Informal economy to the rescue?

From The Age articleSlum economy offers hope in Delhi by Matt Wade:
"The Indian economy relies much less on exports than other developing countries and so is much less exposed to the collapse in consumer demand in the US and Europe.

Exporters have been hit much harder and there are reports that hundreds of thousands of jobs have been lost.

This eventually might threaten micro-manufacturers such as Kalimuddin, as export-oriented garment makers shift their product to the domestic market and drive down prices.

Naeem and Kalimuddin operate in the vast "informal economy", meaning they are outside the purview of the tax system, corporate regulation and labour laws.

Tens of millions of informal-sector workers are vulnerable to exploitation but the economy benefits from their vague employment status.

Delhi economist Dr Kanhaiya Singh says they will help cushion Indian from the global slump. "The labour market is highly flexible in the informal sector — it can adjust very quickly," he says."