How is India's informal sector thriving amid global challenges?
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Synopsis
India's informal sector is defying global economic challenges with notable growth in establishments and employment. Discover how this sector is expanding and what it means for the future of India's economy.
Key Takeaways
- The unincorporated non-agricultural sector in India has seen significant growth.
- Establishments increased from 7.34 crore to 7.97 crore year-on-year.
- Employment has risen to nearly 12.86 crore.
- Internet usage in the sector has steadily increased.
- Women represent 28.7% of the workforce in this sector.
New Delhi, Nov 25 (NationPress) The unincorporated non-agricultural sector in India has witnessed a significant expansion in both the number of businesses and total employment during the July-September quarter of 2025, compared to the same period last year, as highlighted in a report by the Ministry of Statistics released on Tuesday.
The total count of establishments surged to 7.97 crore in the July-September quarter, up from 7.34 crore the previous year, also surpassing the 7.94 crore establishments noted in the earlier April-June quarter of 2025.
Employment in this sector reached nearly 12.86 crore, showing a substantial increase from just over 12 crore workers recorded during the same timeframe last year.
Internet usage among enterprises in this sector rose steadily, climbing from 36 percent in April-June 2025 to 39 percent in July-September 2025.
The share of establishments employing hired workers in the unincorporated non-agricultural sector was noted at 13.41 percent this quarter, reflecting a slight increase from the previous quarter.
Owner-operated businesses accounted for the largest segment at 59.98 percent, similar to earlier quarters, while the share of hired workers increased from 24.38 percent in April-June to 25.91 percent this quarter.
The estimated urban workforce grew from 6.61 crore in the last quarter to 6.91 crore this quarter, indicating a boost in employment opportunities and enhanced economic activities in urban settings.
This quarter reflected a significant rebound in the unincorporated manufacturing sector, with improvements in both employment and establishment counts. The share of manufacturing establishments increased from 26 percent to 27 percent, with employment rising from 26 percent to 28 percent.
Notably, the participation of women in the workforce remained strong, making up 28.7 percent of total employment in this sector, according to the released statement.
Point of View
I observe that while the informal sector is experiencing growth, it remains essential to address the challenges that accompany this expansion to ensure sustainable development and support for workers involved in this sector.
NationPress
25/11/2025
Frequently Asked Questions
What is the growth rate of the informal sector in India?
The informal sector in India has recorded robust growth, with establishments increasing from 7.34 crore to 7.97 crore and employment rising from over 12 crore to approximately 12.86 crore in the July-September quarter of 2025.
How has internet usage changed in the informal sector?
Internet usage among enterprises in India's informal sector climbed from 36 percent in April-June 2025 to 39 percent in July-September 2025, indicating a trend towards digital engagement.
What is the percentage of women in the workforce?
Women constitute 28.7 percent of the total employment in the informal sector, reflecting their significant contribution to this area.
What sectors are included in the informal sector?
The informal sector primarily includes unincorporated non-agricultural enterprises, which encompass various small businesses and self-employed individuals.
How does urban workforce growth reflect economic conditions?
The increase in the urban workforce from 6.61 crore to 6.91 crore signifies a positive trend in employment opportunities and economic activity in urban areas.
