Informal workers in India as an economic shock absorber in the era of COVID-19: A study on policies and practices

Abstract

BACKGROUND: With greater uncertainties and economic divides in Indian formal and Informal economies; the lockdown in its unprecedented ways severely knocked the crucial vulnerabilities of majorly the informal sector of the economy. METHODS: The study was conducted across the Indian population who have suffered from the bad impact of COVID-19 and the lockdown. The data collection process was conducted during the COVID-19 outbreak from June 2020 to October 2020. Multiple regression analysis and independent-sample t-test were applied to test the hypothesis. RESULTS: The study closely highlights the role of the government system towards non-government organizations those who played a crucial role in the welfare of the informal workers. The results suggest that the most affected group of people in the COVID-19 lockdown are the informal workers who were working on daily wages for their bread and butter. The government endeavor was also found significant in supporting the informal workers.