In the vast and intricate tapestry of India’s economy, one segment often overlooked but never to be underestimated is the unorganised sector. This dynamic and resilient sector has proven to be a beacon of hope offering substantial employment opportunities, fostering entrepreneurship, and sometimes even outshining its organised counterparts!
The unorganised sector is the very backbone of the Indian economy, employing a significant portion of the population. It provides jobs to an array of individuals — from street vendors and small shop owners to skilled artisans and labourers. The unorganised sector accounts for over 80% of total employment in India and contributes around 45-50% of the country’s total GDP! Projections indicate that by 2030, the unorganised sector’s share of the Indian economy could grow by 20% igniting a tidal wave of job creation and economic expansion!
What sets the unorganised sector apart is its capacity to let dreams take flight from the smallest of seeds. For individuals often operating outside formal regulations and traditional labour structures, the perceived disadvantage can also be a profound source of inspiration to improve their economic outcomes benefitting society and the economy at large. There are multiple examples of small businesses and enterprises that began life as single shops or roadside ventures and then grew to be behemoths!
While the USA may have Kentucky Fried Chicken founded by Colonel Harland Sanders, selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression, India, too, has its own success stories. Prafull Billore, a dropout from IIM Ahmedabad, started a tea shop right outside the institute’s gates in 2017. Today, MBA Chaiwalla has 200 plus franchises in more than 100 cities in India. From humble beginnings in a 6’X6’ kiosk inside a Spencer’s retail store in Kolkata in 2008, WOW! Momo has grown to more than 660 plus outlets across India. Sagar Jagdish Daryani and Binod Kumar Homagai, the founders of WOW! Momo, are the poster boys of new India’s love for entrepreneurship with their brand being valued at Rs. 1225 crores in 2021!
The stories of the MBA Chaiwalla and Wow! Momo aren’t isolated incidents; they are emblems of a dynamic undercurrent surging through our nation. They remind us that the unorganised sector isn’t a fallback option but a vibrant arena brimming with possibilities. As we traverse an era marked by rapid changes, this sector’s resilience and potential to pivot could be our nation’s secret weapon for sustained growth. There are examples galore all around us from truckers who started with one truck and now own their own fleet to garment shops that started on footpaths and then grew into large chains. Society at large needs to understand and appreciate the huge contribution being made by this sector on an everyday basis.
Providing opportunities for the right kind of skilling of this large workforce needs urgent attention. It is inevitable that as the Indian market matures, and consumers become more discerning, quality of service delivery shall be the key differentiator. Professionals across trades shall stand to benefit immensely if they can undergo certification courses in their areas of specialisation. Certified professionals shall be the default first choice for knowledgeable customers. Will you not be willing to pay a little extra for a maid who has been trained to use your expensive household appliances, or a driver of your luxury car comfortable with the advanced electronics and driver assist systems? The government and the education sector needs to seriously consider these requirements and come up with innovative solutions.
In a nation where the corporate ladder may seem out of reach for many, the unorganised sector has emerged as a beacon of hope. It empowers individuals to chart their own course, redefine their destinies, and contribute significantly to the Indian economy. It’s time we recognise this sector’s significance, nurture it with appropriate policies, and unleash its boundless potential for a brighter future!
Dr Sanku Bose, Group CEO (Techno India Group)