Unincorporated Non-Agriculture Sector Adds 1.1 Crore Jobs And 16.5 Per Cent GVA Growth In 2023-24—Here’s All About Latest Annual Survey

The Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24 (October-September) reveals significant growth in India’s unincorporated non-agricultural sector, comprising non-corporate entities. 

The survey reports the addition of 84 lakh establishments and 1.1 crore jobs, reflecting the sector’s crucial role in absorbing the labor force amid a slowdown in the formal sector.

The unincorporated non-agricultural sector refers to all economic activities outside agriculture that are conducted by non-corporate entities, including — Small Businesses and Enterprises such as sole proprietorships, and partnerships, Self-Employed Workers like shopkeepers, and street vendors,  Unorganized Service which Includes informal service providers like auto drivers, repair shops etc.

The unincorporated sector saw a 10 per cent rise in workforce, with total workers reaching 12.06 crore—5.61 crore in rural areas and 6.45 crore in urban areas. Gross Value Added (GVA) grew by 16.5 per cent per cent slightly exceeding the 16.1 per cent growth recorded the previous year. 

Notably, nominal wage growth in the sector climbed to 13 per cent, a stark contrast to the slower or negative wage growth seen in the corporate sector during the same period. Adjusted for retail inflation, which averaged 4.9 per cent, the real wage growth was modest but significant.

Chief Economic Advisor V. Anantha Nageswaran highlighted the “significant” real emolument growth in the sector, emphasizing its resilience. 

MoSPI Secretary Saurabh Garg noted an improvement in labor productivity, as GVA per worker increased by 5.6 per cent, reaching Rs 1.5 lakh in 2023-24 from Rs 1.42 lakh in 2022-23.

The informal sector remains a vital indicator of employment generation, particularly as it sustains economic activity and labor absorption when the formal sector faces challenges.

Growth in services and rural employment further underscores its importance as a buffer in times of economic uncertainty.

ASUSE's findings reaffirm the sector's pivotal role in supporting employment and wage growth, making it a crucial focus area for policy interventions aimed at inclusive economic development.

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