E-SHRAM – To Look at Informal Economy of India


E-SHRAM- To look at Informal Economy of India

According to the latest data, as many as 27.69 crore informal sector workers are registered on the e-Shram portal in India.

Launched in 2021, e-Shram portal is aimed at building a comprehensive National Database of Unorganized Workers (NDUW) in the country.

The main aim of launched e-Shram is to register unorganized workers such as construction laborers, migrant workforce, street vendors, and domestic workers among others.

  • The e-Shram card contains a 12-digit unique number.
  • If a worker is registered on e-Shramportal and meets with an accident, he/she will be eligible for Rs 2 lakh on death or permanent disability and Rs 1 lakh on partial disability.
  • The aim of the portal is to boost the last-mile delivery of welfare schemes for unorganized workers in the country.

An Informal economy represents enterprises that are not registered, where employers do not provide social security to employees. In many parts of the developing world; including India, informality has reduced at a very sluggish pacemanifesting itself most visibly in urban squalor, poverty and unemployment.Despite witnessing rapid economic growth over the last two decades, 90% of workers in India have remained informally employed, producing about half of Gross Domestic Product (GDP). The official Periodic Labor Force Survey (PLFS) data shows that 75% of informal workers are self-employed and casual wage workers with average earnings lower than regular salaried workers.