Results of the annual survey of unincorporated sector enterprises (ASUSE) showed resilience of the informal sector – small entities like barber shops, cycle repair units – after the shock of the pandemic.Total number of establishments in the sector increased from 5.8 crore in 2021-22 to 6.5 crore in 2022-23, a growth of nearly 5.9%.
The survey period of ASUSE 2021-22, particularly April-June, was severely impacted by the second wave of the pandemic and the overall annual aggregate estimates were affected, according to the statistics office, which released a factsheet.
Among the sectors, the number of establishments in the other services sector grew by 15.1%, indicating a robust sectoral expansion, while the number of manufacturing entities rose by 2.2%, reflecting a gradual opening-up of the sector after the pandemic, the survey results showed.
“The survey reveals that average annual earnings for informal workers have increased between 2021-22 and 2022-23, indicating improved wage conditions in the sector, highlighting that effective economic policies to counter the impact of the pandemic had helped in recovery,” said Rajesh Shukla, MD & CEO of People Research on India’s Consumer Economy (PRICE), an economic think tank.
The gross value added (GVA), a key indicator of economic performance, saw annual growth of 9.8%, largely led by manufacturing and other service sectors. While manufacturing GVA increased by 19.1%, for other services, it rose by 18.9%. The unincorporated non-agricultural sector employed about 11 crore workers from Oct 2022 to Sept 2023, up from 9.8 crore in 2021-22, an increase of 7.8%, highlighting strength in labour market growth.
The maximum annual growth in employment during the period was in other services sector category at 13.4%, followed by the manufacturing sector at 6.3%. Majority of the workers in the non-agricultural unincorporated sector are informal workers and the survey showed that average annual earnings for these workers rose 4.3% to Rs 1,10,982 in 2022-23 from Rs 1,06,381 in 2021-22.