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Informist, Thursday, May 21, 2026

 

--MoSPI: Unincorporated sector establishments up 16.7% YoY at 91.6 mln in Q4

--CONTEXT: MoSPI releases unincorporated sector survey results for Jan-Mar

--MoSPI: Workers in unincorporated sector up 15.5% YoY at 151.7 mln in Q4

 

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

 

The number of establishments in the unincorporated non-agricultural sector rose 16.7% on year to 91.65 million in the March quarter. The rural sector emerged as the primary driver of growth, with a 20.5% on year rise, survey results showed. The number of informal establishments in the urban sector rose 12.6% on-year in Jan-Mar.

 

The sector employed 151.71 million workers in the March quarter, up 15.5% from 131.34 million a year ago, survey results showed. This is the first time employment in the informal sector topped the 150 million mark, the ministry said. The sector recorded a year-on-year growth of 15.5% over the corresponding quarter of the previous year, "highlighting its growing significance in generating employment opportunities for a large section of the population across sectors."

 

The statistics ministry now conducts a quarterly survey of unincorporated-sector enterprises, compared with annual surveys earlier. 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 March quarter. Working owners accounted for 61.0% of total workers in the informal sector, compared with 58.3% in the corresponding quarter of the previous year, according to the survey. The share of hired workers slipped to 24.8% in Jan-Mar from 26.9% a year ago.

 

The female workforce in the informal sector increased in the March quarter, constituting more than 29% of total employment in the sector. 

 

The services sector continued to drive the unincorporated economy, with the number of establishments increasing by 24.8%. The workforce in the sector grew 31.1% over the same period, the survey showed. "The strong expansion of the services sector within the unincorporated economy reflects rising entrepreneurial activity in this sector, its growing role as a key driver of employment and increasing demand for local services," the ministry said. The services sector accounted for 44% of the total unincorporated establishments, followed by the trade sector at 29% and the manufacturing sector at 27%.

 

The use of the internet among the unincorporated non-agricultural sector grew in the March quarter. Around 81% of establishments in the sector used the internet for entrepreneurial purposes during the reported quarter, the ministry said. In addition, 81% of establishments have adopted cashless modes of transaction during the quarter, it added.  End

 

Reported by Shweta

Edited by Saji George Titus

 

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