An Analysis of the Growth of Internet Driven Informal Sector of India

The Indian economic development process has been following an indigenous path instead of following any laid down by the traditional development economic theory. Given its native characteristics and population structure the Indian economy has got bifurcated into the formal and informal segments. A growing body of literature is identifying the merits of the Indian informal economy. The present study is a step forward in the same direction. The analysis is based on the Annual Survey on Unincorporated Sector Enterprises (ASUSE) 2021-22 and utilizes the Stochastic Frontier Analysis framework to explore the position of the ICT enabled informal sector firms in India. The findings confirm that the said fraction of the India’s informal economy is faring efficiently compared to the rest. The study is concluded by making timely policy recommendations to enhance the outcomes of the ICT enabled fraction of the Indian informal economy. JEL Classification H21; L86; O14