ASUSE 2023-24

The Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24 has revealed growth in India’s unincorporated non-agricultural sector. Released by the Ministry of Statistics and Programme Implementation (MoSPI) in December 2024, the survey marks key developments in employment, establishment growth, and economic contributions from October 2023 to September 2024.

Overview of ASUSE

• ASUSE aims to assess the performance of unincorporated non-agricultural establishments across India.
• The survey covers various sectors including manufacturing, trade, and services.
• It employs a multi-stage stratified sampling method, ensuring a representative sample from both urban and rural areas.
• The 2023-24 survey included data collection from nearly 500,000 establishments.

Growth in Establishments

The total number of establishments in the unincorporated sector rose from 6.50 crore in 2022-23 to 7.34 crore in 2023-24. This represents a growth of 12.84%. The “Other Services” sector saw the highest increase at 23.55%. Manufacturing also experienced a healthy rise of 13%.

Employment Trends

The unincorporated sector employed over 12 crore workers, reflecting an increase of more than one crore from the previous year. A portion of this workforce is concentrated in Uttar Pradesh, Maharashtra, and West Bengal. The proportion of female workers increased from 25.63% to 28.12%, denoting a trend towards gender inclusivity.

Economic Performance Indicators

The Gross Value Added (GVA) in the unincorporated sector grew by 16.52%. This growth was largely driven by a 26.17% increase in the “Other Services” sector. The top contributors to GVA were Maharashtra, Uttar Pradesh, and Gujarat.

Digital Adoption

There has been a marked increase in the use of the internet for entrepreneurial purposes. Internet usage in rural areas rose from 13.50% to 17.90%. In urban areas, it increased from 30.20% to 37.00%. This reflects a growing reliance on digital platforms for business operations.

Financial Indicators

Average fixed assets per establishment increased from ₹3,18,144 to ₹3,24,075. Concurrently, outstanding loans per establishment rose from ₹50,138 to ₹53,710. This indicates improved access to capital and investment in the sector.

Demographics of Establishments

The survey found that about 58% of manufacturing establishments were headed by female proprietors. The retail trade and manufacturing of apparel remained the most activity categories, accounting for a substantial share of establishments and workforce.

Trends in Registration

The percentage of registered establishments increased from 36.80% to 37.20%. This indicates a positive trend towards formalisation within the unincorporated sector.

Survey Methodology

ASUSE employs an area frame for data collection. Establishments are sampled from census villages and urban blocks. Data is primarily collected through oral interviews, with some larger establishments providing annual data from audited accounts.

Questions for UPSC:

1. Critically analyse the impact of the unincorporated sector on India’s GDP growth.
2. Explain the significance of female participation in the unincorporated sector and its implications for economic development.
3. What are the challenges faced by unincorporated sector enterprises in India? Discuss with examples.
4. What is the role of digital technology in enhancing the efficiency of small-scale industries? How can it be further promoted?

Answer Hints:

1. Critically analyse the impact of the unincorporated sector on India’s GDP growth.

1. The unincorporated sector contributes to India’s GDP, with a reported Gross Value Added (GVA) growth of 16.52% in 2023-24.
2. Key sectors driving this growth include “Other Services” and manufacturing, which saw increases of 26.17% and 13% respectively.
3. The sector employs over 12 crore workers, increasing consumption and economic activity.
4. Growth in the number of establishments (from 6.50 crore to 7.34 crore) indicates expanding economic contributions.
5. The sector’s inclusivity helps absorb diverse labor, enhancing overall economic resilience and productivity.

2. Explain the significance of female participation in the unincorporated sector and its implications for economic development.

1. Female participation in the unincorporated sector increased from 25.63% to 28.12%, reflecting greater gender inclusivity.
2. Women-led establishments, particularly in manufacturing (58%), contribute to economic diversification and empowerment.
3. Increased female workforce participation can lead to improved household incomes and poverty alleviation.
4. Gender inclusivity encourages innovation and diverse perspectives, enhancing business performance.
5. Supporting female entrepreneurs can drive sustainable economic growth and development in local communities.

3. What are the challenges faced by unincorporated sector enterprises in India? Discuss with examples.

1. Access to finance remains a major challenge, with outstanding loans per establishment rising but still limiting growth.
2. Many enterprises operate informally, which can hinder their ability to access government support and resources.
3. Unincorporated sector enterprises often lack technological advancement, impacting productivity and competitiveness.
4. Market volatility and competition from larger firms pose risks to small-scale operations.
5. Skill gaps in the workforce can limit innovation and the ability to adapt to market changes.

4. What is the role of digital technology in enhancing the efficiency of small-scale industries? How can it be further promoted?

1. Digital technology improves operational efficiency, with internet usage for business rising from 21.10% to 26.70%.
2. It enables better market access, allowing small businesses to reach a wider customer base online.
3. Technology facilitates better inventory management and customer relationship management, enhancing productivity.
4. Government initiatives and training programs can further promote digital literacy among small-scale entrepreneurs.
5. Encouraging partnerships with tech firms can provide small industries with the resources needed to adopt digital solutions.