The number of unincorporated establishments in India’s non-agriculture sector has climbed sharply to over 9 crore, while employment in these enterprises has crossed the 15-crore mark in the January–March quarter, according to a government survey released on Thursday. The National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation, published the Quarterly Estimates of the Unincorporated Non-Agricultural Sector for the January–March 2026 period.
The NSO has been releasing quarterly bulletins on key indicators from the unincorporated non-agricultural sector since 2025. The latest publication, titled Quarterly Bulletin on Unincorporated Sector Enterprises (QBUSE), represents the quarterly version of the Annual Survey of Unincorporated Sector Enterprises (ASUSE), offering more frequent and timely data for policymakers, researchers and other stakeholders. The report said the initiative reflects NSO’s continued efforts to provide faster, more actionable insights into one of the most dynamic segments of the Indian economy.
The survey showed that the unincorporated non-agricultural sector recorded a year-on-year rise of 16.69 per cent in the number of establishments, with the estimated total increasing to 9.16 crore in January–March 2026, compared to 7.85 crore in the same quarter of the previous year. Rural India emerged as the primary growth driver, registering a strong increase of 20.46 per cent, while urban areas recorded a comparatively lower growth of 12.59 per cent.
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Employment in the sector reached 15.17 crore during the quarter, crossing the 15-crore milestone for the first time. The sector registered a year-on-year growth of 15.51 per cent, underlining its expanding role in generating livelihoods across both rural and urban regions.
The report noted that working owners continued to form the largest share of the workforce, accounting for 60.97 per cent of total employment in January–March 2026, up from 58.29 per cent in the corresponding quarter last year.
In contrast, the proportion of hired workers declined slightly to 24.77 per cent from 26.86 per cent during the same period. The rural workforce saw particularly strong growth, rising by 21.65 per cent, compared to a 10.39 per cent increase in urban employment, highlighting the sector’s growing importance in rural economic activity.
According to the survey, many unincorporated units rely heavily on casual labour, migrant workers and seasonal workers, who often shift between agricultural and non-agricultural activities depending on demand, contributing to fluctuations in employment and enterprise numbers.
The January–March 2026 quarter also witnessed strong expansion in the services segment of the unincorporated economy, with the number of establishments rising by 24.82 per cent and employment increasing by 31.13 per cent year-on-year.
This robust growth reflects rising entrepreneurial activity in services and the sector’s increasing role as a major driver of job creation and local demand across the country.
Women accounted for about 29 per cent of total employment in the sector, slightly higher than the corresponding quarter of the previous year, highlighting improving female participation and the sector’s contribution to inclusive growth.
The report also pointed to rising digital adoption among enterprises, with around 81 per cent of establishments using the internet for business purposes, based on data collected through the updated ICT module of ASUSE 2026.
Additionally, nearly 81 per cent of firms reported using cashless payment systems, including online banking, UPI, POS machines and other digital transaction tools, indicating rapid financial digitisation at the grassroots level.
The share of establishments with some form of registration stood at 41.37 per cent, reflecting gradual integration of informal enterprises with formal regulatory frameworks.
At the national level, 5,998 First Stage Units were surveyed during the January–March 2026 quarter, covering 2,408 rural villages and 3,590 urban UFS blocks.
The bulletin excluded certain regions, including Andaman & Nicobar Islands, Lakshadweep, Ladakh, and rural areas of Arunachal Pradesh and Nagaland, due to operational constraints and fieldwork limitations.
In total, data from 1,72,845 establishments were analysed for the report, including 74,824 from rural areas and 98,021 from urban locations.
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