New Delhi, May 21: India’s unincorporated non-agricultural sector recorded strong growth during the January–March 2026 quarter, with the number of establishments crossing 9 crore and total employment in the sector surpassing 15 crore for the first time, according to the latest Quarterly Bulletin on Unincorporated Sector Enterprises (QBUSE) released by the National Statistics Office under the Ministry of Statistics and Programme Implementation.
The bulletin showed that the estimated number of establishments rose to 9.16 crore during the quarter, marking a year-on-year increase of 16.69 per cent compared to the same period last year. Rural India emerged as the key growth driver, recording a 20.46 per cent increase in establishments, while urban areas registered a 12.59 per cent rise.
Employment in the sector also witnessed significant expansion, reaching 15.17 crore workers — a 15.51 per cent increase over the corresponding quarter of the previous year.
Officials said the growth highlighted the increasing importance of the unincorporated sector as a major source of employment generation and local entrepreneurship across manufacturing, trade and services.
The services segment emerged as the strongest performing category within the unincorporated economy. According to the report, the number of establishments in the services sector increased by 24.82 per cent, while employment in the segment surged by more than 31 per cent compared to the same quarter last year.
The report noted that the rapid expansion reflected growing entrepreneurial activity and rising demand for local services across the country.
The quarterly estimates also indicated changing workforce patterns in the sector. Working owners accounted for nearly 61 per cent of the workforce during the January–March 2026 quarter, compared to around 58 per cent in the corresponding period last year. The share of hired workers declined marginally to 24.77 per cent.
The rural workforce in the unincorporated sector recorded particularly strong growth of 21.65 per cent, significantly higher than the 10.39 per cent growth seen in urban areas.
The bulletin highlighted a growing shift toward digital adoption among small enterprises. Around 81 per cent of establishments reported using the internet for entrepreneurial activities, while a similar proportion had adopted cashless transaction systems such as UPI, online banking and POS-based payments.
The survey also found increasing formalisation within the sector, with over 41 per cent of enterprises reporting some form of registration under regulatory frameworks.
Women’s participation in the sector remained substantial, with women accounting for nearly 29 per cent of total employment, slightly higher than the corresponding quarter last year.
The QBUSE bulletin forms part of the Annual Survey of Unincorporated Sector Enterprises (ASUSE), launched by the National Statistics Office to provide high-frequency indicators on the unincorporated non-agricultural economy.
According to the ministry, the survey covers unincorporated enterprises in manufacturing, trade and services sectors across rural and urban India, excluding agriculture and construction. Data collection for the quarter was conducted through Computer Assisted Personal Interviewing (CAPI) using tablet-based surveys.
Officials said the quarterly estimates are intended to provide policymakers and researchers with timely insights into one of the country’s most dynamic economic segments, while cautioning that quarterly movements may reflect short-term fluctuations and sampling variability.
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