India’s informal sector booms: employment up by 10.01%, GVA rises 16.52%
New Delhi (The Uttam Hindu): India's informal sector saw impressive growth during the period from October 2023 to September 2024, with the number of establishments increasing by 12.84% compared to the previous year, according to the Ministry of Statistics’ annual survey. Employment in the sector also grew by 10.01%, while Gross Value Added (GVA) rose by 16.52% at current prices. The total number of establishments in the unincorporated sector surged from 6.50 crore in 2022-23 to 7.34 crore in 2023-24. The "Other Services" sector saw the largest growth in establishments, with an increase of 23.55%, while the manufacturing sector grew by 13%. This strong growth reflects the ongoing expansion within the sector and underscores its importance in driving the overall growth of India’s unincorporated sector. During this period, more than 12 crore workers were employed in the sector, which was an increase of over one crore workers compared to the previous year, demonstrating a healthy growth in the labor market.
The "Other Services" sector saw the highest annual growth in employment, with a 17.86% increase, followed by the manufacturing sector with a 10.03% rise. The unincorporated non-agricultural sector plays a significant role in the Indian economy, contributing to employment, Gross Domestic Product (GDP), and the broader socio-economic landscape. It provides livelihoods for millions and supports the incorporated sector by supplying goods and services, which strengthens the domestic value chain.
The Annual Survey of Unincorporated Sector Enterprises (ASUSE) aims to measure various economic and operational characteristics of unincorporated non-agricultural establishments in sectors like manufacturing, trade, and other services (excluding construction). The survey collects data on workers, GVA, emoluments, fixed assets, loans, ownership, operation, registration status, and the use of Information and Communication Technology (ICT). This data serves as a valuable resource for policymaking, supporting National Accounts Statistics, and helping various ministries, including MSME, Textiles, and Labour & Employment, to make informed, data-driven decisions.
