India’s Informal Workforce – Trapped Between Survival and Stagnation

Why in News?

The recent findings of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025 shed light on this paradox, revealing a sector that is expanding in size but not necessarily evolving in quality.

What is the scale and significance of the informal sector?

• Establishments – It comprises 7.92 crore establishments, up from 7.34 crore in 2023–24.
• Employment – It employs 12.81 crore workers, making it one of the largest employment providers.
• This scale highlights its dual role:
  • Absorbing surplus labour, especially from agriculture.
  • Sustaining local consumption through small-scale production and services.
• However, its dominance also reflects the limited capacity of the formal sector to generate adequate employment.
• Growth in Establishments – The nearly 8% increase in establishments indicates steady entry and survival of small enterprises.
• However, the sectoral composition remains largely unchanged:
  • Manufacturing: 27%
  • Trade: 31%
  • Services: 42%
• This stability suggests that while the number of enterprises is growing, the structure of the sector is not undergoing significant transformation.
• Employment Trends – Employment has grown by 6.18%, reaffirming the sector’s role as a labour absorber.
• Yet, the nature of employment is revealing:
  • 62% are owner-operators
  • Only 24% are hired workers
• This indicates that employment growth is primarily driven by self-employment and family labour, rather than the creation of stable, wage-paying jobs.
• Rising Gross Value Added (GVA) – The sector recorded a 10.9% increase in GVA between 2023–24 and 2025.
• The distribution of GVA highlights a shift:
  • Services – 42%
  • Trade – 37%
  • Manufacturing – 21%
• This reflects the growing importance of service-oriented and trade-based activities, driven by local demand rather than industrial expansion.

What are the issues?

• Limited Industrial Transformation – Manufacturing, though significant, shows moderate growth due to:
  • Low capital investment
  • Limited technological adoption
  • Small-scale operations
• The shift toward services and trade suggests a consumption-driven informal economy, rather than one anchored in productivity-enhancing industrialisation.
• Modest Productivity Gains – Per worker GVA increased from ₹1.49 lakh to ₹1.56 lakh, a growth of about 4.5%, lower than the previous year’s growth rate.
• This indicates:
  • Incremental improvements rather than structural shifts
  • Continued reliance on traditional methods
  • Limited technological progress
• Wage Growth and Inequality – Average annual wages rose by 3.88%, from ₹1,41,071 to ₹1,46,550.
• However, this increase is modest compared to GVA growth.
• This divergence suggests:
  • Unequal distribution of gains
  • Weak bargaining power of workers
  • Absence of formal labour protections
• Thus, while output increases, workers do not proportionately benefit, reinforcing economic vulnerability.

What are the Gender Dimensions in the Informal Economy?

• Rise in Women-Owned Enterprises – The share of women-owned proprietary enterprises has increased marginally from 26% to 27%.
• While this indicates progress, it remains limited.
• Structural Barriers – Women entrepreneurs face multiple constraints:
  • Limited access to credit due to lack of collateral.
  • Weak market linkages.
  • Concentration in low-value, home-based activities.
• As a result, women’s participation often remains confined to subsistence-level enterprises, limiting their economic advancement.
• Vulnerability to External Shocks – The informal sector is highly susceptible to global and domestic disruptions.
• Impact of Rising Fuel Prices – India’s dependence on crude oil imports—especially from West Asia—makes the sector vulnerable to geopolitical tensions. Rising fuel prices increase:
  • Transportation costs
  • Input costs
• Since trade and services account for 80% of GVA, such cost increases directly affect profitability.
• Decline in Remittances – Remittances from West Asia support household consumption in many regions Any disruption:
• Reduces local demand.
• Weakens small enterprises dependent on consumption.
• Thus, external shocks are transmitted directly into the informal economy, amplifying its fragility.
• Structural Features of Informality – Nearly 95% of enterprises operate as proprietary or partnership units.
• This structure has both advantages and limitations:
• Advantages
  • Low entry barriers
  • Flexibility and adaptability
  • Minimal regulatory burden
• Limitations
  • Restricted access to formal finance
  • Limited scalability
  • Absence of social security for workers
• This duality explains why the sector persists but struggles to transform.

What are the policy measures to be taken?

• From expansion to transformation – Policy must move beyond counting enterprises to improving their quality.
• Key priorities include:
  • Enhancing productivity through technology adoption.
  • Promoting skill development.
  • Facilitating access to formal credit.
• Strengthening labour conditions – Extend social security to informal workers.
• Improve wage conditions and job security.
• Encourage formalisation without increasing compliance burdens.
• Supporting women entrepreneurs – Improve access to credit through targeted schemes.
• Strengthen market linkages.
• Promote women’s participation in higher-value sectors.
• Building resilience – Reduce dependence on external shocks through diversified energy sources.
• Strengthen local supply chains.
• Enhance infrastructure to reduce logistics costs.

What lies ahead?

• The ASUSE 2025 findings present a nuanced picture of India’s informal economy.
• While the sector is expanding in scale, it remains constrained by low productivity, limited wage growth, and persistent informality.
• It continues to provide livelihoods, but largely in the form of survival-oriented employment rather than pathways to economic mobility.
• The central challenge, therefore, is not merely growth but transformation.
• Unless policies focus on strengthening enterprises, improving labour conditions, and addressing structural inequalities, India’s informal workforce will remain caught between survival and stagnation.

Reference

The Indian Express| India’s Informal Workforce

Water Crisis in India – Gendered Realities, Social Distress, and Policy Imperatives

Why in News?

India is facing an acute freshwater crisis and the issue is even bigger when it comes to gender disparities in water catastrophe.

What is the nature and extent of water crisis in India?

• Water scarcity in India – It is both physical and economic in nature.
• According to global benchmarks, water scarcity occurs when annual per capita availability falls below 1,000 cubic metres.
• India is fast approaching this threshold.
• Challenges – Despite significant improvements in access to drinking water—from around 80% coverage in the early 2000s to nearly 95% today—serious challenges remain:
  • Around 600 million people face water stress.
  • Nearly 200,000 deaths annually are linked to inadequate access to safe water.
  • Rural-urban disparities persist, with rural areas lagging behind urban regions in reliable water access.
  • Moreover, access does not guarantee functionality.
  • Many households with tap connections still depend on alternative sources due to irregular supply or poor infrastructure.
• Water scarcity & Gender norms – India’s water crisis represents a complex intersection of environmental stress, socio-economic inequality, and deeply embedded gender norms.
• With 18% of the world’s population but only 4% of its freshwater resources, the country faces mounting pressure on its water systems.
• Future challenges – Per capita water availability is projected to decline to the scarcity threshold of 1,000 cubic metres by 2050, signaling a severe challenge to sustainable development.
• While the crisis affects all sections of society, its impacts are uneven, with women bearing a disproportionate burden due to structural inequalities and traditional gender roles.

What are the socio-economic dimensions of water scarcity?

• Rural-urban divide – Urban areas benefit from better infrastructure and governance systems, while rural populations often rely on distant and unreliable sources.
• Poverty and inequality – Low-income households spend a higher proportion of their income on securing clean water, often purchasing it from private vendors.
• Health implications – Water scarcity exacerbates water-borne diseases, particularly in drought- and flood-prone areas, affecting vulnerable populations disproportionately.
• Education disruptions – Children, especially in drought-affected regions, are frequently withdrawn from schools to assist in water collection, contributing to increased dropout rates.

What is the gendered dimensions of water scarcity?

• Women as primary water collectors – Data indicates that women are responsible for water collection in nearly 71% of rural households.
• This unpaid labour consumes significant time and energy:
• Many women spend 30–40 minutes daily fetching water.
• This translates into a substantial loss of productive economic time annually.
• Physical and emotional strain – Long distances, unsafe routes, and heavy loads lead to:
  • Musculoskeletal issues
  • Fatigue and stress
  • Increased vulnerability to harassment and violence
• Impact on agency and opportunities – Time spent fetching water limits women's participation in:
  • Education
  • Paid employment
  • Community decision-making
• The water wives phenomena – In drought-prone regions of Maharashtra, a disturbing practice has emerged where men marry multiple women—often widows or economically vulnerable individuals—to increase household capacity for water collection.
• These “water wives”:
  • Lack marital rights and inheritance.
  • Are treated primarily as labour providers.
  • Reflect the commodification of women under resource stress.
• Sugarcane cultivation and gender exploitation – Sugarcane, a water-intensive crop, dominates agriculture in certain drought-prone areas.
• Female migrant workers in these regions face:
  • Long hours of agricultural labour
  • Additional domestic responsibilities, including water collection
  • Lack of sanitation facilities
• This has led to severe health consequences, including reproductive health issues and, in extreme cases, hysterectomies. This highlights the prioritisation of commercial agriculture over local water needs.
• Women as agents of change – Despite systemic disadvantages, women are not merely victims but active agents in water management:
  • Collective Action – Women farmers in Maharashtra have demanded equitable access to irrigation water.
  • Community-based initiatives have challenged male-dominated water governance structures.
  • Grassroots Leadership – Groups like “jal sahelis” (water friends) have revived traditional water bodies.
  • Women in Himalayan regions have led efforts to rejuvenate drying springs.
  • These examples demonstrate women's knowledge, leadership, and capacity in sustainable water management.

What are the policy landscape and gaps?

• Government initiatives – Programs such as the Jal Jeevan Mission aim to provide tap water connections to all households.
• Remaining gaps – Functionality and reliability of water supply
• Lack of gender-sensitive implementation
• Missing gender perspective – Most water and agricultural policies focus on:
  • Efficiency
  • Productivity
  • Output
• Ignored factors
• Women’s unpaid labour
• Their role as farmers and water managers
• Structural barriers like land ownership and decision-making power

What are the need for gender-responsive water governance?

• Recognising women’s role – Policies must acknowledge women as:
  • Primary stakeholders
  • Knowledge holders
  • Decision-makers
• Institutional reforms – Ensure women’s participation in water governance bodies
• Improve land ownership rights
• Integrate gender budgeting in water policies
• Reducing unpaid labour – Invest in local water infrastructure
• Promote decentralized water systems
• Ensure reliable household-level supply
• Sustainable agricultural practices – Shift away from water-intensive crops in drought-prone areas
• Promote crop diversification and water-efficient irrigation methods

What lies ahead?

• India’s water crisis is not merely an environmental issue but a deeply social and gendered challenge.
• It exposes systemic inequalities in access, control, and decision-making.
• Women, while disproportionately burdened, also represent a powerful force for change.
• Effective solutions must therefore go beyond infrastructure and incorporate gender-responsive governance, equitable resource distribution, and recognition of women’s agency.
• Only through such an integrated approach can India move towards sustainable and inclusive water security.

Reference

The Indian Express| Water Scarcity & Dimensions

Seychelles Giant Tortoise

Why in News?

Recently, the world's oldest living land animal, at 193 years, Jonathan, a nearly 200-year-old tortoise, trended globally after death rumours on the island of St. Helena.

• Scientific name – Aldabrachelys gigantea hololissa
• Family – Testudinidae
• It is a rare subspecies of the Aldabra giant tortoise native to the granitic islands of the Seychelles.
• Commonly known as – the Seychelles giant tortoise or the Seychelles domed giant tortoise.
• Habitat – They inhabit grasslands, scrub forests, and coastal dunes.
• Distribution – Native to the Seychelles, its largest surviving population today is found on the Aldabra Atoll, a UNESCO World Heritage Site.
• It was once found on many islands of the Indian Ocean.
• For conservation purposes, they have also been introduced to other islands of Seychelles to safeguard their survival.
• Size – Males can weigh up to 250 kg, females around 150–160 kg.
• Physical Appearance – It has a broad, brownish-grey carapace that is flattened on the back with raised scutes.
• This distinguishes it from the more roundly-domed A. g. gigantea and the saddle-backed A. g. arnoldi.

• Morphology – Dome-shaped shell, strong limbs, herbivorous diet, slow-moving reptile with an extraordinary lifespan.
• Reproduction – Females lay clutches of 9–25 eggs. Hatchlings are vulnerable to predation, requiring conservation efforts for survival.
• Adaptation – Adapted to arid island ecosystems, capable of surviving on limited vegetation and water, their slow metabolism supports longevity.
• Diet – Primarily herbivorous, feeding on grasses, leaves, fruits, and woody plant stems.
• Conservation Status 
  • IUCN – Vulnerable
  • CITES – Appendix II
• Threats – Habitat loss, illegal hunting, and climate change.

References

1. The Hindu | Jonathan
2. Nature seychelles | Aldabra-giant-tortoise

National Anubhav Awards, 2026

Why in News?

During the National Anubhav Awards 2026 campaign, published write-ups reached a record high of 2,141, with the best entries set to be honoured at the upcoming award ceremony.

• Launched – March,2015.
• Aim – To recognise and incentivise outstanding contributions of retired and retiring government employees.
• Purpose – To document the administrative history of the country through the sharing of knowledge, best practices, and administrative insights by retired and retiring employees.
• Nodal Ministry – Ministry of Personnel, Public Grievances & Pensions.
• Eligibility – Any employee who is going to retire in next 8 months or who has retired within a period not exceeding 3 years can submit their write-up on the portal.
• Sectors Covered – Central Government, CPSU, or Public Sector Bank employees.
• Categories – Based on various categories, includes
  • Accounts and administration
  • Good governance practices
  • Government process re-engineering
  • Information technology
  • Research and innovation
  • Simplification of procedures
  • Public dealing and fieldwork contributions
  • Learning from failures
  • Acts of bravery or strength
  • Constructive suggestions for improvement.
• Selection Process – Retiring/retired staff upload a 5,000-word write-up on the portal, which must be officially approved and published by their Ministry.
  • Tier-I Screening – A committee scores entries (out of 40) based on criteria like content, innovation, leadership, and medals specific to the employee’s pay grade.
  • Tier-II Evaluation – A high-level Evaluation Committee reviews the top-scoring entries for final shortlisting.
  • Final Clearances – Winners are finalised only after receiving No Objection Certificates (NOCs) and clearance from the Intelligence Bureau (IB) and the Department Secretary.
• Final Authority – The Department of Pension & Pensioners’ Welfare holds final authority over all decisions.
• National Anubhav Award (5 Winners) – Includes a medal, a certificate, and a cash prize of Rs. 10,000.
• Jury Certificate (10 Winners) – Includes a medal and a certificate.
• Present Status – Till date, 63 National Awards and 29 Jury Certificates have been presented.

References

1. PIB | Anubhav Awards
2. Pensioners Portal | Anubhav Awards

Bioluminescence

Why in News?

Bioluminescence, the natural ability of organisms to produce light, is increasingly observed in Indian coastal regions (Goa, Maharashtra) and forests (Western Ghats).

• Definition – Bioluminescence is the ability of living organisms to produce and emit light through chemical reactions.
• Mechanism – Luciferase, an enzyme, enables luciferin to react with oxygen and release energy in the form of light.
• Some species use symbiotic bioluminescent bacteria instead of luciferin/luciferase (e.g., squid, anglerfish).
• About 76% of all marine animals are bioluminescent, but not freshwater animals.
• Features – It is a “cold light”, which means that the light generated does not produce heat.
• It used to attract prey/mates, camouflage, defence (e.g., glowing mucus) and Spore dispersal (fungi).
• Historical use – During World War I, soldiers used glow worms to read important messages or maps in the dark without giving their position away.
• Unique Examples

• Environmental Concerns – Today, a new phenomenon called “light pollution” is disrupting Nature’s glow.
• Artificial lighting (LEDs, streetlights) disrupts natural cycles.
• Many bioluminescent species require complete darkness to glow effectively; increasing urban brightness threatens their visibility and ecological balance.

Reference

The Hindu | Bioluminiscence

Maternal Mortality in India

Why in News?

A Lancet study (2026) highlights India’s challenge in meeting the SDG target of reducing Maternal Mortality Ratio (MMR.

• Definition – Maternal mortality is the death of a woman during pregnancy, childbirth, or within 42 days of termination, resulting from pregnancy-related causes​​​​​​.
• Maternal Mortality Ratio (MMR) – It is the number of maternal deaths per 100,000 live births during a given period.
• SDG Target – Maternal Mortality Ratio (MMR) to below 70 deaths per 1 lakh live births by 2030.
• India’s Trend
• MMR Progress – MMR fell from 508 in 1990 to 116 in 2023 (Lancet estimate); India recorded 24,700 maternal deaths in 2023.
• Sample Registration System (SRS) 2021–23 – Reports a lower MMR of 88 per 100,000 live births, showing variation between datasets.
• Causes – Haemorrhage & Hypertensive disorders (40% of deaths), Covid 19 setback (2020 21) disrupted healthcare services, data discrepancies & wide demographic diversity.
• State-Level Challenges
  • Assam – MMR dropped from 215 to 110 (2015–2023).
  • Uttar Pradesh – MMR fell from 197 to 141, but is still above the national average.
  • Whereas the southern states are closer to achieving the SDG target.
  • National average pulled down by high burden states.
• Targeted action to reduce MMR – By strengthening primary healthcare systems, with a focus on maternal and child health.
• When child mortality declines, fertility rates tend to decrease as well - lower fertility, in turn, contributes to a reduction in maternal mortality.
• Global Context – 100 countries have already met the SDG target of below-70 MMR by 2023.
• India is in the 100–140 range, along with Ethiopia, Nigeria, Pakistan, and DRC.
• Top improver – Despite challenges, India has been among the top improvers since 1990, alongside Bangladesh, Ethiopia, Morocco, Nepal, and Rwanda.
• Comparisons caution – India’s large birth numbers (23.22 million in 2023) make direct comparison with smaller countries, such as the Democratic Republic of the Congo (565 per lakh) or Nigeria.

India ranks 2^nd globally in maternal deaths, recording between 19,000 and 24,700 deaths annually, which represents about 10% of the worldwide total. (Nigeria holds the highest share.)

References

1. Indian Express | MMR
2. Sansad | MMR
3. World Population Review | MMR