Number of unincorporated establishments grew by over 9% in April-June

The percentage of hired-worker establishments has decreased across sectors compared to the April-June 2025 quarter

Unincorporated establishments grew by over 9 per cent in the April-June quarter, a report by Statistics Ministry released on Friday showed. During this period, employment grew by over 6.5 per cent.Unincorporated establishments/enterprises refer to a business unit which is neither registered under Companies Act, 1956, nor under Companies Act, 2013. These units, ranging from small-scale manufacturers and service providers to trading establishments, constitute a significant portion of the economy. These enterprises are pivotal in generating employment, fostering entrepreneurship and contributing to the nation’s gross domestic product (GDP)According to a quarterly report, the estimated number of establishments in April-June this fiscal stood at 8.67 crore, compared to 7.94 crore in the corresponding quarter of last fiscal, indicating a growth of 9.2 per cent. During this period, the number of employed persons in these units rose to 13.70 crore from 12.86 crore, a growth of over 6.5 per cent.“This demonstrates a healthy labour market growth in the sector [over the same quarter last year], which is a major source of employment for variety of skilled or unskilled people across different socioeconomic background,” said the report. The proportion of establishments employing hired workers in the unincorporated non-agricultural sector was recorded at 12.13 per cent in the April-June quarter, with the percentage of workers hired on fairly regular basis estimated at 22.77 per cent.The percentage of hired-worker establishments has decreased across sectors compared to the April-June 2025 quarter. “Working owners, however, continued to account for the largest share in composition of workers, with their proportion rising from 60.18 per cent in the April-June 2025 quarter to 62.38 per cent in the April-June 2026 quarter,” said the report. urban sector leadsWhile expansion remained broad-based across sectors, the urban sector outpaced the rural sector in terms of growth. During the quarter under consideration, the urban sector recorded more than 15 per cent growth in the number of establishments and over 12 per cent growth in the workforce, compared with the corresponding quarter of the previous year, making it a key contributor to the overall growth of the unincorporated sector.Enterprise registration rose to 42.5 per cent, showing growth of over 7 percentage points, signalling increasing formalisation. Cashless transactions gained widespread acceptance, with about 80 per cent of establishments adopting cashless modes of transaction. “The participation of women in the workforce continued to strengthen, with women accounting for more than 30 per cent of total employment in the sector,” it said.The ‘other services’ sector recorded the highest growth among all sectors, with both establishments and employment increasing by over 21 per cent. This was followed by the manufacturing sector, which registered growth of over 10 per cent in the estimated number of establishments and 6.6 per cent in the estimated workforce. However, the unincorporated trade sector recorded a year-on-year decline of 7.88 per cent in the estimated number of establishments and 10.29 per cent in the estimated workforce, the report said.While the survey does not provide information on the specific factors underlying these changes, it is worth noting that the retail landscape has been undergoing significant transformation, including the expansion of e-commerce and quick-commerce platforms, alongside global economic challenges. Published on August 21, 2026