Q. Consider the following statements:

1. All the public sector establishments by default come under the definition of organised sector.
2. Only those private organisations which hire more than 100 workers can be covered under the definition of organised sector.

Which of the above is / are correct?
Answer: Only 1
Notes: Only the first statement is correct. All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments and those who work in such establishments are formal sector workers. All other enterprises and workers working in those enterprises form the informal sector.