Reviving the economy will require addressing the two major challenges — of a rising informal labour force, and slackening demand. Due to widespread income inequality, which is further aggravated by a majority of the Indian workforce being employed in the informal sector, the section of the population who have a higher willingness to spend have been left with lesser disposable income in their pockets.
Also Read: New National Education Policy will improve accountability, employability: Industry executives
Reforms leading to reduction in workers’ income and social security affect their ability to demand goods and services, as well as lower their productivity.
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