This study tries to comprehend the facets of the increasing informalisation of work in India. It uses a deductive approach to analyse the secondary data and literature on the subject. Informalisation of the workforce is not a unique phenomenon restricted to India. Reforms have expedited the informalisation of work in India, which has a detrimental impact on the nature of newly created jobs. The empirical evidence from the National Sample Survey (2017–2018), Annual Survey of Industries (2016–2017 and 2021–2022), India Human Development Survey rounds (2003–2004 and 2011–2012), and International Labour Organisation (2018) showcases increasing informalisation of work. This has made the situation for workers and working conditions highly precarious with the changing nature of employment.

Government and non-government agencies in India are working towards empowering people at the grassroots through the provision of microfinance. Self-help groups have emerged as instruments of change for poor people (women in particular) trying to solve their problems collectively with financial assistance or through commercial activities. Detailed data are examined on the impact of microfinance-led inclusive socioeconomic change based on the social systems in the state of Gujarat. Microfinance plays an important role in sustainable economic development in India.