Key Details

The NSO’s Quarterly Bulletin of Unincorporated Sector Enterprises (April 2026 - June 2026) covers non-agricultural manufacturing, trade and service establishments that are not incorporated under the Companies Acts. Construction is excluded.

Indicator	April–June 2026
Establishments	8.67 crore, up 9.2% year-on-year
Workers	13.70 crore, up 6.55%
Urban growth	Establishments rose 15.33%; workers increased 12.08%
Rural growth	Establishments rose 3.94%; workers increased 0.70%
Hired-worker establishments	12.13%, down from 13.25%
Female share of workers	30.56%
Using the internet	82.20% of establishments
Using digital payments	79.86%
Registered under an Act or authority	42.50%

Growth Was Concentrated in Urban Areas

The estimated number of unincorporated establishments increased from 7.94 crore to 8.67 crore, while employment rose from 12.86 crore to 13.70 crore.

Urban areas accounted for most of the expansion. They added approximately 56 lakh establishments and 80 lakh workers, while rural employment grew only marginally.

The number of establishments also increased faster than the workforce. This reflects the sector’s continued dependence on very small, owner-operated businesses rather than large employment-generating units.

More Owners, Smaller Share of Hired Workers

Working owners represented 62.38% of the workforce, up from 60.18% a year earlier. The share of regular hired workers fell from 24.38% to 22.77%, while the proportion of establishments employing at least one hired worker declined across manufacturing, trade and services.

This distinction is important: an increase in enterprises may represent greater entrepreneurship or self-employment without producing a comparable increase in wage employment.

Other services remained the largest segment, accounting for 47% of establishments and 45% of workers. Manufacturing represented 26% of both, while trade accounted for 27% of establishments and 29% of workers.

The bulletin reports growth in manufacturing and services and contraction in trade. These comparisons require caution because the 2026 survey adopted NIC-2025, which shifted activities such as motor-vehicle repair from trade to services. Part of the apparent sectoral movement therefore reflects reclassification rather than an economic change.

Digital Use Is High, but Registration Remains Limited

More than four-fifths of establishments used the internet, while nearly 80% used UPI, mobile wallets, point-of-sale devices or other online financial services.

Formal registration was much lower: 42.5% were registered under at least one Act or authority. Digital adoption is therefore extending well beyond businesses that have entered formal regulatory systems.

This creates opportunities to deliver payments, credit and government services digitally, but internet or UPI use should not be treated as equivalent to tax registration, worker protection or formal business status.

How Reliable Are the Estimates?

The April–June survey covered 1,75,618 establishments across 5,994 first-stage sampling units. The NSO provides confidence intervals because the quarterly sample is smaller than the annual survey.

The bulletin also advises caution because:

• the rural sampling frame remains based on Census 2011;

• classifications and parts of the questionnaire changed in 2026;

• short-term activity can fluctuate; and

• the survey covers only the unincorporated non-agricultural economy, not the entire economy.

The results should therefore not be directly equated with quarterly GDP trends.

Policy Relevance

• Enterprise growth should be assessed alongside job quality. Rising establishment numbers are less meaningful if regular hired employment continues to lose share.

• Urban expansion needs business infrastructure. Credit, workspaces, logistics and municipal services will increasingly shape the performance of small urban enterprises.

• Digitalisation provides an access channel, not proof of formalisation. Policy can use widespread digital payments to improve credit histories and scheme delivery without conflating usage with regulatory compliance.

• Comparable data must be protected. Reclassification under NIC-2025 should be clearly accounted for before drawing conclusions about a shift from trade towards services.

• Women’s employment needs deeper analysis. The 30.56% headline share should be supplemented by information on sector, earnings, ownership and whether work is paid or unpaid.

Follow the Full Bulletin Here: Quarterly Bulletin of Unincorporated Sector Enterprises, April–June 2026