The Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025 highlights significant expansion across India’s informal non-agricultural economy between 2023–24 and 2025.
According to the survey, the number of establishments increased by 7.97% to reach 7.92 crore, while total employment rose by 6.18%, adding nearly 74.52 lakh workers and taking the sector’s workforce to 12.81 crore. Gross Value Added (GVA) also grew by 10.87% at current prices, underlining the continued importance of the unincorporated sector in employment generation and economic activity.
A major trend identified in the report is the rapid spread of digital adoption, particularly in rural India. Internet usage for business purposes rose from 26.68% to 39.37% across the sector, while rural enterprise usage increased from 17.94% to 31.06%. More than half of trading establishments now use digital tools in some form.
The survey also points to rising participation of women in enterprise ownership. Female-headed proprietary establishments increased to 26.93%, with women accounting for over 60% of manufacturing proprietorships.
Financial integration has also deepened, with more than 80% of outstanding loans now sourced through formal institutions such as banks and government-supported credit channels.
Key Growth and Digital Benchmarks (ASUSE 2025)
Establishment Growth: Increased by 7.97%, led by the "Other Services" sector at 10.29%.
Employment Surge: Total workers reached 12.81 crore, a 6.18% rise from the previous survey.
Digital Leap (Rural): Internet use in rural establishments nearly doubled, rising from 17.94% to 31.06%.
Female Empowerment: The share of female-headed proprietary establishments grew to 26.93%.
Institutional Credit: Over 80% of loans are sourced via banks and formal channels, marking improved financial access.
Fixed Assets: Average fixed assets per establishment increased to ₹3,42,242.
What is an "Unincorporated Sector Enterprise"?
An unincorporated sector enterprise refers to a business entity that is not legally incorporated as a separate legal entity from its owners, typically including small proprietary and partnership firms.
In the Indian context, this sector encompasses a vast array of non-agricultural activities in manufacturing, trade, and services. These enterprises are often characterised by their small scale of operations, informal employment arrangements, and significant contribution to the local economy, particularly in providing self-employment and jobs to millions outside the organized corporate sector.
Policy Relevance
Digital India Outcomes: The sharp rise in rural internet usage (from 17.9% to 31.1%) indicates success of digital literacy and connectivity programs in the hinterlands.
Targeted MSME Support: With 47% of establishments concentrated in retail trade and apparel manufacturing, policymakers can design sector-specific credit and infrastructure schemes.
Women’s Economic Agency: The fact that 60% of manufacturing units are female-led provides a strong data point for expanding women-centric entrepreneurial subsidies and training.
Formalisation Strategies: While registration increased only slightly (37.5%), the high rate of institutional borrowing (80%) suggests that financial formalisation may be outpacing administrative registration.
Precise Regional Planning: High establishment density in Uttar Pradesh and West Bengal allows for more localised infrastructure and cluster development planning.
Follow the Full Data Here: Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025 - Survey period: January 2025 to December 2025)