India’s unincorporated non-agricultural sector has experienced notable expansion in both the number of establishments and employment during the first two quarters of 2025. New official data from the Ministry of Statistics reveals a robust rise compared to previous annual estimates, signalling an evolving landscape of informal economic activity.
For the first time, employment in this sector crossed the 13 crore threshold in the January-March quarter of 2025, reaching 13.13 crore workers. Although it dipped slightly to 12.86 crore in the following April-June quarter, both figures remain well above the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023-24 annual estimate of just over 12 crore. This surge points to an overall increase in jobs within unincorporated enterprises, underscoring the sector’s growing contribution to the economy.
Women made up over 28 per cent of the workforce in both quarters, reflecting the sector’s role in fostering gender-inclusive growth and entrepreneurship. This representation is a slight improvement over last year’s figures, emphasising ongoing progress towards inclusivity.
Rise In Establishments Driven By Trade And Services
The number of establishments rose to 7.94 crore in April-June 2025, up from 7.85 crore in the previous quarter. The primary contributors to this growth were the trade segment, which grew by 3.63 per cent, and other services, which expanded by 3.13 per cent. This increase illustrates the sector’s dynamic nature and its pivotal role in providing economic opportunities.
However, employment saw some fluctuation during this period, attributed mainly to a drop in establishments hiring workers and a slowdown in manufacturing activities. The manufacturing sector’s employment share fell by over two percentage points from the previous quarter.
Shift Towards Self-Employment And Digital Integration
The proportion of working owners increased from 58.29 per cent to 60.18 per cent between the two quarters, indicating a clear shift towards self-employment and entrepreneurial ventures. This trend was most prominent in manufacturing, where the decline in hired workers was accompanied by the largest rise in working owners, signalling a move to owner-operated enterprises.
Additionally, the rural workforce expanded from 5.97 crore to 6.25 crore, highlighting the growing influence of unincorporated enterprises in rural areas. The sector is also embracing digital tools, with internet usage among enterprises increasing from 34.20 per cent to 36.03 per cent, showing greater reliance on online platforms to conduct business.