Informal Sector Sees Job Growth and Increased Digital Engagement in 2025, According to MoSPI Survey

India's Informal Sector Expands, Digitizes in 2025

Key Highlights

• The number of establishments in India's informal sector rose to 7.92 crore in 2025, an 8 percent increase from 7.34 crore in 2023-24.
• Employment in the sector grew 6.2 percent, adding over 74 lakh jobs during the period.
• The sector now supports livelihoods for more than 12.8 crore workers, reinforcing its role as a backbone of India's economy.

Sector Performance

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• The services sector led expansion in establishments, while output growth was driven by trade, which recorded a sharp 17 percent increase.
• Overall Gross Value Added (GVA) growth reached 10.9 percent, driven by the expansion of trade.
• However, the pace of expansion has moderated compared with the previous period, with establishments growing 12.8 percent and employment rising 10 percent between 2022-23 and 2023-24.

Productivity and Income

• GVA per worker rose 4.5 percent, while wages increased 3.9 percent, suggesting gradual improvement in earnings but slower growth than the previous year.

Digitalization and Female Participation

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• The share of establishments using the internet jumped from 26.7 percent to 39.4 percent, signalling rapid integration of digital tools into operations.
• Women-owned enterprises increased to 27 percent, reflecting a gradual rise in female participation in entrepreneurship.