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Informist, Friday, Aug. 21, 2026

 

--MoSPI: Unincorporated sector establishments up 9.2% YoY at 86.7 mln in Q1

--CONTEXT: MoSPI releases unincorporated sector survey results for Apr-Jun

--MoSPI: Workers in unincorporated sector up 6.6% YoY at 137 mln in Q1

 

NEW DELHI – The number of establishments and overall employment in India's informal sector recorded healthy on-year growth in the June quarter, primarily driven by the urban sector, according to the Quarterly Bulletin of Unincorporated Sector Enterprises released by the Ministry of Statistics and Programme Implementation on Friday. 

The number of establishments in the unincorporated non-agricultural sector rose 9.2% on year to 86.7 million in Apr-Jun. The urban sector emerged as the primary driver of growth, with a 15.3% on-year rise, survey results showed. The number of informal establishments in the rural sector rose 3.9% on year in the June quarter.

 

The sector employed 137 million workers in the June quarter, up 6.7% from 128.87 million a year ago, survey results showed. "This growth was primarily driven by the services sector, which recorded an increase of over 21% in its estimated workforce," the ministry said in a release.

 

The statistics ministry now conducts a quarterly survey of unincorporated-sector enterprises, compared with annual surveys earlier. The quarterly data aims to capture short-term movements in the sector. The last annual survey, held in 2025, showed the informal sector employed 128.05 million workers, up 6.2% from a year earlier.

 

The informal sector continued to see the largest share of participation from working owners in the June quarter. Working owners accounted for 62.4% of total workers in the informal sector, compared with 60.2% in the corresponding quarter of the previous year, according to the survey. The share of hired workers declined to 22.8% in Apr-Jun from 24.4% a year ago.

 

"The urban sector outperformed the rural sector in employment growth during April–June 2026, registering a robust year-on-year growth of over 12%, compared with 0.70% growth in rural sector," the release said.

 

The female workforce in the informal sector increased in the June quarter, constituting more than 30% of total employment in the sector. "The gradual increase in percentage share of female workers highlights the growing importance of the sector in generating employment opportunities for women and promoting inclusive economic participation," the ministry said.

 

The services sector continued to drive the unincorporated economy, with the number of establishments increasing 21% on year. The services sector accounted for 47% of the total unincorporated establishments, followed by the trade sector at 27%, and the manufacturing sector at 26%.

 

The workforce in the sector also grew 21% over the same period, the survey showed. However, the trade sector saw a decline of 10.3% on year in its workforce in Apr-Jun and a fall of 7.9% in the number of establishments.

 

"While the survey does not provide information on the specific factors underlying these changes, it is worth noting that the retail landscape has been undergoing significant transformation, including the expansion of e-commerce and quick-commerce platforms, alongside global economic challenges," the ministry said.

 

The use of the internet in the unincorporated non-agricultural sector grew in the June quarter. Around 82% of establishments in the sector used the internet for entrepreneurial purposes during the reported quarter, the ministry said. In addition, nearly 80% of establishments adopted cashless modes of transaction during the quarter, it added.  End

 

Reported by Shweta

Edited by Avishek Dutta

 

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