TL;DR: The unincorporated sector has shifted from trade and manufacturing towards services. From 2010-11 to 2023-24, total workers grew from 10.8 crore to 12.1 crore, GVA per establishment nearly doubled from ₹1.09 lakh to ₹2.46 lakh, and GVA per worker increased sharply, with urban units outperforming rural ones.

Context:

The Annual Survey of Unincorporated Sector Enterprises (ASUSE) serves as a key mechanism for monitoring India’s non-agricultural informal economy. This sector encompasses a wide range of establishments engaged in manufacturing, trade, and services that operate outside the formal corporate structure. As a primary source of non-farm employment and a significant contributor to the national income, these enterprises play a distinct role in the country’s economic framework.

Who compiles this data?

The National Statistics Office (NSO) initiated the ASUSE. The survey collects information on the economic and operational aspects of non-agricultural unincorporated businesses in manufacturing, trade, and services (excluding construction). Data from ASUSE is to be used for the compilation of National Accounts Statistics. Earlier, similar surveys were conducted by the National Sample Survey Office (NSSO) during its 67th and 73rd rounds on unincorporated non-agricultural enterprises, before the NSSO was merged into the NSO.

Where can I download clean & structured datasets based on ASUSE reports?

Clean, structured, and ready-to-use datasets from the Annual Survey of Unincorporated Sector Enterprises (ASUSE) can be downloaded from the collection on Dataful. The collection includes datasets covering establishments, employment figures, Gross Value Added (GVA), ownership, location, nature of operation, registration characteristics, digital adoption statistics, wages and emoluments, among others.

Key Insights

• There has been a structural shift in the unincorporated sector from manufacturing and trade toward more service-oriented activities. Data from 2010-11 (67th Round) showed that the trade sector accounted for the largest share of establishments at nearly 36%, followed by services at 34%, and manufacturing at 30%. However, by 2023-24, the trade sector’s share fell to 31%, and manufacturing declined to 27%, while the share of services-related establishments rose to 42%.

• The number of workers has increased over time, from 10.8 crore in 2010-11 to 12.1 crore in 2023-24, with growth in both rural and urban areas. A temporary dip was observed in 2021-22 due to the COVID-19 pandemic, but the workforce has since rebounded. The urban workforce consistently exceeds the rural workforce, and the gap has widened over time.

• The Gross Value Added (GVA) per establishment in the unincorporated sector rose sharply from ₹1.09 lakh in 2010-11 to ₹2.46 lakh in 2023-24, nearly doubling over the period. Urban units with a GVA of ₹3.46 lakh consistently outperformed rural ones with ₹1.61 lakh, in 2023–24. This highlights higher prices, productivity and market access in cities.

• The GVA per worker in unincorporated establishments in 2023-24 is about 2.6 times higher than in 2010-11, indicating an improvement in labour productivity. Urban workers continue to generate a higher value with ₹1.81 lakh compared to ₹1.14 lakh in rural areas, which may be attributed to better access to infrastructure, technology, and markets. In terms of growth rate, the rural sector has performed better in productivity, both at the establishment level and the worker level, in 2023-24.

• Delhi, Gujarat and Haryana are the top three states in terms of GVA per establishment. Based on GVA per worker, labour productivity is maximum in Delhi, followed by Kerala and Haryana as of 2023-24.

Why Does It Matter?

The unincorporated sector is a major source of non-farm employment and contributes significantly to India’s economy. ASUSE data shows a notable shift from manufacturing and trade toward services, reflecting changing economic dynamics. Employment has grown with urban workers consistently outnumbering rural ones, while productivity per establishment and per worker has risen sharply, highlighting stronger economic performance in urban areas. These trends underscore the sector’s evolving structure, rising labour productivity, and the need to support balanced growth across regions and sectors.

Key numbers (2010-11 to 2023-24)

• Sectoral composition of establishments:
  Trade: 36% →31%,
  Manufacturing: 30% → 27%,
  Services: 34% → 42%

• Total number of workers: 10.8 crore → 12.1 crore

• GVA per establishment: ₹1.09 lakh → ₹2.46 lakh

• GVA per worker: ₹0.70 lakh → ₹1.81 lakh (urban), ₹0.44 lakh →₹1.14 lakh (rural)