A recent report by the Ministry of Statistics and Programme Implementation (MoSPI) highlights the significant role of India's informal non-farm sector, revealing key districts driving its economic activity. The study, titled "Unincorporated Sector at the District Level: Insights from ASUSE 2025," covers the survey period from January to December 2025, marking the first time such comprehensive district-level estimates have been disseminated from a nationwide survey.
West Bengal's Dominance in Informal Employment
North 24 Parganas district in West Bengal has emerged as a leader, boasting the highest number of unincorporated non-agricultural enterprises and employing the largest workforce within this sector. The district recorded an astounding 16.59 lakh establishments, providing jobs to 21.3 lakh workers. Another West Bengal district, South 24 Parganas, also featured prominently with 10.29 lakh firms and 12.4 lakh workers.
Key Findings Across States
- Top 10 Districts: These are concentrated across four states: Gujarat, Telangana, Uttar Pradesh, and West Bengal.
- Top 50 Districts: Spread across a broader twelve states, including Bihar, Karnataka, Kerala, Maharashtra, Odisha, Punjab, Rajasthan, and Tamil Nadu, in addition to the top four.
- Economic Contribution: The top 10 districts collectively account for approximately one-tenth of the total establishments, workers, and Gross Value Added (GVA) generated by the informal non-farm sector. The top 50 districts contribute nearly one-third of these metrics.
GVA and Regional Disparities
While West Bengal districts lead in establishment and worker numbers, their GVA per establishment was relatively lower, with North 24 Parganas at Rs 1.59 lakh and South 24 Parganas at Rs 1.62 lakh. In contrast, Mahe district in Puducherry reported the highest GVA per establishment by far, reaching Rs 51.47 lakh, despite having only 2,856 establishments and 5,927 workers.
Surat in Gujarat also demonstrated robust economic output, with 8.51 lakh firms employing 17.4 lakh workers and a GVA of Rs 4.39 lakh per establishment. Satara district in Maharashtra registered a high GVA per establishment of Rs 15.79 lakh, alongside 1.33 lakh establishments and 2.42 lakh workers.
Workforce Demographics and Distribution
The report also shed light on the gender composition of the workforce, noting that women constitute one-third of the total workforce in the unincorporated sector across 237 districts. Geographically, roughly one-third of all districts nationwide house over 100,000 unincorporated establishments each. Conversely, about 9% of districts have fewer than 10,000 such firms. A select 16 districts, including eight from West Bengal, three from Maharashtra, two from Gujarat, and one each from Karnataka, Telangana, and Uttar Pradesh, each host more than 500,000 unincorporated establishments.
The findings underscore the diverse landscape of India's informal economy, highlighting both concentrations of activity and significant regional variations in productivity and employment.