India’s unincorporated non-agricultural sector recorded robust growth in 2025, with a sharp rise in establishments, employment, and productivity, according to the latest findings of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) released by the Ministry of Statistics and Programme Implementation (MoSPI).
The survey, covering the period from January to December 2025, highlights the continued resilience and expansion of a sector that plays a critical role in employment generation and economic activity across the country.
Strong Growth Across Key Indicators
The total number of establishments increased from 7.34 crore in 2023-24 to 7.92 crore in 2025, marking a growth of 7.97%. This expansion was broad-based, with the “other services” segment leading at 10.29% growth, followed by manufacturing (6.48%) and trade (6.18%).
Employment in the sector also saw a significant rise, with more than 74.52 lakh new jobs created, taking the total workforce to around 12.81 crore. The “other services” category accounted for the largest share of new jobs, generating nearly 35 lakh additional employment opportunities.
Gross Value Added (GVA), a key measure of economic output, grew by 10.87% during the period. The growth was driven primarily by the trade sector, which expanded by 16.77%, followed by manufacturing at 8.52% and other services at 7.36%. Among these, the services sector contributed the largest share to GVA at 42%, followed by trade (37%) and manufacturing (21%).
Improvement in Productivity and Wages
Productivity indicators also showed improvement, with GVA per worker rising by 4.54% to ₹1,56,539. Similarly, GVA per establishment increased to ₹2,52,699.
Worker earnings witnessed a moderate uptick, with emoluments per hired worker increasing by 3.88% compared to the previous survey round. The highest wage growth was observed in the trade sector, which recorded an increase of around 8.5%.
Rise in Women-Led Enterprises and Digital Adoption
The survey pointed to a gradual rise in women entrepreneurship, with women-owned proprietary establishments increasing to 27% from 26.2% in the previous round.
Digital adoption in the sector saw a notable surge, with the share of establishments using the internet rising significantly from 26.7% to 39.4%. This reflects a growing shift towards digital tools and platforms for business operations.
Sector’s Role in the Economy
The unincorporated non-agricultural sector – comprising manufacturing, trade, and services (excluding construction) -continues to be a vital pillar of the Indian economy. It supports livelihoods for millions and complements the formal sector by strengthening domestic value chains.
The ASUSE provides critical data for policymaking, national accounts, and sectoral planning for ministries such as MSME and textiles, while also helping stakeholders make informed decisions.
Survey Coverage and Methodology
The 2025 survey covered both rural and urban areas across India (excluding certain remote regions) and collected data from over 6.7 lakh establishments using a multi-stage sampling method. Data collection was largely conducted through digital means using Computer Assisted Personal Interviewing (CAPI).
The Ministry indicated that a detailed report and unit-level data from the survey will be released in April 2026, offering deeper insights into the sector’s performance.
Overall, the ASUSE 2025 findings underline steady expansion, improving productivity, and increasing digital integration in the unincorporated sector, reinforcing its importance in India’s economic growth story.
