Situation analysis on the COVID-19 pandemic's impact on enterprises and workers in the formal and informal economy in India

To enable evidence-based social dialogue for designing and implementation of policies and programmes responding to COVID-19 pandemic, the ILO-India prioritised situation analysis of enterprises and workers from three States of the country.

The ILO’s four-pillar policy framework, based on international labour standards, for tackling the socio-economic impact of the COVID-19 crisis underlines the need for rapid and well-designed policy measures to support enterprises, jobs and incomes.

The effectiveness of policy and programme responses necessitates evidence-based social dialogue throughout designing and implementation. Thus, this situation analysis study was prioritized for three States - Maharashtra, Tamil Nadu, and Uttar Pradesh. These States account for a substantial proportion of the country's MSME units and were also most affected by reverse migration. The data collection undertaken during October 2020 – January 2021 focussed on: 1) Impact on MSMEs, employers and workers in the informal and formal economy, due to COVID-19 related market disruptions and 2) Employers’ and workers’ coverage and access to policy measures announced in response to COVID-19 pandemic.

Building on the study findings, ILO will work closely with its constituents in India, to design more focused interventions to improve access of MSMEs to relief measures and workers to social protection and good working conditions in enterprises, alongside re- and up-skilling and alternate livelihoods.