In a first, jobs in unincorporated establishments cross 15-crore mark

• The National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation released quarterly estimates of the unincorporated non-agricultural sector for the quarter January to March 2026.

• The Quarterly Bulletin on Unincorporated Sector Enterprises (QBUSE) for January-March 2026 represents the quarterly edition of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and provides key estimates at more frequent intervals.

• The number of unincorporated establishments in the non-agriculture sector has surged to over 9 crore, and employment under these firms crossed the 15-crore mark in the January-March quarter.

• Unincorporated non-agricultural establishments are establishments which are not incorporated, that means neither registered under Companies Act, 1956 nor under Companies Act, 2013. 

• The unincorporated non-agricultural sector plays an important role in the Indian economy contributing significantly to employment, gross domestic product and the overall socio-economic landscape. 

• This sector not only sustains livelihoods for millions but also acts as a backbone for the incorporated sector by supplying goods and services, reinforcing its role in the domestic value chain.

• Recognising this importance, NSO launched ASUSE as an annual survey in 2021-22.

• The Annual Survey of Unincorporated Sector Enterprises (ASUSE) is conducted with the primary objective of systematically collecting information on operational, financial, and structural characteristics of these units. 

• The survey results serve as essential inputs for policymakers in both the government and private sector, guiding informed decision-making and strategic planning.

Highlights of the survey:

i) The unincorporated non-agricultural sector recorded a year-on-year growth of 16.69 per cent in the number of establishments, with the estimated number of unincorporated establishments rising to 9.16 crore during January-March 2026, compared to 7.85 crore in the corresponding quarter of the previous year. The rural sector emerged as the primary driver of this growth, registering a notable increase of 20.46 per cent. The urban sector witnessed a growth of 12.59 per cent during the same period.

ii) Employment in the unincorporated non-agricultural sector reached 15.17 crore in January-March 2026, crossing the 15-crore mark for the first time. The sector recorded a year-on-year growth of 15.51 per cent over the corresponding quarter of the previous year, highlighting its growing significance in generating employment opportunities for a large section of the population across sectors.

iii) Working owners continued to account for the largest share of the workforce in the unincorporated sector for the January-March 2026 quarter, constituting 60.97 per cent of total workers, compared to 58.29 per cent in the corresponding quarter of the previous year. In contrast, the share of hired workers witnessed a marginal decline, falling to 24.77 per cent from 26.86 per cent over the same period.

iv) Many unincorporated units depend on casual labour, migrant workers, and helpers who often shift to seasonal agricultural work and return either as an entrepreneur or as a worker when activity in the sector strengthens, leading to a rise in employment and establishments.

v) The growing importance of unincorporated enterprises in supporting the rural economy was further reflected in the robust growth of the rural workforce, which recorded an increase of 21.65 per cent during the period as against 10.39 per cent growth in urban sector.

(The author is a trainer for Civil Services aspirants.)