Informal economies drive significant GDP and employment in India and Namibia

The informal economy plays a critical role in the development of emerging economies, particularly regarding employment and GDP contribution. In India, a vast migrant workforce contributes approximately 10% of the national GDP, working across sectors such as construction, manufacturing, and hospitality. Estimates of these circular migrant workers range from 63 million in 2018 to 250 million in 2020. These workers often face significant housing precarity, residing in informal rentals or temporary colonies that lack adequate sanitation and security due to urban planning biases.

In Namibia, the informal sector is a major economic driver, accounting for an estimated 26.5% of the GDP and employing nearly 60% of the workforce. During the inauguration of the first National Steering Committee on the Informal Economy in Windhoek, Industries, Mines and Energy Minister Modestus Amutse emphasized that the sector is essential for industrialization. The informal economy in Namibia is valued at approximately US$13 billion in purchasing power parity, with nearly 60% of its activity located in rural areas, providing vital livelihoods for women and young people.