The Ministry of Statistics and Programme Implementation (MoSPI) has released the factsheet for the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for the years 2021-22 and 2022-23. The findings reveal a significant impact of the second Covid lockdown on informal sector enterprises, followed by a robust recovery.
Initial Setback During the Second Covid Lockdown
During the April to July 2021 period, the number of unincorporated enterprises plummeted to 5.03 million due to the stringent lockdown measures. However, by the end of 2021-22, this number had surged to 59.7 million, showcasing the resilience of the informal sector. The upward trend continued, with the number of such enterprises increasing by 5.88% to reach 65 million in 2022-23.
Importance of the Unincorporated Sector
These unincorporated non-agricultural firms, encompassing manufacturing, trade, and other services (excluding construction), play a crucial role in the Indian economy. They contribute significantly to employment, gross domestic product (GDP), and the overall socio-economic landscape.
Comparative Data from Previous Surveys
In the ASUSE 2015-16, conducted as part of the NSS 73rd round, there were 63.3 million unincorporated establishments with 111.2 million workers. The latest surveys highlight the fluctuating numbers due to the pandemic but also indicate a recovery trajectory.
Employment Trends
The number of workers in these small businesses dropped to 8.56 million in the April-July 2021 period before recovering to 97.8 million for the entire 2021-22 year. By 2022-23, employment numbers rose to 109.6 million, though still slightly below the 2015-16 levels.
Economic Contributions
The gross value added by these establishments was Rs 13.4 lakh crore in 2021-22, which increased to Rs 15.42 lakh crore in 2022-23. For comparison, the 2015-16 survey recorded a gross value added of Rs 11.52 lakh crore.
Sector-Specific Growth
The other services sector saw the highest annual growth in employment at 13.42%, followed by the manufacturing sector at 6.34%. Most workers in this sector are informal, with average annual earnings rising from Rs 1,06,381 in 2021-22 to Rs 1,10,982 in 2022-23.
First Reports Since 2015-16
These reports are the first on informal sector enterprises since the 2015-16 survey. The National Sample Survey Office (NSSO) had intended to conduct annual surveys starting from October 2019 to March 2020 and April 2020 to March 2021. However, due to delays, the reports have only now been released. The ministry is currently conducting the ASUSE 2023-24 survey.
