Women-owned firms rise to 26.2pc in informal sector, wages jump 13pc

New Delhi, Dec 24

The percentage of female-owned proprietary establishments in India’s unincorporated sector has increased from 22.9 per cent in 2022-23 to 26.2 per cent in 2023-24, according to the annual survey of the Ministry of Statistics released on Tuesday.

"This trend indicates a positive shift in the participation of women in business ownership, highlighting an increase in female entrepreneurship over the given period (October 2023– September 2024), states the Annual Survey of Unincorporated Sector Enterprises (ASUSE).

The average emolument per hired worker also increased by 13 per cent in 2023-24 compared to the previous year, 2022-23, signalling improvements in wage levels.

This wage growth serves as a catalyst, strengthening the labour market, enhancing productivity, and fuelling broader economic demand. The highest increase in this metric was observed in the manufacturing sector with a growth of a little more than 16 per cent, the survey further states.

It also highlights the deeper digital penetration as the percentage of establishments using the internet has grown significantly from 21.1 per cent in 2022-23 to 26.7 per cent in the ASUSE 2023-24. This substantial growth reflects a strong trend toward digital adoption among establishments, highlighting the increasing reliance on the internet for business operations.

The ASUSE 2023-24 results highlight significant growth in establishments, employment, and productivity in the unincorporated non-agricultural sector, demonstrating the sector's recovery from pandemic-related challenges and its resurgence with renewed momentum. The unincorporated non-agricultural sector plays an important role in the Indian economy contributing significantly to employment, Gross Domestic Product and the overall socio-economic landscape. This sector not only sustains livelihoods for millions but also acts as a backbone for the incorporated sector by supplying goods and services, reinforcing its role in the domestic value chain.

The ASUSE is carried out with the primary objective of measuring various economic and operational characteristics of unincorporated non-agricultural establishments in manufacturing, trade and other services sectors (excluding construction). The survey collects data on various economic characteristics of this sector including the number of workers, GVA, emoluments paid, fixed assets owned, and outstanding loans, besides, different types of operational characteristics such as type of ownership, nature of operation, registration status and use of ICT.

✔️ Women-owned firms rise to 26.2pc in informal sector, wages jump 13pc

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