Women are playing a significant role in occupying this sector to earn and manage their families. Mostly, these women are migrants from various villages of India and are illiterate. Due to the inability to secure formal jobs in the city, the unavailability of decent employment opportunities became a key factor in the growth of the informal sector. This paper has been prepared in the following manner: an introduction section with important concepts and a background. The second section emphasises key objectives and research methodology of the paper. The last section comprises a literature review, analysis, discussion, conclusion, and scope for future work. The country’s employment and livelihood in rural and urban areas depend on informal sector activities in India. A greater segment of people who have been employed in the unregulated sector belong to socially and economically vulnerable sections in the urban areas. Among these informal sector employees, more than 90 per cent earn a very thin wage. The economic conditions of the informal sector workers were severely affected due to the pandemic and the country-wide lockdown. Informal sector workers were not able to move from their residences to the workplace due to the stoppage of private and public transport. These workers are facing numerous challenges as informal sector workers, such as poor wage rates, long work hours, a lack of social security measures, and poor working conditions. There are various avenues for the development of informal workers in India. The Union government and various state governments framed various protection policies for the betterment of the unorganised and casual labourers in India. Women are concentrated more than men in informal employment across all the states of India. It shows the significance of female workers in economic activity and income generation in the unorganised sector.