Nobel laureate Amartya Sen lauded the UPA government's efforts at attacking the basic assumptions of the Indian economy, by re-examining the economic policies governing the unorganised sector.
Sen was of the opinion that the Employment Guarantee Act in Parliament needed modifications, but did not substantiate what kind of intervention will be required.
Delivery mechanisms, poor quality of labour, illiteracy have to be addressed within existing dispensation, he said after his meeting with the National Commission on Enterprises in the Unorganised and the Informal sector, headed by Arjun Sengupta.
The meeting explored the concept of having growth poles for the informal sector in the form of clusters and hubs where external economies need to be provided for employment generation and improving productivity.
Social security and welfare funds for workers in the informal sector was discussed which were both promotional and protective, said Sengupta.
Skill formation in the informal sector and the potential for public-private partnership in the provision of the required skills will be addressed by the commission, said Sengupta. The commission is also working at improving the institutional framework for the provision of microfinance in the sector.
Sen was of the view economic policies suggested by the commission should first be implemented in the clusters before their universal application. The emphasis of the discussion was to integrate the unorganised sector with the mainstream economy, he said.
Sengupta said the commission is working on papers and has circulated across the ministries of commerce, small scale and agro and rural industries, information technology, rural development, labour.
The meeting was attended by members including Bibek Debroy, director, Rajiv Gandhi Foundation, Jean Dreze, Delhi School of Economics. Other members include representatives from trade associations and the NGO sector.
The terms of reference of the commission includes the review of the status of the unorganised sector in India, suggest the legal and policy environment that should govern the unorganised sector and suggest improvement for their redesign.
© 2025