India’s $5 Trillion Goal Hindered by Ignoring Informal Workers, says CSR Journal

The CSR Journal published an editorial warning that India’s ambition to become a $5 trillion economy faces a fundamental roadblock. It stresses that a substantial portion of the nation’s labour force operates in the informal sector, which remains largely excluded from formal credit, social protection and productivity gains. The commentary points out that without bringing these workers into the formal economy, the country will lose significant output, tax revenue and inclusive growth needed to hit the $5 trillion target. It calls for policy actions such as extending social security benefits, simplifying registration procedures and encouraging formalisation of informal enterprises. The editorial concludes that inclusive growth, anchored by the informal workforce, is essential for achieving the projected GDP milestone.