India's Informal Sector Sees 10% Employment Growth with 1 Crore New Jobs in 2023-24

New Delhi, Jan 29 (NationPress) The unincorporated non-agricultural sector has employed over 12 crore workers from October 2023 to September 2024, showcasing an increase of more than one crore workers compared to 2022-23, reflecting a strong 10.01 per cent growth in the labor market, as per data released by the Ministry of Statistics on Wednesday.

This data, part of the Annual Survey of Unincorporated Sector Enterprises (ASUSE 2023-24), indicates that over one-third of this workforce is engaged in the states of Uttar Pradesh, Maharashtra, and West Bengal.

The ratio of female workers to total workers has risen from 25.63 per cent in ASUSE 2022-23 to 28.12 per cent in ASUSE 2023-24. Approximately 58 per cent of the establishments were led by female proprietors in the manufacturing sector during the survey period, according to the ministry.

The overall number of establishments in the sector has significantly increased from 6.5 crore in 2022-23 to 7.34 crore in 2023-24, reflecting a healthy 12.84 per cent growth.

The unincorporated non-agricultural sector plays a crucial role in the Indian economy, mainly due to its capacity to absorb a large portion of the workforce, its inclusivity in providing employment opportunities to diverse demographics, and its contributions to the country's Gross Domestic Product (GDP).

Among the various sectors, the number of establishments in the Other Services sector noted a growth of 23.55 per cent, followed by a 13 per cent increase in the manufacturing sector.

About 39 per cent of the establishments in this sector were involved in either retail trade (approximately 27 per cent) or manufacturing of wearing apparel (about 12 per cent) as reported in ASUSE 2023-24.

Uttar Pradesh, followed by West Bengal and Maharashtra, reported the highest number of establishments, both in rural and urban areas, during the same period.

The Gross Value Added (GVA), a vital indicator of economic performance, surged by 16.52 per cent, driven by a 26.17 per cent 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, followed by manufacturing of wearing apparel and other community, social, and personal services, reported the highest number of establishments and the most engaged workers at the all-India level in ASUSE 2023-24.

The percentage of registered establishments has shown a slight increase from 36.80 per cent in ASUSE 2022-23 to 37.20 per cent in ASUSE 2023-24, reflecting a growing trend of registration in the sector.

The utilization of the Internet for entrepreneurial purposes has risen from 13.50 per cent in 2022-23 to 17.90 per cent in rural areas, and from 30.20 per cent to 37 per cent in urban areas.

Overall, this increased from 21.10 per cent to 26.70 per cent during ASUSE 2023-24 compared to ASUSE 2022-23, as per the Ministry's factsheet.

Among the broad activity categories, around 35 per cent of trading establishments used the Internet for entrepreneurial purposes, marking an increase of 10 percentage points from ASUSE 2022-23.

This remarkable growth signifies a strong trend towards digital adoption among establishments, emphasizing the increasing reliance on the internet for business operations.

There has been enhanced prosperity in the informal sector as the value of fixed assets owned by an unincorporated non-agricultural establishment has increased from Rs 3.18 lakh in ASUSE 2022-23 to Rs 3.24 lakh in ASUSE 2023-24, indicating improved capital investment in the sector.

Simultaneously, the Outstanding Loan per establishment has risen from Rs 50,138 in ASUSE 2022-23 to Rs 53,710 in ASUSE 2023-24, pointing to better availability of loans in this sector.