IMPACT OF DEMONETISATION ON UNORGANISED SECTORS OF INDIA: AN OVERVIEW

ABSTRACT

The unorganised sectors  occupy a very significant position in the Indian economy. It is considered as the wheel of the Indian economy as it provides livelihood and employment opportunities to a large chunk of individuals. According to estimation in India, nine out of ten workforces engage in unorganised sectors . According to the statistics of the International Labour Organization over 90 per cent of the entire workforce in India is engaged in the informal sector (defined as those without any social insurance) . These statistics indicate the importance of unorganised sector in the Indian economy. Without the unorganised sectors Indian economy cannot be imagined. This unorganised sector has faced a serious challenge due to the unplanned and abrupt demonetisation announced by the union government. Due to demonetization there was unprecedented job loss and wage decline in the unorganised sector .  Besides, as a result of demonetization there is a decrease in the GDP and the withdrawal of the highest currency note reduced the growth rate. It also reduces consumption patterns, income, and investment. The present paper argues that demonetisation has a direct impact on the unorganised sector vis-à-vis the Indian economy. Hence, this paper is an attempt to critically understand the impact of demonetisation in the unorganised sector. This paper is based on both primary and secondary sources of data.  The primary sources of data have been collected through a field study in Guwahati city during the demonetisation.

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