NSSO survey finds COVID-19’s second wave hit informal economy hard
- India’s large informal non-agricultural sector was badly hit by the second wave of the COVID-19 pandemic, but has recovered gradually since then.
Highlights:
- It appears that the unincorporated manufacturing, trade and other service activities were hit badly by the second wave of the pandemic; however, the situation improved gradually from July 2021 onwards
- During April-June 2021, at the peak of the most fatal COVID wave, the number of estimated informal enterprises were pegged lower.
- By contrast, surveys carried out between January and March 2022 painted a different picture.
- The NSSO said the lower reporting in the first quarter affected the overall annual estimates for 2021-22 of 5.97 crore firms with almost 9.8 crore workers, to a great extent.
- Between October 2022 and March 2023, the number of estimated informal firms had risen.
- This 7.84% annual growth in jobs demonstrates the sector’s capacity to generate employment
- The maximum growth in employment during the period was observed in other services (13.42%) followed by manufacturing (6.34%).
- The survey data, released by the Statistics Ministry, is used in compiling national account statistics as the country’s unincorporated non-farm sector plays a key role in generating jobs, creating economic value and the overall socio-economic landscape.
Prelims Takeaway
- Informal sector
- NSSO