The 90% of unorganised/informal economy is done in cash but that is not mostly "black-money" , it is "white" as most people earn much below the annual taxable incomes but not passing via banks or post office accounts .
So there is not just "White" or "Black" money in India , there is "White" which is not in mainstream financial systems .
This "Demonetisation Gambit" is making all Cash seem Black. Nothing could be further from the truth .
I call this Cash Economy which is what maybe almost 80-90% of Indians live in , neither "White" nor "Black" . This is the "Green" Money .
That has very small enterprises , minimum working capital mostly below Rs.10 lacs , employ the family and 2-20 people , is sustainable and small , in fact tiny or micro enterprise is the word .
For India we need another category that mainstream economists have not categorised .
I will call it "Green Money "
This essay was written in September , 2016.
India is not a simple Public-Private sector dualism.
India has so many types of business enterprises , with each sector or industry having its own unique realities .
For example in Milk we have MNC's , Public, Big Private , Big Cooperative , Small Private and Coops , as well as the Doodhwallah .
In textiles we have Mills , Powerlooms , Handlooms , Khadi , Hosiery at all levels of scale, from a single family to thousands of employees in an integrated mill .
I am personally always curious how is data of the various sectors collected and by whom .
From MSME to PSU to Cooperatives to Informal sector , the number of state , private , Non-profit institutions taking out research and reports are many .
Of the about 50 million employed in Organised Sector India , in Government and Public Sector ( 18-20 million ) Private Corporate Sector ( 10-12 million) Cooperative Sector (18-20 million) you can see the Private accounts for just 20-24% odd , and of the 500 million workforce , the whole Organised is about 10% !
So 90% will not even feature in any employment statistics , nor what they do , in detail.
There is never in India , a dearth of opinions , but also there is no dearth of data. Always conflicting.
All of us are so occupied within our silos of industry and occupation , and the complexity of Indian Enterprise pluralism is so much , that no one even attempts an understanding . As even the data , the non-reported is probably a higher percentage than the reported .
Look at the National Cooperative Union of India report of 2011-12.
According to them , even in the Organised sector , the employment in cooperatives in India , equals the Public Sector (That is Government employment at all levels ) at about 18 million each .
The private sector just about reaches 11 million ! ...