[loazy12]

The informal sector plays a significant role in Indian. why?

[Igor Antunov]

The black market? Well yes, mainly because the government doesn't influence much control over so many parts of society, so people are free to go under the radar without consequence.

[Philby]

The informal sector plays a significant role in Indian. why?

Uhhh, what is exactly "the informal sector" ?

In Italy it's called the maffia, and it has a rather important role in society. Ask Silvio.

[Wolfman]

^ Generally the informal sector is any economic movement not taxed. So, this is obviously illegal activities, as well as hiring a friend to do some yard work, selling lemonade, and most housewares. Feminist Economist say that the majority of legal informal economic movement is done by women, and some have estimated the GDP if the informal sector was counted.

@ The OP: The informal sector is a major aspect of all 3rd world, and most 2nd world countries, India (being 2nd World) is no exception.