Unincorporated sector enterprises witnessed a 10.01 per cent increase in employment to over 12 crore during the year ended September 2024, while the number of establishments rose 12.28 per cent to 7.34 crore, according to a government survey.

The survey, which covers unincorporated non-agriculture sector enterprises, showed gross value added (GVA) grew 16.52 per cent during the October 2023 - September 2024 period.

These findings form part of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24 for the reference period -- October 2023 - September 2024 -- referred to as ASUSE 2023-24, released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday.

The sector employed more than 12 crore workers between October 2023 and September 2024, marking an increase of more than one crore workers from 2022-23 and reflecting robust labour market growth.

The total number of workers employed increased to 12,05,99,800 in ASUSE 2023-24 from 10,96,26,000 in ASUSE 2022-23.

Among the broad activities, the "Other Services" sector showed the highest annual growth of 17.86 per cent, followed by 10.03 per cent by the manufacturing sector.

The percentage of female-owned proprietary establishments has increased from 22.9 per cent in 2022-23 to 26.2 per cent in ASUSE 2023-24.

This trend indicates a positive shift in the participation of women in business ownership, highlighting an increase in female entrepreneurship over the given period, it stated.

In ASUSE 2023-24, data were collected from a total of 4,98,024 establishments (2,73,085 in rural and 2,24,939 in urban) from 16,842 surveyed FSUs (8,523 in rural and 8,319 in urban).

ASUSE 2023-24 has been conducted based on area frame and establishments have been listed in the selected FSUs of both rural and urban sectors.

Mostly, data were collected from the selected establishments through oral enquiry pertaining to the ‘monthly’ reference period barring a few big establishments, which had provided annual data from their audited Books of Accounts.

The data for the survey were collected in Tablet using Computer Assisted Personal Interviewing (CAPI).

The percentage of establishments using the internet has also grown significantly from 21.1 per cent in 2022-23 to 26.7 per cent in ASUSE 2023-24.

This substantial growth reflects a strong trend toward digital adoption among establishments, highlighting the increasing reliance on the Internet for business operations.

The average emolument per hired worker also increased by 13 per cent in 2023-24 compared to the previous year 2022-23, signalling improvements in wage levels.

This wage growth serves as a catalyst, strengthening the labour market, enhancing productivity, and fuelling broader economic demand.

The highest increase in this metric was observed in the manufacturing sector with a growth of little more than 16 per cent.

The total number of establishments in the sector increased substantially from 6.50 crore in 2022-23 to 7.34 crore in 2023-24, representing a healthy 12.84 per cent growth.

Among the broad sectors covered, the number of establishments in the "Other Services" sector recorded a growth of 23.55 per cent, followed by a 13 per cent increase witnessed by the manufacturing sector.

This significant increase highlights consistent sectoral expansion and reinforces the sector's critical role in driving the overall growth of the unincorporated sector, the report stated.

During the same period, the Gross Value Added (GVA), a key indicator of economic performance, rose 16.52 per cent, driven by a 26.17 per cent growth in the other services sector.

Gross Value Added (GVA) per worker, a measure of labour productivity of the sector, increased to Rs 1,49,742 in 2023-24 from Rs 1,41,769 in 2022-23 in current prices, showing a 5.62 per cent increase.

During the same period, the Gross Value of Output (GVO) per establishment also increased from Rs 4,63,389 to Rs 4,91,862 in current prices.

The unincorporated non-agricultural sector plays an important role in the Indian economy, contributing significantly to employment, gross domestic product and the overall socio-economic landscape.

This sector not only sustains livelihoods for millions but also acts as a backbone for the incorporated sector by supplying goods and services, reinforcing its role in the domestic value chain.

ASUSE is carried out with the primary objective of measuring various economic and operational characteristics of unincorporated non-agricultural establishments in manufacturing, trade and other service sectors (excluding construction).

The survey collects data on various economic characteristics of this sector, including the number of workers, GVA, emoluments paid, fixed assets owned, and outstanding loans, besides, different types of operational characteristics, such as type of ownership, nature of operation, registration status, use of ICT, etc.

The data serves as a key input for policy-making, supporting National Accounts Statistics, fulfilling the requirements of ministries, such as Micro, Small and Medium Enterprise (MSME), Textiles, Labour & Employment, and empowering stakeholders to make informed, data-driven decisions.

The survey has been conducted following a multi-stage stratified sampling scheme, where first-stage units (FSUs) are census villages in rural areas (except for rural Kerala, where Panchayat wards have been taken as FSUs) and UFS (Urban Frame Survey) blocks in urban areas.

The ultimate stage units (USUs) are establishments for both sectors. In the case of large FSUs, one intermediate stage of sampling has been done in the form of hamlet groups in rural and sub-blocks in urban.

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