- GST (Goods and Services Tax):
- GST regime is good at formalizing areas where formal sector interacts with informal.
- Incentivizes formal sector to bring informal supply chain into tax net for input tax credit.
- Thousands of informal MSMEs have registered for GST.
- Brought informal enterprises into formal economy, curbed tax evasion.
- Digital India:
- The text implies that digital initiatives (like GST’s IT infrastructure) support formalization.
- It mentions that many informal firms lack digital literacy, which is a challenge.
- New Labour Codes:
- Code on Social Security proposes benefits for unorganized workers.
- Aims for universalization of social security.
- Occupational Safety Code makes employment letter a must, promoting formalization.