The share of the informal sector in India’s economy fell drastically to 15-20 per cent in 2020-21 from 52.4 per cent in 2017-18 due to digitisation and the rapidly expanding gig economy, according to a study by SBI Research. “Currently, the informal economy is possibly at maximum 15-20 per cent of gross value added (GVA)," said Soumya Kanti Ghosh, group chief economic advisor, SBI. The share stood at 53.9 per cent in 2011-12.

       As such, the formalisation of the economy crawled between 2011-12 and 2017-18 but gathered pace between 2017-18 and 2020-21. However, ...