Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?

Workers and enterprises in the informal sector do not get regular income. They do not have any protection or regulation from the government. Workers are dismissed without any compensation. Technology in informal sector is outdated. Workers in this sector live in slums. The informal sector enterprises do not maintain accounts. So it is necessary to generate employment in the formal sector rather than informal sector. Now Indian government has initiated the modernisation of informal sector enterprises and provision of social security measures to informal sector workers.