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Decline in Employment by 2% in India's Unincorporated Sector Enterprises for the April-June Quarter

, and Administrator

2025 September 13 . 5:18 AM

2 min read

Decline in Job Opportunities at Unregistered Businesses by 2% between April and June

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India's Unincorporated Sector Enterprises See Growth and Shift Towards Self-Employment

The first quarterly bulletin for unincorporated sector enterprises in India, released on Wednesday, reveals some significant changes in the country's economic landscape.

The number of unincorporated sector enterprises has risen to an impressive 79.4 million in April-June, marking a growth from the previous quarter. This expansion is particularly noticeable in the rural areas, where the workforce increased from 59.7 million to 62.5 million over the same period.

The manufacturing sector, however, saw a contraction of about 4.7% during this time, accompanied by a steep decline in the share of hired workers and a corresponding increase in working owners. This indicates a strong move towards owner-driven enterprises in the manufacturing sector. The shift towards self-employment and entrepreneurial activities was particularly evident in this sector.

Despite the manufacturing sector's contraction, the unincorporated sector as a whole continues to generate large-scale employment and contribute significantly to the country's economic output. The services sector expanded by 3.1%, and the trade sector saw a 3.6% rise, driving the overall increase.

The government's surveys conducted for the unincorporated sector enterprises from April 2021 to September 2024 reveal that the number of establishments in this sector continues to rise. The unincorporated non-agricultural sector, a key driver of India's economy, provides essential livelihood opportunities, fosters small-scale entrepreneurship, and supports local supply chains across rural and urban areas.

While specific companies or entrepreneurs responsible for the increase in worker participation as owners in the unincorporated non-agricultural sector are not publicly identified, it is clear that the sector plays a growing role in rural economic activity. The rural unincorporated enterprises, in particular, are playing a crucial part in this growth.

The unincorporated sector enterprises, with their large-scale employment and significant contribution to the country's economic output, continue to be a vital part of India's economy. The shift towards self-employment and entrepreneurial activities is a testament to the sector's resilience and adaptability in the face of economic challenges.