The number of self-employed small traders and unregistered business owners is increasing in India, but these individuals are earning less than workers working on a minimum wage, according to the latest report of the National Statistical Office (NSO) under the Union Ministry of Statistics and Program Implementation.
The Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025 provides detailed information on the functioning and economic health of small and unincorporated businesses in the non-agricultural sector. It includes key business statistics and economic indicators.
To prepare this report, a survey of 670,650 establishments across the country was conducted between January 2025 and December 2025. These included 294,318 establishments in rural areas and 376,332 establishments in urban areas.
The report shows that the number of small and unincorporated businesses in India is steadily increasing. By 2025, the number of such businesses is projected to reach 79.2 million, compared to 73.4 million in the previous survey, conducted in 2023-24. This means that more than 5.8 million new small and micro businesses were started in a single year.
This growth comes at a time when employment growth in the organised sector remains relatively slow. This means that a significant number of people are earning their livelihoods through small shops, household units, self-employment, repair work, local services, and small businesses.
7.5 million new jobs
The sector created nearly 7.5 million new jobs over the past year. According to the report, the non-agricultural unincorporated sector employed approximately 128.1 million people between January and December 2025, including self-employed individuals, salaried employees, unpaid family members, and other workers.
Compared to 2023-24, employment increased by 6.2 per cent, with approximately 7.45 million new jobs added. The number of workers in rural areas increased from 56.1 million to 60 million, and in urban areas from 64.5 million to 68 million. During this period, employment growth was 6.9 per cent in rural areas and 5.6 per cent in urban areas, while cities’ share of total employment slightly exceeded rural employment.
Less than daily wages
While the growth in the number of businesses may be seen as a sign of economic activity, the report also shows that the income, productivity and social security of these small businesses remain extremely weak.
“The average gross value added (GVA) per establishment during the survey period was recorded at Rs 2.5 lakh,” the report said. The average GVA per worker was recorded at Rs 1.6 lakh.
This means that most businesses in the unincorporated sector operate on a very small scale and have a limited number of workers per unit. If an establishment generates an average GVA of only Rs 2.5 lakh per year, this translates to approximately Rs 20,800 per month and approximately Rs 685 per day.
