An impact analysis of Informal Economy in NCR towns: Case Study of Sohna

Abstract

The informal economy plays a vital role in shaping the economic landscape of towns within the National Capital Region (NCR), particularly Sohna, Haryana. This literature review explores the multifaceted impact of the informal economy in NCR towns, focusing on employment generation, urbanization, and socioeconomic challenges. Studies highlight that rapid urbanization in Sohna has fostered informal settlements, where migrant labourers and low-income groups engage in various unregulated economic activities. Key issues such as inadequate infrastructure, lack of legal recognition, and financial instability are prevalent among informal workers. The review also examines the role of land-use policies, industrial clusters, and micro-finance in sustaining the informal economy. Additionally, it sheds light on the socioeconomic status of women entrepreneurs and the systemic exclusion of informal labor from regional planning. The findings underscore the need for inclusive policies that integrate the informal economy into the broader urban development framework, ensuring social protection and economic sustainability for informal workers in NCR towns like Sohna.

Keywords: Informal Economy, NCR Towns, Sohna, Urbanization, Migrant Labor, Microfinance, Land Use, Women Entrepreneurs, Regional Planning, Economic Sustainability