ENA Knowledge Resource 2021-11-01 11:12:57 <p><strong>New Delhi, 1 Nov (KNN)</strong> As per a study by SBI Research, that Indias informal sector fell around 15-17 per cent in 2020-21 from 52.4 per cent in 2017-18 which cuts down the sector to more than a half in just 3 years.</p> <p>The reasons stated for this drastic fall are digitisation and gig economy.</p> <p>Aditi Nayar, Chief Economist, ICRA said, The large and the formal players are gaining at the cost of smaller and less formal entities from various sectors.</p> <p>After 2016, formalisation of sectors in India happened faster than other nations, the study said.</p> <p>The informal sector in Indian consist of enterprises that are own account enterprises.</p> <p>According to recent annual reports on Micro, Small and Medium Enterprises (MSMEs), it indicates that the sector contributes to around 30% of Indias GDP, and based on conservative estimates, employs around 50% of industrial workers.</p> <p>Over 97% of MSMEs can be classified as micro firms (with an investment in plant and machinery less than ₹25 lakh), and 94% are unregistered with the government.</p> <p>Hence, its important to gauge the impact of the shrinking informal sector on micro firms and its consequences as they are spread across rural and urban areas.</p> 27594 https://knnindia.co.in/news/newsdetails/knowledge-resource/formalisation-of-economy-happening-at-the-cost-of-small-businesses-icra-president 2021-11-01 11:12:57 knnindia.co.in