India’s unincorporated sector records 7.84% rise in employment

India’s unincorporated non-agricultural sector has registered a robust increase in employment with both manufacturing and services segments recording a significant expansion in establishments in the post-Covid period, according to a survey released by the Ministry of Statistics on Friday. “The unincorporated non-agricultural sector employed about 11 crore workers from October 2022 to September 2023, up from 9.8 crore in 2021-22, showing a healthy labour market growth. This 7.8 per cent annual growth demonstrates the sector’s capacity to generate employment,” the survey said.

Sector-wise, the maximum annual growth in employment during the period was observed in the ‘other services’ sector (13. 42 per cent), followed by the manufacturing sector (6.34 per cent).

According to the survey, the estimated number of establishments grew by 5.88 per cent from October 2022 to September 2023 in comparison to April 2021 to March 2021. Construction activity was excluded from the figures.

The majority of the workers in the non-agricultural unincorporated sector are informal workers. The survey shows that the average annual earnings for informal workers rose to Rs 1,10,982 in 2022-23 from Rs 1,06,381 in 2021-22. This reflects improved wage conditions in the informal sector, the survey said.

During the same period, the gross value of output (GVO) per establishment also increased from Rs 3,98,304 to Rs 4,63,389.

This indicates increased productivity with more efficient use of resources, including labour, which is critical for sustained economic growth and competitiveness, the survey pointed out.

The gross value added (GVA) also grew by 9.83 per cent (at current price) during this period.

The unincorporated non-agricultural sector plays a pivotal role in the Indian economy, contributing significantly to employment, gross domestic product, and the overall socio-economic landscape.

The sector also supports the incorporated sector by acting as suppliers and service providers, thereby forming an integral part of the domestic value chain, the survey added.