Informalization of workforce in Manufacturing Sector: Degeneration of Employment Standards

Since the beginning of Industrial Foundation in the second half of 20^th century, Indian Manufacturing sector has emerged as a very important component of India's economic growth. Along with other contributions, the significance of manufacturing sector lies in its capacity to generate employment. From broader perspective, workers/employees can be classified into two categories: contract employees and regular employees. In the last 10 years, sharp rise has been observed in the share of contract workers. This increase in contractual employment is known as informalization of workforce. Mostly these contract workers are denied of advantaged of regular employment viz. job security, good working conditions, better salaries, and benefits of social security (PF, ESIC etc.). This article discusses and analyzes the potential of manufacturing sector with respect to job creation and the deteriorating standards of employment in the same.