Development Perspectives of Labourers in Unorganized Sector of Urban India – An Empirical Study

Author Name(s): Dr.Vikram K. Joshi
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India witnessed reasonably high economic growth over the last decade, but a large part of the population, particularly unorganized sector is continued to suffer economic exclusions even today in the era of globalization. Nagpur city in India in the recent years has gained an identity as a fast growing city. Resultantly, the increase in the population of unorganized sector is significantly apparent. Hence the study of this kind related to unorganized sector of Nagpur will prove useful to understand the economic development perspectives of urban poor population belonging to unorganized sector in India. For the study a sample survey of selected households of size 103 belonging to unorganized sector in Nagpur city is conducted. The study analyzes the economic development perspectives of urban poor in unorganised sector of Nagpur city along with identifying the significant attributes influencing the perception of the households for evaluation of their economic status and various development issues which needs immediate attention.

Keywords Unorganised Sector, Urban Poor, Economic Development


India’s economic growth remained significantly high over the last decade, but at the same time economic inequalities also grew sharply and the struggle for survival for those at the bottom became bad to worse as the large part of population still remained economically excluded. The people belonging to unorganized sector are still facing difficulty in protecting their livelihoods. Thus, inclusive development has always remained a major concern in the planning process. Inclusive development is viewed in terms of economic inclusion reflected in poverty reduction, better health care, increased access to education and improved access to basic amenities, etc. According to Amartya Sen (2001), development is about creating freedom for people and removing obstacles to greater freedom, and hence to development, includes poverty, lack of economic opportunities, corruption, poor governance, lack of education and lack of health. Thus, as pointed out by Dogra (2014), economic planning must ensure the availability of goods and services which meet the basic needs of the people, protect likelihoods, keep unemployment at low levels and provide essential infrastructure



Nagpur being the tier II city, it represents many tier II cities in India. A lot of development activities and huge employment opportunities are rising for the rural migrants as well as local urban population in the city. The low income groups are finding the places of dwelling in slums of the city which lacks sanitation and civic amenities due to non-availability of proper shelter. The government has implemented several schemes and programmes to improve the living conditions of slum dwellers, viz., urban housing to envisage ‘slum free India’, rural development through all-weather road connectivity to villages, Pradhan mantri jan dhan yojana for financial inclusion or rural and urban poor, insurance schemes, skill development initiatives, pension schemes, swaccha bharat abhiyan for cleanliness, digital India to digitally empower nation, right to education, etc., and many more. But, there are several developmental issues associated with urban labourers in unorganised sector in Nagpur and various such cities which demand urgent action by the authorities. These are availability of good roads in slum and nearby areas, tap water facility in the houses, cleanliness and overall area development, control of crime and women safety, employment opportunities in formal (organized) sector, stable and continuous electricity supply, proper drainage system, transport/conveyance facilities, problem of pollution and traffic problem in many areas. To conclude, if the above mentioned developmental needs are addressed immediately, it will lead to provide the urban labourers belonging to unorganised sector a better access to various benefits and better participation in economic activity. It will result into acquisition of various attributes which will not only influence their perception towards economic status but also lead to economic development in real sense through better economic participation.

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