No. 5(2)/2004-ICC
Government of India
Ministry of Small Scale Industries

 New Delhi, the 20th  September, 2004


 Subject:      Constitution of a National Commission on Enterprises in the Unorganised/Informal Sector.

           United Progressive Alliance Government had committed in its Common Minimum Programme to set up a National Commission on Enterprises in the Unorganized/Informal Sector, accordingly the Government has decided to set up the National Commission on Enterprises in the Unorganized/Informal Sector as an advisory body and a watchdog for the informal sector.  The Commission will recommend measures considered necessary for bringing about improvement in the productivity of these enterprises, generation of large scale employment opportunities on a sustainable basis, particularly in the rural areas, enhancing the competitiveness of the sector in the emerging global environment, linkage of the sector with institutional framework in areas such as credit, raw material, infrastructure, technology upgradation,  marketing  and formulation of suitable arrangements for skill development.

 2.       The Commission will have the following composition :

           Dr. Arjun Sengupta          -          Chairman in the rank of Cabinet Minister.

           Dr. K. Jaishankar,           -          Full time Member in the rank of
           Former Vice Chancellor,             Secretary to the Government of India.
           Warangal University         

 Another full time Member and a Member Secretary in  the rank of Secretary to the Government of India will be appointed later.  In addition, some part time members would be included later on.

 3.       The terms of reference of the Commission will be as follows :

  1. Review of the status of unorganized/informal sector in India including the nature of enterprises, their size, spread and scope, and magnitude of employment;

  2. Identify constraints faced by small enterprises with regard to freedom of carrying out the enterprise, access to raw materials, finance, skills, entrepreneurship development, infrastructure, technology and markets and suggest measures to provide institutional support and linkages to facilitate easy access to them;

  3.  Suggest the legal and policy environment that should govern the informal/unorganized sector for growth, employment, exports and promotion;

  4.  Examine the range of existing programmes that relate to employment generation in the informal/unorganized sector and suggest improvement for their redesign;

  5. Identify innovative legal and financing instruments to promote the growth of the informal sector;

  6.  Review the existing arrangements for estimating employment and unemployment in the informal sector, and examine why the rate of growth in employment has stagnated in the 1990s;

  7. Suggest elements of an employment strategy focussing on the informal sector;

  8. Review Indian labour laws, consistent with labour rights, and with the requirements of expanding growth of industry and services, particularly in the informal sector, and improving productivity and competitiveness; and

  9. Review the social security system available for labour in the informal sector, and make recommendations for expanding their coverage.

 4.       The Commission will devise its own procedures and may consult such officers as it may consider necessary.  It may commission studies as may be required from  time to time.  It may also call for such information and take such evidence as it may consider necessary.  The Ministries/Departments of the Government of India and of States/UTs will furnish such information, documents and other assistance as may be required  by the Commission.

 5.       The term of the Commission will be for a period of one year.  The Commission will submit periodic reports to the Government. 


(Stuti Kacker)
Joint Secretary to the Government of India


 Ordered that the Resolution be published in the Gazette of India.  
 Ordered also that a copy of the Resolution be communicated to the Ministries/ Departments of the Government of India, State Governments / Administration of Union Territories and all other concerned.                

(Stuti Kacker)
Joint Secretary to the Government of India