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India’s informal sector records strong growth despite global headwinds

Justin, 25/11/202525/11/2025

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New Delhi, Nov 25 (IANS) Despite global headwinds, both the number of establishments and overall employment in India’s unincorporated non-farm sector enterprises recorded strong growth in the July-September quarter of 2025 compared to the same quarter last year, according to a statement issued by the Statistics Ministry on Tuesday.

The estimated number of establishments increased to 7.97 crore in the July-September quarter this year, from 7.34 crore in the same quarter last year. This also marks an increase from the estimated 7.94 crore establishments in the preceding April-June quarter of 2025.

Employment in the non-agricultural sector combined stood at 12.86 crore, showing a significant increase from the figure of over 12 crore workers recorded in the same period last year.

Internet usage among enterprises in the region grew steadily from 36 percent in April-June 2025 to 39 percent during July-September 2025.

The proportion of establishments employing hired labor in the unincorporated non-agricultural sector was recorded at 13.41 per cent in the quarter, showing a marginal increase over the previous quarter.

Like previous quarters, the share of working owners remained the largest (59.98 per cent) in the July-September 2025 quarter. However, the percentage share of workers hired during the quarter increased from 24.38 per cent in April-June to 25.91 per cent in the quarter.

The increase in the estimated urban workforce from 6.61 crore (previous quarter) to 6.91 crore (current quarter) indicates an increase in employment in enterprises in urban areas, reflecting greater labor absorption and expanded economic activity during the period.

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There was a significant recovery in the unincorporated manufacturing sector in the July-September quarter, with both employment and establishment numbers improving compared to the previous quarter. The share of establishments in the manufacturing sector increased from 26 percent to 27 percent, and the share of employment in the manufacturing sector increased from 26 percent to 28 percent.

The statement said the female workforce remained dominant, accounting for 28.7 percent of total employment in the sector.

–IANS

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