The unincorporated non-agricultural 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, reflecting a robust 10.01 per cent growth in the labour market, according to data released by the Ministry of Statistics on Wednesday.

The data which is part of the Annual Survey of Unincorporated Sector Enterprises (ASUSE 2023-24) shows that more than one-third of this workforce was engaged in the states of Uttar Pradesh, Maharashtra and West Bengal.

The proportion of female workers to total workers has increased from 25.63 per cent in ASUSE 2022-23 to 28.12 per cent in ASUSE 2023-24. About 58 per cent of the establishments were headed by female proprietors in the manufacturing sector during the survey period, the ministry said.

The total number of establishments in the sector increased substantially from 6.5 crore in 2022-23 to 7.34 crore in 2023-24, representing a healthy 12.84 per cent growth.

The unincorporated non-agricultural sector holds significant importance in the Indian economy, primarily due to its ability to absorb a significant portion of the country’s workforce, its inclusivity in providing employment opportunities to a diverse range of people and also for its contribution to the country’s Gross Domestic Product (GDP).

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 in the manufacturing sector.

Around 39 per cent of the establishments in this sector were engaged in either retail trade (around 27 per cent) or manufacturing of wearing apparel (around 12 per cent) according to ASUSE 2023-24.

Among the major states, highest number of establishments, both rural and urban combined, have been reported in Uttar Pradesh, followed by West Bengal and Maharashtra during the same period.

The Gross Value Added (GVA) which is a key indicator of economic performance rose by 16.52 per cent driven by a 26.17 per cent growth in other services sector.

The top three states in terms of GVA were Maharashtra, Uttar Pradesh and Gujarat during ASUSE 2023-24.

Among the activity categories, it is observed that other retail trade, followed by manufacturing of wearing apparel and other community, social and personal services have reported the most number of establishments and engaged the maximum number of workers at all-India level in ASUSE 2023-24.

The percentage of registered establishments has increased marginally from 36.80 per cent in ASUSE 2022-23 to 37.20 per cent in ASUSE 2023-24 thus showing an increasing trend of registration in the sector.

The use of Internet, for entrepreneurial purpose, has increased from 13.50 per cent in 2022-23 to 17.90 per cent in 2023-24 in rural and from 30.20 per cent to 37 per cent in urban sector.

Overall, it increased from 21.10 per cent to 26.70 per cent during ASUSE 2023-24 as compared to ASUSE 2022-23, according to the Ministry's factsheet.

Among the broad activity categories, about 35 per cent of trading establishments used Internet for entrepreneurial purpose, an increase of 10 percentage points from ASUSE 2022-23.

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

There has been greater prosperity in the informal sector as fixed assets owned by an unincorporated non-agricultural establishment, on average, has risen from Rs 3.18 lakh in ASUSE 2022-23 to Rs 3.24 lakh in ASUSE 2023-24 showing an improved capital investment in the sector.

At the same time, Outstanding Loan per establishment has increased from Rs 50,138 in ASUSE 2022-23 to Rs 53,710 in ASUSE 2023-24, indicating an improvement in availability of loans in this sector.