URBAN INFORMAL MANUFACTURING SECTOR IN ORISSA - A CASE STUDY OF CUTTACK CITY

Abstract

Promotion of the urban informal sector has become the new strategy of development in the developing economies. This paper attempts a study of some of the important characteristics of this sector in the city of Cuttack and compares it with that of the formal sector. The major strengths of this sector are its low capital requirement, higher employment generation capacity with lower amount of capital base and flexibility. Important weaknesses of this sector are, (i) its segmentation on the basis of industrial activities, employment size, capital base, pattern of linkages, and productivity levels and, (ii) its skewed employment structure of being an absolute domain for males. Specific policies for specific sectors of the IMS may be formulated to tackle the former. To overcome the latter, state can undertake some positive measures in the field of credit, training, skill formation and marketing to encourage more entry of women.Urban; informal sector;manufacturing;Orissa, India; Cuttack;Employment; training; skill; credit; marketing; capital; finance; linkage; productivity