Social Sciences, asked by immeetmodi1258, 1 year ago

Why is the unorganized sector predominant in India? Explain the reasons.

Answers

Answered by shubham610
0

Explanation:

Unorganized sector is predominantly cash-based, which contributes majorly to the tax evasion and black money. When it comes to black money, it is estimated at around 24% of the GDP. This directly deprives the government of taxes and hampering developments.

A low tax base due to the unorganized sector directly leads to lower tax revenue, means that the government becomes more vulnerable for borrowing.

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