Unincorporated Enterprises Near 8% Growth, Add Over 7.4 Million Jobs in 2025: Survey

by R. Suryamurthy March 24, 2026

By R. Suryamurthy March 24, 2026 0 comments 3 minutes read

India’s unincorporated non-agricultural sector expanded sharply in 2025, with the number of establishments rising to 7.92 crore from 7.34 crore in the previous survey round — a near 8% increase — while employment surged with the addition of over 74.5 lakh jobs, according to data released by the Ministry of Statistics and Programme Implementation.

The latest Annual Survey of Unincorporated Sector Enterprises (ASUSE) for the January–December 2025 period also showed total employment in the sector reaching 12.81 crore workers, underlining the segment’s central role in absorbing labor and sustaining livelihoods across the country.

The expansion in enterprise numbers reflects a broad-based recovery and growth across manufacturing, trade and services — sectors that form the backbone of India’s informal and semi-formal economy.

Broad-based expansion across sectors

Among the three major segments, “other services” led the expansion in the number of establishments, registering a growth of 10.29%, followed by manufacturing at 6.48% and trade at 6.18%. The trend indicates increasing diversification within the sector, particularly toward service-oriented activities.

At the same time, economic output also strengthened. Gross Value Added (GVA) rose by 10.87% at current prices, driven largely by a sharp 16.77% increase in the trade sector. Manufacturing and services recorded GVA growth of 8.52% and 7.36%, respectively.

In terms of contribution, however, services continued to dominate, accounting for 42% of total GVA, followed by trade (37%) and manufacturing (21%).

Productivity and earnings show gradual gains

The survey pointed to moderate improvements in productivity. GVA per worker rose by 4.54% to ₹1,56,539, while GVA per establishment increased to ₹2,52,699, suggesting incremental efficiency gains even as the sector expands.

Worker earnings also edged higher, with emoluments per hired worker rising by 3.88%. The trade sector saw the sharpest increase in wages, at around 8.5%, reflecting improved business conditions in that segment.

Women-led enterprises inch up

Women’s participation in enterprise ownership continued to rise, though gradually. The share of female-owned proprietary establishments increased to 27% in 2025 from 26.2% in the previous survey, indicating a slow but steady shift toward greater gender inclusion in business activity.

Digital adoption accelerates

A notable structural shift was visible in digital adoption. The proportion of establishments using the internet climbed to 39.4%, up significantly from 26.7% a year earlier.

This suggests that even smaller, unincorporated businesses are increasingly integrating digital tools into their operations — from payments to supply chains — aligning with broader trends in India’s digital economy.

Critical pillar of employment

The unincorporated non-agricultural sector remains one of India’s largest employment generators, particularly for low- and semi-skilled workers. Its ability to expand both enterprise numbers and employment simultaneously highlights its continued resilience, even amid shifting economic conditions.

The ASUSE 2025 survey, based on data collected from over 6.7 lakh establishments across rural and urban India, provides a comprehensive snapshot of this segment, which plays a vital role in supporting domestic demand, supply chains and inclusive growth.

A detailed report, along with unit-level data, is expected to be released in April, offering deeper insights into the evolving dynamics of the sector.