Your skills, your success

When Patricia Narayan’s marriage ended, she had to find a way to support herself and her two children. She came up with the idea to set up small stalls on Chennai’s Marina Beach. She hired two differently-abled individuals to help her. She started selling snacks, fresh juices, and coffee on the beach. Her determination paid off, and she eventually started her chain of restaurants called Sandeepha Chain of Restaurants.

Thirukumaran Nagarajan spent 3-4 months sleeping in vegetable markets to gain insights. Now, his agritech startup, Ninjacart, has grown to include 200 collection centres and 1,200 warehouses all over the country.

According to the Ministry of Labour & Employment, the workers in the unorganised sector constitute about 93 percent of the total workforce in the country. A significant portion of these workers may lack formal employment agreements, regular working hours, or access to social security. Their income might also be inconsistent. Despite these challenges, the unorganised sector plays a crucial role by employing 83% of India’s total workforce and contributing a substantial 50% to the GDP in many economies. Within the unorganised sector workforce, a notable portion (approximately 65%) is involved in the agricultural sector. This statistic underscores the significant role played by the rural segment within the informal economy. So, young graduates in the field of agriculture can find jobs as environmental engineers, entrepreneurs, agronomy sales managers or agriculture specialists.

In an interview, Sumedha Dasgupta, a senior analyst from the Economist Intelligence Unit, said how India is in an advantageous position given its “abundant low-cost labor, the low cost of manufacturing, openness to investment, business-friendly policies and a young demographic with a strong penchant for consumption.” Based on these factors, Dasgupta expressed the view that India is a compelling option for establishing manufacturing centers until the end of the decade.

Even though job security and additional benefits might be absent, the unorganised sector holds a crucial position in the economy. It provides significant employment prospects and contributes to reducing poverty. This sector emerges as a vital income source for a considerable segment of the population, creating various means for people to earn their livelihoods.

Take the example of Sampa Nandi from Kolkata’s Bijoygarh. A single mother, she tried working at a beauty salon, survey companies, and sold cosmetics and garments before she ventured into app-based cab driving. She encountered her fair share of obstacles, including resistance from her mother-in-law and even her daughter. However, with three years now behind her in this profession, Nandi stands firm in her decision and harbours no regrets.

Ranjit Guha, an app-cab driver, isn’t overly concerned about job security. Formerly employed with an MNC in Delhi, the onset of the Covid-19 pandemic led to the loss of his job. Returning to his hometown, Kolkata, he knew he had to support his family and consequently turned to app-based cab driving. Presently, he manages a team of five drivers and earns more than his previous MNC income. When queried about the uncertainties surrounding job security and the absence of traditional employee perks, he responded with a hearty chuckle. “I had all the assurances in the Delhi company I worked for, but I still lost my job. So, job security isn’t guaranteed in private firms or the unorganised sector,” he said.

Dhriti Prasanna Mahanta, vice president, TeamLease Degree Apprenticeship, believes the unorganised sector offers valuable experiences, entrepreneurial opportunities, and hands-on insights. However, he also mentioned that the sector comes with significant drawbacks, including the lack of job security, limited growth opportunities, potential health and safety concerns, the informal nature of work, and sometimes a social stigma. “Prioritising versatile skill development, networking, and aligning choices with long-term objectives are essential. Education and advocating for fair labour practices remain crucial in this journey. By maintaining equilibrium and aligning personal aspirations, students can chart a fulfilling career path,” he said.

Morgan Stanley estimated that Indian manufacturing’s share of GDP will “rise from 15.6% of GDP currently to 21% by 2031” — which implies that manufacturing revenue could increase three times from the current $447 billion to around $1,490 billion, according to the bank. In the high-growth path, the manufacturing and construction sectors can accelerate the most.

Kolkata-based Roshan Agarwal has been in the bag and raincoat manufacturing industry for the longest time. He emphasised that the unorganised sector thrives on individuals who exhibit dedication and sincerity. He further highlighted that this sector presents a unique opportunity for aspiring entrepreneurs. “This is one sector which is a boon for entrepreneurs. As India is becoming more organised, the entrepreneurs stand a good chance to become successful,” he said.

Agarwal also touched upon the performance of India’s market for automotive parts and components. As of the close of the fiscal year 2022, this industry’s worth stood at approximately 56 billion US dollars. The automotive sector provides a variety of courses catering to varying levels of qualifications. For instance, students holding a 10+2 certificate with Mathematics, Physics, and Chemistry can opt for studies in automobile engineering or mechanical engineering, specialising in areas such as Machine Design or CAD/CAM Automation.

For the past 14 years, Vineet Agarwal has been successfully operating a software development company in Midnapore, a district in West Bengal. His team now comprises around 60 individuals. Throughout his journey, one major challenge he’s faced is the recruitment of skilled individuals. Despite offering employee benefits, Vineet has observed how talented workers in the unorganised sector tend to seek opportunities in multinational corporations (MNCs) or government roles. “While MNCs generally offer better pay, I also feel young talents perceive the unorganised sector differently. Many view it as a stepping stone, which affects the sector’s talent pool,” he said.

In his company, Vineet employs both freshers earning between Rs 12,000 to Rs 20,000 per month and experienced professionals making over a lakh. He points out that even in his brothers’ manufacturing and retail businesses they face a shortage of skilled individuals. “In the unorganised sector, your skills hold the power to mold your journey towards success,” he said.

Meanwhile, the government is taking several steps to better the life of the workers in the unorganised sector. From launching eShram, a nationwide portal for the registration of unorganized workers, to Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Pradhan Mantri Shram Yogi Maandhan Yojana, a government scheme meant for old age protection and social security of unorganised workers, the government aims to bolster social security within the sector. In March 2023, Minister of State for Labour and Employment, Rameswar Teli said a total of 28.64 crore unorganised workers have registered on eShram portal.

“Around 9.8 percent of informal workers within the organised sector are often hired through subcontracting or temporary arrangements, leading to wage disparities, job security, exploitation and adverse conditions. Recognising the value of the unorganised sector is pivotal. Effective government policies and initiatives are needed to foster growth by providing education, skills, credit access, and social security, thereby improving conditions. Initiatives like aiding small unorganised businesses, skill development programmes like apprenticeships, social security provisions, simplified loans, and measures against exploitation can empower informal workers and contribute to economic advancement,” said Mahanta.