Question : The "informal sector" in India is characterized by:
Option 1: Strict adherence to labor laws and regulations
Option 2: High productivity and efficiency
Option 3: Lack of social security benefits and job stability
Option 4: Exclusively consisting of self-employed individuals
Correct Answer: Lack of social security benefits and job stability
Solution : The correct answer is c) Lack of social security benefits and job stability.
The informal sector in India refers to economic activities that are not regulated by labor laws and lack social security benefits. Workers in the informal sector typically do not have formal employment contracts, job stability, or access to benefits such as health insurance, pension, or paid leave. They often work in small-scale enterprises, self-employment, or as casual laborers. The informal sector is characterized by its informality and the absence of legal and social protections typically associated with formal employment.