India’s Unincorporated Sector Expands: ASUSE 2023-24 Highlights Growth in Enterprises, Employment, and Women Entrepreneurship

India’s unincorporated sector has witnessed substantial growth, according to the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023-24, conducted by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). The report highlights a sharp rise in the number of enterprises, employment opportunities, digital adoption, and the increasing presence of women entrepreneurs in business.

The survey estimates that 7.34 crore unincorporated enterprises operating in manufacturing, trade, and services sectors between October 2023 and September 2024, up from 6.50 crore in the previous year. This reflects an addition of 84 lakh new enterprises, emphasizing the sector’s role as a significant driver of employment and economic activity. Rural and urban areas have witnessed balanced growth, with 3.97 crore enterprises in rural areas and 3.37 crore in urban regions.

A major highlight of the report is the increase in employment. The unincorporated non-agricultural economy employed 12 crore workers in 2023-24, marking an increase of 1 crore new jobs compared to the previous year. The trade sector employed 33% of the workforce, while 28% were in manufacturing and 39% in other services. The highest employment rates were reported in Uttar Pradesh (13.3%), Maharashtra (10.1%), and West Bengal (10.0%), reinforcing the importance of these states in the informal economy.

Source: Press Information Bureau, 29 January 2025

Another encouraging trend is the rise in women-led enterprises. The report reveals that 26.2% of unincorporated enterprises are owned by women, indicating an increase in female entrepreneurship. In the manufacturing sector, 58.4% of enterprises are led by women, with West Bengal recording the highest share (36.4%). This shift highlights the growing influence of women in business, supported by government policies and digital initiatives that facilitate financial access and market connectivity.

The report also emphasizes the growing digital transformation in the unincorporated sector. Internet usage among enterprises increased from 21.1% in 2022-23 to 26.7% in 2023-24. The trend is more evident in urban areas, where internet usage reached 37%, while rural businesses saw an increase to 17.9%. This adoption is driven by Digital India initiatives and MSME digitization programs, encouraging small businesses to integrate online transactions, digital marketing, and e-commerce.

The financial performance of unincorporated enterprises has shown steady improvement. The Gross Value Added (GVA) per enterprise rose to ₹2,45,687, while outstanding loans per enterprise increased to ₹53,710 from ₹50,138 in the previous year. Kerala reported the highest outstanding loans per enterprise at ₹1,81,918, highlighting a rise in credit access for small businesses.

States such as Uttar Pradesh (12.8%), West Bengal (12.6%), and Maharashtra (8.8%) have the highest number of enterprises, with retail trade and small-scale manufacturing dominating the sector. The findings reaffirm the critical role of the informal economy in employment generation and economic resilience.

With increasing financial inclusion, digital adoption, and women-led entrepreneurship, India’s unincorporated sector is poised for further expansion. The ASUSE 2023-24 report serves as a crucial reference for policymakers, businesses, and entrepreneurs aiming to strengthen the sector’s contribution to the national economy.

For the full report, visit www.mospi.gov.in.