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India's Unincorporated Sector Grows 7.97% with 12.81 Crore Workers

India's unincorporated non-agricultural sector grew 7.97% to 7.92 crore establishments, according to the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2025. The sector employed 12.81 crore workers, adding over 74.52 lakh new jobs from the previous period. Female workers accounted for 29% of the workforce, with over 60% of manufacturing establishments headed by female proprietors. The survey also highlighted improved access to formal credit, with 80% of outstanding loans routed through institutional sources.

Key Points: 7.92 Crore Establishments Drive India's Economic Growth

  • Unincorporated sector grew 7.97% to 7.92 crore establishments
  • 12.81 crore workers employed with 74.52 lakh new jobs added
  • Female workers comprise 29% of workforce
  • Over 60% manufacturing establishments headed by female proprietors
2 min read

7.92 crore unincorporated establishments with 12.81 crore workers driving economic growth: Govt

India's unincorporated non-agricultural sector grew 7.97% to 7.92 crore establishments, employing 12.81 crore workers with 74.52 lakh new jobs added.

"These trends indicate a notable presence and growing participation of women in the unincorporated sector, both as workers and as entrepreneurs - Ministry of Statistics"

New Delhi, May 6

The total number of establishments in the unincorporated non-agricultural sector increased substantially from 7.34 crore to 7.92 crore, representing a healthy 7.97 per cent growth and driving economic expansion, the government said on Wednesday.

Among the broad sectors, the number of establishments in the 'Other Services' sector recorded a robust growth of 10.29 per cent, followed by a 6.48 per cent increase witnessed by the manufacturing sector and 6.18 per cent by trade sector, according to the Ministry of Statistics and Programme Implementation, which released the key results of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for the reference period of January 2025 to December 2025.

The unincorporated non-agricultural sector is a vital component of the Indian economy, generating large-scale employment, supporting livelihoods, and contributing significantly to GDP while complementing the organised sector.

The unincorporated non-agricultural sector employed about 12.81 crore workers between January 2025 and December 2025, adding more than 74.52 lakh jobs from 2023-24 (October 2023-September 2024), reflecting robust labour market expansion.

More than one-third of this workforce was engaged in the states of Uttar Pradesh, West Bengal and Maharashtra.

Female workers accounted for about 29 per cent of the total workforce in the sector.

Of the total female workers, nearly 22 per cent were engaged in the manufacturing of wearing apparel.

Additionally, female proprietors headed over 60 per cent of establishments in the manufacturing sector.

"Overall, the percentage of female-headed proprietary establishments increased marginally from 26.17 per cent in ASUSE 2023-24 to 26.93 per cent in ASUSE 2025. These trends indicate a notable presence and growing participation of women in the unincorporated sector, both as workers and as entrepreneurs, reflecting the increasing role of the sector in women's empowerment," said the findings.

Nearly 72 per cent of female-led hired-worker establishments engaged at least one female hired worker, highlighting their role in generating employment opportunities for women.

Overall, around 80 per cent of the outstanding loan has been routed through different institutional sources, including commercial banks and government schemes, indicating better access and greater dependence on formal credit, said the survey report.

- IANS

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Reader Comments

A
Ananya R
Very encouraging to see almost 27% of proprietary establishments being run by women and that 60% of manufacturing units are headed by women! Makes me proud as an Indian woman. 🚀 This is real Atmanirbhar Bharat happening at the grassroots level. The increase in female entrepreneurs from 26.17% to 26.93% may seem small but represents thousands of women taking charge of their lives.
J
Joseph A (USA)
Interesting data. In the US we often talk about the 'gig economy' but India's unincorporated sector seems to encompass everything from roadside vendors to small manufacturing units. The 80% formal credit access is surprisingly high - better than many developing nations. This sector clearly deserves more recognition as a driver of GDP.
V
Vikram M
The 7.97% growth in unincorporated establishments is a double-edged sword. On one hand it shows entrepreneurial spirit is alive and well, on the other hand it suggests the formal sector isn't absorbing enough workers. Must say, seeing UP, West Bengal and Maharashtra employ 1/3rd of this workforce reflects our regional economic disparities. Need more balanced growth.
P
Priya S
Finally some good economic news! 😊 The fact that 72% of female-led establishments hire other women is heartening - shows women supporting women. But I wish the survey included data on wages and working conditions. These numbers tell us about quantity but not quality of work. Still, a step in the right direction for women's empowerment.
M
Michael C (UK)
Impressive numbers! 7.92 crore establishments is massive - that's more than the entire

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