SBI report says 80% of economy turned formal following digitisation drive, pandemic

The digitisation drive and pandemic-induced emergence of the gig economy have led to a faster formalisation of the economy, with the share of the informal sector shrinking to just 15-20% in 2021 from 52.4% in 2018, according to an SBI Research report. Share of the informal economy has fallen drastically to 15-20% of the GVA in 2020-21 from 52.4% in 2017-18 due to digitisation and the rapidly expanding gig economy, said Soumya Kanti Ghosh.