ABSTRACT Unorganized Sectors are being supported by the Government through several schemes as they play a crucial role in boosting the country’s economy. These Sectors are full of high potential as employment generators especially in the rural India and also perform a number of crucial functions that support development and poverty alleviation. The Government Agencies have been playing a key role in promoting unorganized sectors across the country through implementation of various schemes and policies ranging from providing collateral-free credit and access to incubation centres to providing better equipment and employment opportunities for entrepreneurs. The inherent advantages of these unorganized sectors are optimal utilization of local resources, mobilization of investments on a large scale, creation of job opportunity, prevention of distress rural-urban migration and reduction of disparity across sectors and regions. The Covid-19 pandemic and its unprecedented danger have forced the entire world to announce nationwide lockdown affecting unorganized sector adversely. This pandemic affected workers of unorganized sectors, left them jobless and rapidly increased the unemployment rate across the country. To address financial difficulties faced by unorganized sector, a package of Rs1,610 crores will be released by the Government as Covid-19 financial package