Guest Post by JAMAL KIDWAI
Most of the people in Delhi, like in rest of India (according to official estimates, 92 per cent of India’s work force comprises of informal labour) earn their living from working in the informal sector. There is extensive academic literature on this subject. Typically, informal economy is that which does not find mention in official data, is not formally registered and regulated and falls outside the tax regulation.
The concept of informality became current in economic and social thought in the early 1970’s. It has since been re-considered and re-interpreted. The idea that the informal sector presented a liminal space for workers waiting to be absorbed by the formal sector, has been negated. Instead, current trends suggest that a majority of the Indian work force (approx.92%) labour under short-term informal contracts. Well-known labour historian Jan Bremen has somewhere written that the fact the informal economy is not officially regulated does not imply a complete absence of regulation. There are many unofficial means of regulation. Quite often activities that do not possess registration and legal sanction get denoted as informal or ‘underground’. This practice results in the official erasure of the economic value of the goods and services produced therein. It also serves the purpose of masking the over-exploitation and socially-levered extortion to which the most unprotected and vulnerable members of the working class are subjected.