India's unincorporated non-agricultural sector has experienced robust growth in employment, with both manufacturing and services segments expanding significantly in the post-Covid period, according to a survey released by the Ministry of Statistics on Friday.
The survey revealed that the sector employed about 110 million workers from October 2022 to September 2023, up from 98 million in 2021-22, indicating healthy labour market growth. This 7.8% annual increase demonstrates the sector’s capacity to generate employment.
The highest annual growth in employment during this period was observed in the ‘other services’ sector, with a 13.42% increase, followed by the manufacturing sector, which grew by 6.34%.
The survey also noted that the estimated number of establishments grew by 5.88% from October 2022 to September 2023 compared to April 2021 to March 2022. Construction activity was excluded from these figures.
Most workers in the unincorporated non-agricultural sector are informal workers. The survey showed that average annual earnings for informal workers rose to ₹110,982 in 2022-23 from ₹106,381 in 2021-22, reflecting improved wage conditions in the informal sector.
During the same period, the gross value of output (GVO) per establishment increased from ₹398,304 to ₹463,389, indicating increased productivity and more efficient use of resources, including labour, which is critical for sustained economic growth and competitiveness.
Additionally, the gross value added (GVA) grew by 9.83% at current prices 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, forming an integral part of the domestic value chain, the survey highlighted.
Follow us
