The unincorporated non-agricultural sector employed more than 12 crore workers between October 2023 and September 2024, an increase of more than one crore workers from 2022-23, reflecting a robust 10.01 percent growth in the labor market, according to data released by the Ministry of Statistics on Wednesday.
The data, which is part of the Annual Survey of Unincorporated Sector Enterprises (ASUSE 2023-24), shows that more than one-third of this workforce was engaged in the states of Uttar Pradesh, Maharashtra, and West Bengal.
The proportion of female workers to total workers increased from 25.63 percent in ASUSE 2022-23 to 28.12 percent in ASUSE 2023-24. About 58 percent of the establishments in the manufacturing sector were headed by female proprietors during the survey period, the ministry said.
The total number of establishments in the sector increased substantially from 6.5 crore in 2022-23 to 7.34 crore in 2023-24, representing a healthy 12.84 percent growth.
The unincorporated non-agricultural sector holds significant importance in the Indian economy, primarily due to its ability to absorb a large portion of the country’s workforce, its inclusivity in providing employment opportunities to a diverse range of people, and its contribution to the country’s Gross Domestic Product (GDP).
Among the broad sectors covered, the number of establishments in the "Other Services" sector recorded a growth of 23.55 percent, followed by a 13 percent increase in the manufacturing sector.
Around 39 percent of the establishments in this sector were engaged in either retail trade (around 27 percent) or the manufacturing of wearing apparel (around 12 percent), according to ASUSE 2023-24.
The highest number of establishments in major states (rural and urban combined) was reported in Uttar Pradesh, followed by West Bengal and Maharashtra during this period.
The key Gross Value Added (GVA) economic indicator rose by 16.52 percent, driven significantly by a 26.17 percent growth in the "Other Services" sector.
The top three states in terms of GVA during ASUSE 2023-24 were Maharashtra, Uttar Pradesh, and Gujarat.
Among the activity categories, retail trade, followed by the manufacturing of wearing apparel and other community, social, and personal services, reported the highest number of establishments and engaged the maximum number of workers at the all-India level in ASUSE 2023-24.
The percentage of registered establishments increased marginally from 36.80 percent in ASUSE 2022-23 to 37.20 percent in ASUSE 2023-24, indicating a growing trend of registration in the sector.
The use of the Internet for entrepreneurial purposes increased from 13.50 percent in 2022-23 to 17.90 percent in 2023-24 in rural areas and from 30.20 percent to 37 percent in urban areas.
Overall, internet usage for entrepreneurial purposes rose from 21.10 percent in ASUSE 2022-23 to 26.70 percent in ASUSE 2023-24, according to the ministry's factsheet.
Among the broad activity categories, about 35 percent of trading establishments used the Internet for entrepreneurial purposes, marking an increase of 10 percentage points from ASUSE 2022-23.
This substantial growth reflects a strong trend toward digital adoption among establishments, highlighting the increasing reliance on the Internet for business operations.
There has been greater prosperity in the informal sector, as fixed assets owned by an unincorporated non-agricultural establishment, on average, increased from ₹3.18 lakh in ASUSE 2022-23 to ₹3.24 lakh in ASUSE 2023-24, indicating improved capital investment in the sector.
At the same time, the outstanding loan per establishment increased from ₹50,138 in ASUSE 2022-23 to ₹53,710 in ASUSE 2023-24, suggesting improved loan availability in this sector.
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