, the focus should be on making a detailed list or data of women workers and setting up a universal ID system. The short-term goals should cover making policies for specific sectors and starting training centres. Long-term goals should strive for full social security and full financial inclusion which includes their post-retirement plans as well. Monitoring and assessment tools should be included in these plans from the beginning for keeping regular checks, impact studies, and feedback from those affected should lead to needed changes. A set budget combined with collaborations both from the public and private sectors, as well as Corporate Social Responsibility (CSR) funding can ensure such initiatives are funded in the long run.
  • Success in carrying out these plans relies a lot on teamwork between different groups, such as the central and state governments, local groups, NGOs, and businesses.

Regularly reviewing and updating plans based on actual conditions will ensure they work well and last. The main aim is to build a helpful system that sees and appreciates the work of women in the informal sector while keeping their respect, safety, and financial growth secure. The policies should cover the need of awareness amongst the public to make a more inclusive society to not let the important work of such workers go in vain by not respecting them. These policy initiatives, correctly undertaken, will begin to affect the lives of lakhs of women in India’s informal sector. Short-term stop-gaps must be replaced by sustainable, long-term solutions, and the poor and vulnerable sections of the workforce should not miss out on such support. Only through such comprehensive policy initiatives will we be able to make strides towards earnest empowerment and better working environments for women in the informal economy.

Conclusion:

In order to tackle or counter the real issues that are faced by these women, the need for stringent implementation is there. As not only the religious and political spheres are important in India but also to take into consideration the 11.8 Crore women who are working in unorganized sectors to keep the other whole population healthy and sound are important and their dignity, safety and health is important. We must move the focus from quick fixes to lasting changes that truly better the lives of these women workers. It’s only by sticking to these broad plans, checking progress often, and adjusting based on what happens on the ground, that we can hope to make the world work fairer and more respectful for women in India’s unorganized sector. The real check of India’s growth won’t just be in money terms; it will be seen in how well it can guard and boost its weakest workers, especially the many women who hold up its informal sector. Their strength is not just needed for the economy but is a key move toward fair treatment and gender balance in Indian life.

Author: SATYANSHU SHUKLA, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at Khurana & Khurana, Advocates and IP Attorney.

[1] International Conference on Studies in Humanities and Social Sciences (ICSHSS’15 ) July 29-30, 2015 Phuket (Thailand) (2015).

[2] Number of Workers in Unorganised Sector, https://pib.gov.in/pib.gov.in/Pressreleaseshare.aspx?PRID=1942079 (last visited Nov 9, 2024).

[3] Session II: Traditional Estimation Practices: Determining the Level and Growth of the Informal Economy

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