Unincorporated sector employment crosses 15 crore mark

New Delhi: Unincorporated sector employment crossed 15 crore during January-March 2026 as the number of establishments in the non-agricultural sector rose sharply across the country, according to fresh NSO data released on Wednesday.

National Statistics Office said employment in the unincorporated non-agricultural sector reached 15.17 crore during the quarter. The sector recorded a year-on-year growth of 15.51 percent compared to the same period last year.

The estimated number of establishments increased to 9.16 crore during the quarter. This marked a 16.69 percent rise over the corresponding quarter of the previous year.

Officials said the rural sector drove the expansion with a growth rate of 20.46 percent. Meanwhile, the urban sector recorded a 12.59 percent increase.

The Ministry of Statistics and Programme Implementation stated that the services sector led the growth momentum. Establishments in the services segment increased by 24.82 percent, while employment in the sector rose by 31.13 percent.

The report also highlighted growing digital adoption among enterprises. Around 81 percent of establishments used the internet for entrepreneurial activities. Similarly, nearly 81 percent adopted cashless transaction systems, including UPI, online banking and POS devices.

Unincorporated sector employment driven by rural growth

The NSO said working owners accounted for the largest share of workers in the sector at 60.97 percent. In contrast, hired workers represented 24.77 percent of the workforce.

Rural employment growth remained significantly higher at 21.65 percent compared to 10.39 percent in urban areas.

The report stated that many unincorporated enterprises depended on casual labour, migrant workers and seasonal employment patterns linked to agriculture.

Women workers continued to maintain a strong presence in the sector. They accounted for around 29 percent of total employment during the quarter.

The survey further showed that 41.37 percent of establishments reported some form of registration under regulatory systems. Officials said this reflected growing formalisation within the sector.

The NSO conducted the survey through the Quarterly Bulletin on Unincorporated Sector Enterprises under the Annual Survey of Unincorporated Sector Enterprises framework.

Data collection covered manufacturing, trade and services establishments across rural and urban India through Computer Assisted Personal Interviewing methods.