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Mapping the lag in India’s informal economy

26 Mar 2026
1 min

Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025: Key Findings

The Ministry of Statistics and Programme Implementation (MoSPI) has released the results of ASUSE for 2025, offering insights into the informal sector in India, focusing on unincorporated non-agricultural enterprises.

Sector Growth Overview

  • The total number of enterprises increased from 7.34 crore in 2023-24 to 7.92 crore in 2025, marking an 8% growth.
  • Employment in the sector rose by 74.5 lakh people, reaching approximately 12.8 crore workers, indicating a 6.2% increase.
  • MoSPI describes both the enterprise and employment growth as "healthy" and "robust," respectively.

Economic Productivity and Earnings

  • Gross Value Added (GVA) per worker:
    • Increased by 4.5% to Rs 1.56 lakh in 2025.
  • GVA per establishment:
    • Grew by 2.85% to Rs 2.52 lakh, indicating sluggish growth.
  • Earnings per hired worker:
    • Rose by just 3.9%, a significant drop from the previous period's 13% increase.

Comparison with National GDP Growth

  • India's GDP grew at approximately 9% in nominal terms, highlighting the informal sector's lag in growth and productivity.

Implications for Policy

  • ASUSE data is crucial for GDP estimation and policy formulation, particularly for MSMEs and textile sectors.
  • The findings highlight the importance of transitioning more workers into the formal sector.

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RELATED TERMS

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Formal Sector

Refers to economic activities and employment that are registered, regulated, and taxed by the government. Protections under the old labour regime primarily applied to this sector.

Micro, Small and Medium Enterprises (MSMEs)

A classification of businesses based on their investment and annual turnover. Lending to MSMEs is a significant component of Priority Sector Lending due to their role in employment generation and economic growth.

Gross Value Added (GVA)

GVA is a measure of the value added to a country's economy by the production of goods and services. It is calculated by subtracting the cost of intermediate goods and services from the total value of output.

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