India’s unincorporated sector expands by 9.2 pc in April-June, jobs up by 6.5 pc

New Delhi, Aug 21 (IANS) The estimated number of unincorporated establishments in India’s non-agricultural sector increased by 9.20 per cent to 8.67 crore in April–June this year, from 7.94 crore in April–June 2025 despite the global uncertainties, according to a statement issued by the National Statistics Office (NSO) on Friday.

Employment in the unincorporated sector rose to 13.70 crore during the April–June 2026 quarter, registering a year-on-year growth of 6.55 per cent over the corresponding figure of 12.81 crore in the same quarter of the previous year.

This growth was primarily driven by the services sector, which recorded an increase of over 21 per cent in its estimated workforce, the statement said.

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.

This is slightly higher than the corresponding figure for April-June 2025. The gradual increase in the percentage share of female workers highlights the growing importance of the sector in generating employment opportunities for women and promoting inclusive economic participation, the statement said.

Working owners continued to account for the largest share of the workforce in the unincorporated sector for the April–June quarter, constituting 62.38 per cent of total workers, compared to 60.18 per cent in the corresponding quarter of the previous year. In contrast, the share of hired workers witnessed a marginal decline, falling to 22.77 per cent from 24.38 per cent over the same period.

The urban sector outperformed the rural sector in employment growth during April–June 2026, registering a robust year-on-year growth of over 12 per cent, compared with 0.7 per cent growth in the rural sector.

Cashless transactions gained widespread acceptance, with about 80 per cent of establishments adopting cashless modes of transaction including online banking, UPI, POS devices, and other digital payment mechanisms. Internet usage among enterprises in the unincorporated non-agricultural sector reflects an encouraging trend of digital adoption across establishments in the economy.

Data on ICT usage indicates that around 82 per cent of establishments in the unincorporated sector have used the internet for entrepreneurial purposes, the statement added. Further, nearly 80 per cent of establishments have adopted cashless modes of transaction, the statement added.

–IANS

sps/na