India's Informal Sector Records Robust Growth Despite Global Headwinds

India's Informal Sector Records Robust Growth Despite Global Headwinds

The estimated number of establishments increased to 7.97 crore in the July-September quarter this year from the corresponding figure of 7.34 crore in the same quarter of the previous year.

New Delhi: Both the number of establishments and overall employment in India's unincorporated non-agricultural sector enterprises recorded a robust growth in the July-September quarter of 2025 compared to the same quarter of the previous year, despite global headwinds, according to a statement issued by the Ministry of Statistics on Tuesday.

The estimated number of establishments increased to 7.97 crore in the July-September quarter this year from the corresponding figure of 7.34 crore in the same quarter of the previous year. This also marks an increase over the 7.94 crore establishments estimated in the preceding April-June quarter of 2025.

The employment in the incorporated non-agricultural sector stood close to 12.86 crore, which reflects a notable rise over the figure of a little over 12 crore workers recorded in the same period of the previous year.

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The use of the internet among enterprises in this sector increased steadily from 36 per cent in April-June 2025 to 39 per cent during July–September 2025.

The proportion of establishments employing hired workers in the unincorporated non-agricultural sector was recorded at 13.41 per cent in this quarter, reflecting a marginal increase over the last quarter.

Working owners continued to account for the largest share (59.98 per cent) in the July-September 2025 quarter, as in the earlier quarters. However, the percentage share of hired workers during the quarter increased from 24.38 per cent in April-June to 25.91 per cent in this quarter.

The increase in the estimated urban workforce from 6.61 crore (previous quarter) to 6.91 crore (current quarter) indicates a rise in employment in the enterprises in urban areas, reflecting greater labour absorption and expanded economic activity during this period.

The July-September quarter marked a notable recovery in the unincorporated manufacturing sector, with improvements in both employment and establishment numbers over the last quarter. The share of establishments in the manufacturing sector increased from 26 per cent to 27 per cent, and that of employment in the manufacturing sector increased from 26 per cent to 28 per cent.

The women workforce remained impressive, constituting 28.7 per cent of total employment in the sector, the statement added.

Source: ZeeNews
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