The Ministry of Statistics and Programme Implementation (MoSPI) has released the findings of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023-24. Covering the period from October 2023 to September 2024, the survey highlights remarkable growth across the unincorporated non-agricultural sector in India, showcasing its vital contribution to the country’s economic framework.
Key Highlights from the ASUSE 2023-24 Report
- Surge in Establishments
The number of establishments in the unincorporated non-agricultural sector grew by 12.84%, increasing from 6.50 crore in 2022-23 to 7.34 crore in 2023-24. Among key sectors:- “Other Services” led the growth with a 23.55% rise.
- Manufacturing establishments grew by 13%.
- Employment Growth
Employment in the sector crossed 12 crore workers, marking a significant increase of 1 crore workers compared to the previous year.- The “Other Services” sector recorded the highest annual growth of 17.86%, followed by 10.03% in the manufacturing sector.
- Female entrepreneurship saw an encouraging rise, with 26.2% of proprietary establishments now owned by women, up from 22.9% in 2022-23.
- Productivity and Value Addition
Gross Value Added (GVA), a key indicator of economic performance, grew by 16.52%, driven largely by a 26.17% growth in the “Other Services” sector.- GVA per worker increased by 5.62%, rising to ₹1,49,742 in 2023-24.
- Gross Value of Output (GVO) per establishment climbed to ₹4,91,862, reflecting greater efficiency and productivity.
- Digital Adoption and Wages
The adoption of digital tools surged, with 26.7% of establishments now leveraging the internet for business operations, compared to 21.1% the previous year.- Emoluments per hired worker increased by 13%, reaching ₹1,41,071, with the manufacturing sector registering the highest wage growth.
A Backbone of the Indian Economy
The unincorporated non-agricultural sector, encompassing manufacturing, trade, and services, plays a pivotal role in India’s economic structure. By supporting over 12 crore workers, the sector not only sustains livelihoods but also reinforces the domestic value chain, acting as a supplier to larger industries.
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Implications for Startups and Enterprises
The impressive growth in establishments and productivity underscores the sector’s resilience and potential. Key indicators such as increased digital adoption and improved wage levels highlight a supportive environment for startups and small enterprises. Enhanced participation by women in business ownership further signals a more inclusive entrepreneurial landscape.
Future Outlook
With the government’s focus on promoting ease of business and digital transformation, the unincorporated sector is poised for sustained growth. The insights from ASUSE 2023-24 will be instrumental in shaping policies to empower startups, enhance productivity, and accelerate India’s journey toward becoming an economic powerhouse.
