explain why self employment continues to be a significant source of livelihood in India

Dear Student,

The following reasons make self-employment an important source of livelihood in India:

1. Low literacy rate - This makes acquisition of skills prevent them from being gainfully employed.
2. India being an underdeveloped economy - It is because of this reason that India is not able to generate enough employment opportunities for its citizens. As a result, a large section of people resort to self-employment.
3. Imperfect labour mobility - Cultural, language and traditional differences obstruct the migration and mobility of people from one part of the country to another in search of better avenues.

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self employment continues to be a significant source of livelihood in India because not every single person can be provided employment in the organised sector and even in the informal sector there is no job security and protection laws for labourers so self employment opportunities like micro industries  can be very helpful in providing employment.
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