It said the growth was driven primarily by the trade (3.63%) and other services (3.13%) sectors, while the manufacturing sector contracted by 4.7% during the same period.
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The establishments in the unincorporated non-agricultural sector rose to 7.94 crore during April–June 2025, compared to 7.85 crore in the previous quarter, data released by the Ministry of Statistics & Programme Implementation (MoSPI) said on Wednesday.
It said the growth was driven primarily by the trade (3.63%) and other services (3.13%) sectors, while the manufacturing sector contracted by 4.7% during the same period.
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Employment in the sector crossed the 13 crore mark for the first time in January–March 2025, reaching 13.13 crore. However, it then eased to 12.86 crore in the April–June quarter.
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On fluctuation in employment estimates during April–June 2025, MoSPI said it is mainly linked to reduction in the number of establishments engaging hired workers and a moderate performance of the unincorporated manufacturing sector in the quarter that witnessed the share of employment of the manufacturing sector falling by more than 2 percentage points in comparison to the previous quarter.
The data also highlighted that the share of working owners rose from 58.29% in January to March quarter to 60.18% in the subsequent quarter, suggesting a shift towards self-employment and entrepreneurial activities.
The shift was particularly evident in manufacturing, where the share of hired workers saw the steepest decline, accompanied by the highest increase in working owners, signalling a strong move towards owner-driven enterprises.
The rural workforce increased from 5.97 crore to 6.25 crore during this period, indicating the rising role of unincorporated enterprises in rural economic activity.
Women accounted for over 28% of the workforce in both quarters, showcasing the sector’s importance as a driver of gender-inclusive growth and entrepreneurship.
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