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Inclusive Growth and Social ChangeFormal-Informal-Agrarian Relations in India$
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Saumya Chakrabarti

Print publication date: 2016

Print ISBN-13: 9780199466061

Published to Oxford Scholarship Online: June 2016

DOI: 10.1093/acprof:oso/9780199466061.001.0001

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Informal Services and the Issue of Inclusive Growth

Informal Services and the Issue of Inclusive Growth

A Study on India

(p.390) 8 Informal Services and the Issue of Inclusive Growth
Inclusive Growth and Social Change

Saumya Chakrabarti

, Kasturi Sadhu
Oxford University Press

The issue of inclusive growth is dealt with by analysing separately the behaviours of unorganized service sector (without trade), informal trade, and informal sector (in general, infs) across their locational (rural/urban) and structural (self-employed/establishment) dimensions, based on the state-level data of India. In general, a higher and increasing concentration of modern (urban/establishment) infs is observed in the developed states as compared to the underdeveloped ones. The empirical analyses on intersectoral relations also indicate a progressive trend for the modern infs with the expansion of the formal sector, while in this whole process the traditional agriculture based petty infs suffers and may even contract. Thus, a duality is discovered across the behaviours of the petty and modern infs. However, most crucially, the economic conditions of all the segments of infs remain unaltered despite an expansion of the formal sector, indicating a persistence of misery among the marginal mass.

Keywords:   unorganized service sector, informal trade, composite informal sector, progressive trend of modern informal sector, immiserization in petty informal segments, intersectoral relation, resource constraint, petty-modern informal sector duality, persistence of misery, inclusive growth

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