Formal employment rises from 17.9% to 22.8% in 6 years: Economic Survey

Economic Survey: A rise in share of formal employment indicates that more people are getting regular jobs and being employed in the organised sector.

The share of formal employment has seen a rise of nearly 5 percentage points over the last six years, indicating an increasing formalisation of the Indian economy, the 2020 Economic Survey said.

The Economic Survey that was released today a day before the Union Budget 2020, states that the share of formal employment has increased from 17.9 per cent in 2011-12 to 22.8 per cent in 2017-18.

A rise in share of formal employment indicates that more people are getting regular jobs and being employed in the organised sector.

Commenting on efforts for boosting entrepreneurship and wealth creation at the grassroots level, the Economic Survey said new firm creation in India has increased "dramatically" since 2014, the year when the Narendra Modi government came to power.

The survey said as per the World Bank, India ranks third in number of new firms created.

It said that between 2014 and 2018, new firms in the formal sector saw a cumulative growth rate of 12.2 per cent, as compared to 3.8 per cent during 2006-2014.

"About 1.24 lakh new firms were created in 2018. This was an increase of about 80 per cent from about 70,000 firms in 2014," the Economic Survey said.

The survey has also estimated that India GDP growth will hover between 6-6.5 per cent in the financial year 2020-21.