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Informal Economies in India

By February 24, 2023June 30th, 2025No Comments

By Brian Turnbull

Brian Turnbull, PhD is an Assistant Professor of Instruction with the Department of Sociology and Interdisciplinary Social Sciences at the University of South Florida and was a participant in the 2019-2020 CAORC-AIIS Faculty Development Seminar to India. In this essay he describes what ‘informal economies’ are and discusses their importance in India.

Walking the streets of Mysore, I was struck by how clear and open the sidewalks were along the main thoroughfares. Having walked through the streets of many other Indian cities, I was accustomed to walking on the street edges due to the number of hawkers and storefronts encroaching on the sidewalks that blocked most pedestrian traffic. Space is always at a premium, so any open space is commandeered by entrepreneurs unable to afford storefront space. However, in Mysore something was different. I enquired and was told the municipal corporation had managed to strike a deal with street-side sellers to open up the sidewalks. What this deal entailed and where the hawkers have gone remains a mystery to me, but I hope to investigate further in the future. To begin this project, I have reviewed the literature on official attempts to regulate street-sellers in India, and how incredibly massive the informal economy, of which hawkers are just the tip of the iceberg, truly is in the country.

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