Informal Sector Dominated By Retail, Apparel Industries
The latest figures from the Annual Survey of Unincorporated Enterprises (ASUE) reveal that retail trade and apparel manufacturing make up a significant portion of India’s large informal employment sector. Data collected between October 2022 to September 2023 shows over 110 million workers were engaged in unincorporated businesses across the country during this period.
Retail trade and apparel manufacturing employed the highest number of informal workers among all activity categories. Other retail dominated the sector, accounting for nearly 30% of all establishments and employment. Apparel manufacturing followed closely with over 8% of the total workforce.
Community, social and personal services ranked third in terms of jobs provided. Together, these top three industries demonstrated the informal economy’s continued reliance on labour-intensive industries for employment generation.
The survey found Unincorporated enterprises grew at a robust pace over the past year, with over 65 million individual proprietorships and partnerships recorded nationwide as of September 2023. Uttar Pradesh, Maharashtra and West Bengal led in terms of total establishments and workers engaged across rural and urban areas.
Use of digital technologies also expanded, indicating accelerated digitization within the sector. Over 7% more entrepreneurs cited using internet for business purposes compared to the previous survey period. This opens possibilities for more market linkages and improved operations.
Gross value added by unincorporated businesses increased nearly 10% year-on-year according to current price estimates. The share of female employment inched up marginally as well.
The latest ASUE statistics provide valuable insights into India’s job landscapes outside the formal sector. It highlights continuing reliance on traditional labour-absorbing industries and the ongoing digital transition propelling future growth. With further policy support, the enormous informal sector can be better leveraged for more inclusive development.
