State and elaborate whether the following statement is true or false, with valid arguments : "Indian economy has showed satisfactory progress towards formalization of workforce in the recent past." "In India, the self-employed constitute around 60% employees. The possible incidence of under employment is the highest among the self-employed." As an economist, suggest and elaborate any two measures that may be taken to ensure more productive employment for the self-employed.

Question

Accepted Answer

Statement 1: False. Indian economy has not shown satisfactory progress towards formalization of workforce.

Arguments:
1. Only 6% of workforce is in formal sector
2. Informal sector accounts for 94% of employment
3. Growth in formal jobs has been slow
4. Most new jobs are in informal sector
5. Contract labor and casual work have increased

Statement 2: True. Infrastructure development contributes to formalization.

Arguments:
1. Better infrastructure attracts formal sector investment
2. Industrial corridors create formal employment
3. Digital infrastructure enables formal business operations
4. Transportation infrastructure supports organized trade

The formalization of workforce is essential for:
- Social security coverage
- Better working conditions
- Higher productivity
- Inclusive growth