(a)OR(b)

“It is necessary to create employment in the formal sector rather than in the informal sector.”

Defend or refute the given statement with valid arguments.

The statement is defended. The formal sector provides regular income and greater job security as compared to the informal sector. Workers under the formal sector are entitled to social security benefits like provident fund, social security etc. unlike the informal sector.

The need for diversification arises from the fact that there is a greater risk in depending exclusively on farming for livelihood. Expansion into other related sectors is desirable to provide supplementary gainful employment and in realising higher levels of income for rural people. Hence, there is a need to diversify through focus on allied activities, non-farm employment and other emerging alternatives of livelihood providing sustainable livelihoods in rural areas.