Growth of India’s Unincorporated Sector: ASUSE 2023-24 Insights
The Annual Survey of Unincorporated Sector Enterprises (ASUSE) for the period of October 2023 to September 2024 has revealed significant findings about India’s unincorporated non-agricultural sector. Released by the Ministry of Statistics and Programme Implementation (MoSPI) on December 24, 2024, the survey highlights the sector’s growth, employment trends, and economic contributions. The detailed report and unit-level data are now accessible on the MoSPI website. This article delves into the key findings of ASUSE 2023-24, emphasizing the sector’s importance in the Indian economy.
Overview of the Unincorporated Sector
The unincorporated non-agricultural sector plays a crucial role in India’s economy. It provides employment to a vast number of people and contributes significantly to the Gross Domestic Product (GDP). The ASUSE 2023-24 results indicate a robust growth trajectory for this sector. The total number of establishments surged from 6.50 crore in 2022-23 to 7.34 crore in 2023-24, marking a remarkable growth rate of 12.84%.
Among the various sectors, “Other Services” saw the highest growth at 23.55%, followed closely by the manufacturing sector, which grew by 13%. Notably, retail trade and the manufacturing of wearing apparel accounted for a substantial portion of these establishments, with approximately 39% engaged in these activities. The states of Uttar Pradesh, West Bengal, and Maharashtra reported the highest number of establishments, reflecting regional variations in economic activity.
This growth in the unincorporated sector is vital for absorbing the workforce, especially in rural areas. The sector’s inclusivity allows it to provide diverse employment opportunities, making it a cornerstone of the Indian economy.
Employment Trends in the Unincorporated Sector
The ASUSE 2023-24 results reveal a significant increase in employment within the unincorporated non-agricultural sector. Over 12 crore workers were employed during this period, an increase of more than one crore from the previous year. This growth reflects a robust labor market and highlights the sector’s capacity to create jobs.
A notable trend is the increasing participation of women in this sector. The proportion of female workers rose from 25.63% in 2022-23 to 28.12% in 2023-24. Furthermore, around 58% of establishments in the manufacturing sector were headed by female proprietors. This shift indicates a growing empowerment of women in entrepreneurship and leadership roles within the unincorporated sector.
The distribution of employment is also noteworthy. More than one-third of the workforce is concentrated in Uttar Pradesh, Maharashtra, and West Bengal. This concentration underscores the need for targeted policies to support job creation in these states. The increase in employment opportunities in the unincorporated sector is a positive sign for the overall economic health of the country.
Economic Contributions and Growth Indicators
The Gross Value Added (GVA), a key indicator of economic performance, rose by 16.52% in the unincorporated sector, driven primarily by a 26.17% growth in the other services sector. The top three states contributing to GVA were Maharashtra, Uttar Pradesh, and Gujarat. This growth in GVA is indicative of the sector’s expanding economic footprint and its vital role in driving national economic growth.
Additionally, the survey noted an increase in the percentage of registered establishments, which rose from 36.80% in 2022-23 to 37.20% in 2023-24. This trend suggests a growing awareness among entrepreneurs about the benefits of formal registration, which can lead to better access to resources and support.
Investment in fixed assets also saw an uptick, with the average value rising from Rs. 3,18,144 in 2022-23 to Rs. 3,24,075 in 2023-24. This increase reflects improved capital investment in the sector. Furthermore, the outstanding loan per establishment increased, indicating better access to financing options for businesses. These indicators collectively highlight a positive economic outlook for the unincorporated sector.
Digital Adoption and Future Prospects
The ASUSE 2023-24 results also reveal a significant increase in the use of the internet for entrepreneurial purposes. The percentage of establishments utilizing the internet rose from 21.10% in 2022-23 to 26.70% in 2023-24. In rural areas, internet usage increased from 13.50% to 17.90%, while urban areas saw a rise from 30.20% to 37.00%. This trend towards digital adoption is crucial for enhancing business operations and competitiveness.
The growth in internet usage among trading establishments, which increased by 10 percentage points, signifies a shift towards digital platforms for business activities. This digital transformation can lead to improved efficiency, better market access, and enhanced customer engagement.
As the unincorporated sector continues to grow, it is essential for policymakers to support this transition. Initiatives that promote digital literacy and access to technology can further empower entrepreneurs and enhance the sector’s contribution to the economy. The ASUSE 2023-24 findings underscore the importance of this sector and its potential for future growth, making it a focal point for economic development strategies in India.
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