Analyze the role of the unorganized sector in GDP.

The unorganized sectors comprise of small-scale enterprises, where working hours are not fixed, it has daily wages, there is no job security. Example construction workers, people working in small workshops. Whereas the organized sector is opposed to it, it has job security, fixed wages. Example: factories, industries.

The people working in unorganized sectors mostly belong to the vulnerable section of society like the women, SC/STs, small and marginal farmers, artisans, etc.

However, the informal/unorganized sector has a predominant place in the Indian economy in terms of its contribution to the GDP and employment. The importance of the sector is evident from the fact that more than 50% of the GDP comes from this sector.