Informal Employment
MoSPI survey says unincorporated sector employed 128 million workers 2025, up 6%
This story was originally published at 17:18 IST on 24 March 2026
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--MosPI releases results of unincorporated sector enterprises survey 2025
--MoSPI:Number of unincorporated sector enterprises rose to 79.2 mln in 2025
--CONTEXT:Number of unincorporated units were 73.4 mln in Oct 2023-Sept 2024
--MoSPI: Unincorporated sector GVA in 2025 rose 11% from Oct 2023-Sept 2024
--MoSPI: Employment in informal sector in 2025 rose 6% vs Oct 2023-Sept 2024
NEW DELHI – India's unincorporated sector employed 128.05 million workers in 2025, up 6.2% from 2023-24 (Oct-Sept), according to the results of the Annual Survey of Unincorporated Sector Enterprises released Tuesday. The number of unincorporated establishments and the gross value added by such units also rose in 2025, according to the results of the survey, which moved to a calendar year from the Oct-Sept period.
The first Annual Survey of Unincorporated Sector Enterprises was conducted during the financial year 2021-22 (Apr-Mar). The second round was held from October 2022 to September 2023. The survey's primary objective is to collect information on operational, financial, and structural characteristics of unincorporated non-agricultural enterprises. The results serve as key inputs for policymakers.
Rural areas led the rise in employment, with the number of workers employed increasing 6.9% in 2025 from 2023-24. In urban areas, the number of workers employed rose 5.6%.
"The comparative estimates show overall expansion of the unincorporated non-agricultural sector in ASUSE 2025 over ASUSE 2023–24 across both rural and urban areas," the ministry said. "While rural areas recorded higher growth in employment and GVA (gross value added), the growth in the number of establishments was stronger in urban areas."
The informal manufacturing sector saw a slower increase in employment in 2025 compared with trade and other services categories. The number of workers employed rose 3.6% in the manufacturing sector in 2025 over 2023-24, while workers increased 6.9% in the trade sector and 7.4% in the other services sector.
The number of unincorporated establishments grew 8% to 79.2 million in 2025 from 73.4 million in 2023-24. The gross value added by unincorporated sector establishments rose 10.9% at current prices during 2025 from 2023-24, the survey results showed.
Among the broad sectors covered--manufacturing, trade, and other services--the number of establishments in the "other services" sector rose 10.3%, followed by a 6.5% increase in the manufacturing sector. "This increase reflects broad-based expansion across sectors and highlights the steady growth of the unincorporated non-agricultural sector," the statistics ministry said.
The gross value added per worker, a measure of labour productivity, rose 4.5% in 2025 to INR 156,539 from INR 149,742 in 2023-24. The gross value of output per establishment increased to INR 467,784 in 2025 from INR 491,862 in 2023-24.
The average emoluments per hired worker increased 3.9% to INR 146,550 in 2025 from INR 141,071 in 2023-24, signalling a modest rise in wage levels. The highest increase in this metric was observed in the trade sector, which recorded a growth of about 8.5%.
The percentage of female-owned proprietary establishments increased to 27 in 2025 from 26.2 in 2023-24. This suggested gradual but steady progress in women's participation in enterprise ownership, the ministry said.
The percentage of establishments using the internet jumped to 39.4 in 2025 from 26.7 during 2023-24. "This substantial growth reflects a strong trend toward digital adoption among establishments, highlighting the increasing reliance on the internet for business operations," the ministry said. End
Reported by Shubham Rana
Edited by Rajeev Pai
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