Has Employment in India’s Unincorporated Sector Surpassed 13 Crore?
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Synopsis
Discover how India's unincorporated non-agricultural sector has made remarkable gains, surpassing 13 crore in employment for the first time. This article explores the significant rise in establishments, the role of women, and the digital transformation within this vital sector, shedding light on its impact on the economy.
Key Takeaways
- Employment surpasses 13 crore in unincorporated sector.
- Women make up over 28% of the workforce.
- 7.94 crore establishments recorded in April-June 2025.
- Shift towards self-employment and owner-driven businesses.
- Increased internet usage reflecting digital adoption.
New Delhi, Sep 3 (NationPress) Recent data reveals that both establishments and employment in India’s unincorporated non-agricultural sector have surged significantly during the January-March and April-June quarters of 2025 compared to the figures in the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24, as disclosed by the Ministry of Statistics on Wednesday.
For the first time, employment in the unincorporated non-agricultural sector exceeded the 13 crore milestone in January-March 2025, reaching 13.13 crore—surpassing all previous ASUSE annual estimates that had consistently remained below this mark. However, this number slightly decreased to 12.86 crore in the April-June quarter. The employment figures for the unincorporated sector in both quarters showcase a notable increase over the ASUSE 2023-24 annual estimate of slightly above 12 crore workers, highlighting a significant rise in overall employment within this sector, according to an official statement.
Women represented over 28 percent of the workforce in both quarters, underscoring the sector's vital role in promoting gender-inclusive growth and entrepreneurship. This percentage is a slight increase from that noted in ASUSE 2023-24.
The total count of establishments in the unincorporated non-agricultural sector climbed to 7.94 crore during April-June 2025, up from 7.85 crore in the previous quarter. This growth was primarily driven by the trade sector, which saw a 3.63 percent rise, along with other services that increased by 3.13 percent.
Changes in employment estimates during April-June 2025 are largely attributed to a decline in the number of establishments hiring workers and a moderate performance in the unincorporated manufacturing sector, where the share of manufacturing employment fell by over 2 percentage points compared to the prior quarter, as stated.
The percentage of working owners jumped from 58.29 percent in the January-March quarter to 60.18 percent in the next quarter, indicating a shift towards self-employment and entrepreneurial ventures. This transition was particularly pronounced in manufacturing, where the share of hired workers experienced the steepest decline, coupled with the highest increase in working owners, reflecting a robust transition towards owner-driven enterprises, the statement elaborated.
The rural workforce expanded from 5.97 crore to 6.25 crore during this timeframe, highlighting the increasing significance of unincorporated enterprises in rural economic activities, according to the statement.
During the April-June 2025 quarter, there was an uptick in internet usage among unincorporated enterprises, rising to 36.03 percent from 34.20 percent in the previous quarter, marking the sector’s gradual digital adoption. This trend indicates that more and more establishments are utilizing online platforms for business operations and transactions, showcasing the growing digital integration within these enterprises, the statement further noted.
Point of View
It’s vital to recognize the growing significance of the unincorporated sector in India’s economy. The recent employment figures indicate not just recovery but a potential paradigm shift toward self-employment and digital adoption, which are crucial for sustainable growth. The sector's increasing female participation also signifies a move towards inclusivity, ensuring that diverse voices are represented in India’s economic narrative.
NationPress
03/09/2025
Frequently Asked Questions
What is the current employment figure in India's unincorporated sector?
As of April-June 2025, the employment in India's unincorporated non-agricultural sector stands at approximately 12.86 crore, following a peak of 13.13 crore in January-March 2025.
How many establishments are there in the unincorporated sector?
The total number of establishments in the unincorporated non-agricultural sector rose to 7.94 crore in April-June 2025.
What role do women play in this sector?
Women constitute over 28 percent of the workforce in both quarters, reflecting the sector's role in promoting gender-inclusive growth.
What are the driving factors behind the employment increase?
The increase is attributed to growth in the trade and services segments, along with a notable shift towards self-employment and owner-driven enterprises.
How is digital adoption progressing in this sector?
The use of the internet among unincorporated enterprises increased to 36.03 percent in April-June 2025, indicating a gradual digital transformation.
