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Consider the following statements regarding the unorganized sector in India:
1. In the unorganized sector, the maximum number of workers employed in an enterprise is fifty.
2. The term ‘unorganized worker’ is not defined in India under any act of government.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
Consider the following statements regardingthe unorganized sector in I...
  • According to National Commission for Enterprises in the Unorganised Sector, an unorganized sector refers to production or service-oriented enterprise owned by individuals or self- employed workers and if workers are employed, then the total number of workers cannot exceed 10. Central Statistical Organisation uses the term organized enterprise as small units with ten or more workers with power or 20 or more workers without power for the manufacturing sector. Hence, statement 1 is not correct. 
  • The term ‘unorganized worker’ is defined in India under Section 2(m) of the Unorganized Workers Social Security Act, 2008. An unorganized worker is a home-based worker or a self-employed worker or a wage worker in the unorganized sector and includes a worker in the organized sector who is not covered by any of the Acts pertaining to welfare Schemes as mentioned in Schedule II of Unorganized Workers Social Security Act, 2008. Hence, statement 2 is not correct.
  • The unorganized workers are essentially those who do not have the benefit of pension, provident fund, gratuity, maternity leave etc. and work mostly on daily/hourly wages. They are not represented by active trade unions.
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Most Upvoted Answer
Consider the following statements regardingthe unorganized sector in I...
"unorganized sector" refers to economic activities that are not regulated or recognized by the government.3. Workers in the unorganized sector often lack job security, social security benefits, and legal protection.4. The unorganized sector contributes a significant portion to India's GDP.5. The majority of India's workforce is employed in the unorganized sector.

Are these statements true or false?
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With reference to the economic policies of the British in India and its impact, consider the following statements: India's export surplus became vital for Britains' balance of payments by the end of the nineteenth century. The organised money market was completely under the British control. Which of the statements given above is/are correct?Expalantion: The British continued to exploit India's economy. The burden of East India Company's London establishment and dividends to its shareholders was replaced after 1858, by the expenditure on the Secretary of State's India Office. The Indian debt in England which was already considerable as a result of the Company's military ventures and suppression of the mutiny was further increased, when compensation to the Company's shareholders was added to Government of India's account. Both Home charges and private remittances were channelised through Indian exports as pointed out by the nationalist economists from Dadabhai Naoroji onwards. The character of economic drain which was originally mercantilist, underwent a change and it now took the form of exploitation through free trade. In the later stage, it got linked with the structure of British Indian finance capitalism. Statement 1 is correct: In fact, India's export surplus became vital for Britains' balance of payments by the end of the nineteenth century. The British rule inhibited and curbed indigenous industry through a variety of structural constraints. The government policies actively promoted the European enterprise and discriminated against Indians. Statement 2 is not correct: The outstanding feature of the Indian money market was its dichotomy; it consisted of two fairly distinct sectors, the organized and the unorganized. These two were not entirely unconnected, but the links were rather loose. The constituents of the organized sector of the Indian money market were the Imperial Bank of India, the exchange banks, and the Indian joint-stock banks. The unorganized sector comprised the indigenous bankers, moneylenders, chit funds, nidhis, etc., etc. The co-operative credit institutions occupied a somewhat intermediate position.

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Consider the following statements regardingthe unorganized sector in India:1. In the unorganized sector, the maximumnumber of workers employed in anenterprise is fifty.2. The term ‘unorganized worker’ is notdefined in India under any act ofgovernment.Which of the statements given above is/arecorrect?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?
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