What constrains the performance of enterprises in India's informal sector?

Rajesh Raj Natarajan and Kunal Sen

No wp-2026-60, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines the informal sector in India from a production perspective and focuses on the constraints that affect the growth and sustainability of informal enterprises. It relies on nationally representative enterprise-level data from 2010/11 to 2023/24, complemented by findings from qualitative surveys. The results show that the sector has expanded but that this expansion is largely driven by a rise in the number of enterprises, while the growth in employment and value addition remains limited.

Keywords: Informal sector; Firm performance; Efficiency; Total factor productivity; India (search for similar items in EconPapers)
Date: 2026
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