Women-Owned Firms Rise to 26.2% in Informal Sector, Wages Up 13%

By siliconindia  |  Wednesday, 25 December 2024, 08:59:04 AM IST

Women-Owned Firms Rise to 26.2% in Informal Sector, Wages Up 13%
The share of female-owned proprietary establishments in India’s unincorporated sector rose from 22.9% in 2022-23 to 26.2% in 2023-24, according to the Ministry of Statistics' Annual Survey of Unincorporated Sector Enterprises (ASUSE). The data indicates a growing trend in female entrepreneurship during the period from October 2023 to September 2024.  
The survey also reported a 13% increase in the average emolument per hired worker in 2023-24 compared to the previous fiscal year, reflecting an improvement in wage levels. The manufacturing sector witnessed the highest wage growth, exceeding 16%, underscoring robust recovery and productivity gains in this critical area.  
“This wage growth acts as a catalyst for strengthening the labour market, enhancing productivity, and driving broader economic demand”, the report noted.  
A notable trend highlighted in the ASUSE 2023-24 was the growing digital adoption among establishments. The percentage of establishments leveraging internet services surged from 21.1% in 2022-23 to 26.7% in 2023-24, demonstrating deeper digital penetration and increasing reliance on technology for business operations.  
The unincorporated non-agricultural sector, which encompasses manufacturing, trade, and services (excluding construction), showed signs of strong recovery from pandemic-induced challenges. The survey reported significant growth in the number of establishments, employment, and productivity. This sector continues to play a vital role in India’s economy by providing employment, contributing to GDP, and supporting the incorporated sector through the supply of goods and services.  
The survey also underscored the socio-economic significance of the unincorporated sector as a backbone of India’s domestic value chain. Sustaining millions of livelihoods, the sector has emerged as a critical component of the country’s economic fabric.  
The ASUSE captures various economic characteristics, including worker numbers, gross value added (GVA), emoluments, fixed assets, and operational details such as ownership type, nature of operation, and the use of ICT.  
The findings reflect not only the sector's resilience but also its growing dynamism, with increased female participation, higher wages, and deeper technological integration driving its resurgence.

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