The unincorporated non-agricultural sector in India employed over 120 million workers between October 2023 and September 2024, marking an increase of more than 10 million workers from the previous year, according to data released by the Ministry of Statistics on Wednesday. This reflects a robust 10.01 percent growth in the labor market.
The Annual Survey of Unincorporated Sector Enterprises (ASUSE 2023-24) data reveals that more than one-third of this workforce was engaged in the states of Uttar Pradesh, Maharashtra, and West Bengal. The proportion of female workers to total workers increased from 25.63 percent in ASUSE 2022-23 to 28.12 percent in ASUSE 2023-24. About 58 percent of the establishments in the manufacturing sector were headed by female proprietors during the survey period, the ministry reported.
The total number of establishments in the sector rose substantially from 65 million in 2022-23 to 73.4 million in 2023-24, representing a healthy 12.84 percent growth. The unincorporated non-agricultural sector is crucial to the Indian economy, absorbing a significant portion of the country’s workforce, providing employment opportunities to a diverse range of people, and contributing to the country’s Gross Domestic Product (GDP).
Among the broad sectors covered, the number of establishments in the “Other Services” sector recorded a growth of 23.55 percent, followed by a 13 percent increase in the manufacturing sector. Approximately 39 percent of the establishments were engaged in either retail trade (around 27 percent) or manufacturing of wearing apparel (around 12 percent) according to ASUSE 2023-24.
Among the major states, the highest number of establishments, both rural and urban combined, were reported in Uttar Pradesh, followed by West Bengal and Maharashtra during the same period. The Gross Value Added (GVA), a key indicator of economic performance, rose by 16.52 percent, driven by a 26.17 percent growth in the other services sector. The top three states in terms of GVA were Maharashtra, Uttar Pradesh, and Gujarat during ASUSE 2023-24.
Among the activity categories, other retail trade, manufacturing of wearing apparel, and other community, social, and personal services reported the most number of establishments and engaged the maximum number of workers at the all-India level in ASUSE 2023-24. The percentage of registered establishments increased marginally from 36.80 percent in ASUSE 2022-23 to 37.20 percent in ASUSE 2023-24, showing an increasing trend of registration in the sector.
The use of the Internet for entrepreneurial purposes increased from 13.50 percent in 2022-23 to 17.90 percent in 2023-24 in rural areas and from 30.20 percent to 37 percent in urban areas. Overall, it increased from 21.10 percent to 26.70 percent during ASUSE 2023-24 compared to ASUSE 2022-23, according to the Ministry’s factsheet. Among the broad activity categories, about 35 percent of trading establishments used the Internet for entrepreneurial purposes, an increase of 10 percentage points from ASUSE 2022-23. This substantial growth reflects a strong trend toward digital adoption among establishments, highlighting the increasing reliance on the Internet for business operations.
There has been greater prosperity in the informal sector as fixed assets owned by an unincorporated non-agricultural establishment, on average, rose from $3,180 in ASUSE 2022-23 to $3,240 in ASUSE 2023-24, showing improved capital investment in the sector. At the same time, the outstanding loan per establishment increased from $501.38 in ASUSE 2022-23 to $537.10 in ASUSE 2023-24, indicating an improvement in the availability of loans in this sector.
