NSO Quarterly Bulletin Reveals Robust Growth and Formalization in India's Unincorporated Sector (July–Sept 2025)
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation, and Infrastructure
Institutions: Ministry of Statistics and Programme Implementation (MoSPI) | Ministry of Micro, Small and Medium Enterprises (MSME)
The National Statistics Office (NSO) has released the Quarterly Bulletin on Unincorporated Sector Enterprises (QBUSE) for July–September 2025, providing high-frequency data on the vital unincorporated non-agricultural sector. This sector comprises small-scale manufacturing, trade, and service units, which are crucial for employment generation and GDP contribution.
The total number of unincorporated establishments across India reached an estimated 7.97 crore (’00) in the July–September 2025 quarter, marking a marginal quarter-on-quarter increase. This represents a notable expansion compared to the annual estimate of 7.34 crore for ASUSE 2023-24. Employment in the sector remained broadly stable at approximately 12.86 crore workers (’00). Significantly, the urban workforce grew from 6.61 crore to 6.91 crore, indicating increased labor absorption and expanded economic activity in urban areas.
The workforce composition showed that Working Owners continue to hold the largest share (59.98%). However, the percentage share of Hired Workers increased to 25.91% in the current quarter, up from 24.38% in the previous one. The ‘Other Services’ sector accounts for the largest share of both establishments (43%) and workers (39%) among broad activity categories, followed by Trade and Manufacturing. Other Services also recorded the highest share of hired workers (29.29%).
Key operational indicators point to increasing formalization and digitalization:
Internet Use: The percentage of establishments using the Internet rose steadily to 39%.
Registration: The percentage of establishments registered under at least one Act/Authority was 37%, marking an increase of about two percentage points over the last quarter.
Female Workers: Female workers constituted 28.70% of the total employment in this quarter.
Policy Relevance: The acceleration in digitalization (39% internet use) and formalization (37% registered) in the unincorporated sector provides strong evidence that government schemes promoting MSME support and digital integration are effective. The rise in hired workers suggests growing firm-level stability and potential for improved social security coverage for the workforce, necessitating targeted policy support for Hired Worker Establishments (HWEs).
What is the Unincorporated Non-Agricultural Sector?→ The unincorporated non-agricultural sector consists of establishments that are not legally registered under the Companies Act, 1956 or 2013, such as proprietorships, partnerships, and Self-Help Groups (SHGs). These units operate in Manufacturing, Trade, and Other Services (excluding agriculture and construction) and form a substantial part of the informal economy, often characterized by small-scale operations.
Follow the full news here: Quarterly Bulletin of Unincorporated Sector Enterprises (QBUSE) July 2025 - September 2025