With reference to India's labor market and the Decent Work Index, consider the following statements: 1. The Decent Work Index increased from 0.247 in 2017-18 to 0.302 in 2023-24. 2. Nearly 90% of the Indian workforce is currently employed in the informal sector. 3. The Decent Work Index rose to 0.302 in 2023-24 while 50% of the workforce remains informal. Which of the statements given above is/are correct?

India's Decent Work Index rose to 0.302 but 90% of workforce remains informal

GS3Economy · S&T · Environment · Security· Employment & inclusive growth· Prelims + Mains· 2 November 2026

Labor market dynamics and job quality: a key GS3 theme regarding the informal economy.

Why in news

A study by Anukriti Negi et al. analyzed the Periodic Labour Force Survey to highlight that while India's Decent Work Index rose to 0.302, 90% of the workforce remains in informal employment.

Background

The study analyzed India's labor market using data from the Periodic Labour Force Survey. It recorded an increase in the Decent Work Index from 0.247 in 2017-18 to 0.302 in 2023-24.

Facts for Prelims

FactDecent Work Index: Rose from 0.247 in 2017-18 to 0.302 in 2023-24
FactInformal employment: Nearly 90% of the Indian workforce remains in the informal sector
BodyPeriodic Labour Force Survey: The primary source used to assess job quality and labor market trends

Prelims practice question

With reference to India's labor market and the Decent Work Index, consider the following statements:

The Decent Work Index increased from 0.247 in 2017-18 to 0.302 in 2023-24.
Nearly 90% of the Indian workforce is currently employed in the informal sector.
The Decent Work Index rose to 0.302 in 2023-24 while 50% of the workforce remains informal.

Which of the statements given above is/are correct?

(a)1 only
(b)2 only
(c)1 and 2 only
(d)2 and 3 only

Show answer

Answer: (c) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: Nearly 90% of the workforce remains in the informal sector.

For Mains

Q. Discuss the structural challenges in transitioning India's massive informal workforce toward 'decent work' and job quality standards.

Dimensions to cover in your answer

Structural bottleneck: High concentration of labor in unorganized sectors lacking social security and formal contracts
Policy trade-off: Balancing rapid job creation with the stringent regulatory requirements of formalization
Institutional gap: Limited enforcement of labor protections for the 90% informal workforce

Keywords: Decent Work Index · Informal Economy · Job Quality · Labor Market Dynamics · Social Security

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