A report by the State Bank of India’s (SBI) economic research department elaborated that the country’s informal economy has fallen to nearly 15-20 per cent of the formal GDP in contrast to 52 per cent three years ago, post the adoption of GST, ameliorated digitalization, as well as, demonetization, highlighted reports.
Nearly INR 13 lakh cr has been introduced into the formal economy by multiple mediums through the past few years, comprising the recent proposal on the e-Shram portal, based on SBI Ecowrap.
Since 2016 many steps developed the digitalization of the economy, the development of the gig economy, larger formalization at a speed that could be faster when compared to other nations, highlighted the report by the SBI.
The report said that through the last few years, the government has undertaken many steps towards formalization. A way to study the formalization extent is the monthly EPFO payroll report that offers information on entities remitting first Electronic Challan-cum-Return (ECR) in a said month.
By means of this statistic, the SBI report estimates that nearly 36.6 lakh jobs have been formalized until August 2021.
The e-Shram portal, India’s first national database of unorganized workers, wherein 5.7 cr workers, until October 30 have registered. 62 per cent of the workers are between 18-40 years of age, with 92 per cent having a monthly income below INR 10,000.
The report also brought to light that workers from the agricultural sector accord for 55 per cent of registration, which was trailed by the construction sector at 13 per cent. From the 5.7cr registered workers, 4.6cr have bank accounts, but 1.1cr have Aadhar linked bank accounts.
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