<P> Labour in India refers to employment in the economy of India . In 2012, there were around 487 million workers in India, the second largest after China . Of these over 94 percent work in unincorporated, unorganized enterprises ranging from pushcart vendors to home - based diamond and gem polishing operations . The organised sector includes workers employed by the government, state - owned enterprises and private sector enterprises . In 2008, the organised sector employed 27.5 million workers, of which 17.3 million worked for government or government owned entities . </P> <P> Over 94 percent of India's working population is part of the unorganised sector . In local terms, organised sector or formal sector in India refers to licensed organisations, that is, those who are registered and pay GST . These include the publicly traded companies, incorporated or formally registered entities, corporations, factories, shopping malls, hotels, and large businesses . Unorganised sector, also known as own account enterprises, refers to all unlicensed, self - employed or unregistered economic activity such as owner manned general stores, handicrafts and handloom workers, rural traders, farmers, etc . </P>

Percentage of organised and unorganised sector in india
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