The use of digital technologies for business activities in India, especially Unified Payments Interface (UPI) for ordering, has increased significantly. According to a recent survey by the Department of Statistics, the use of the Internet for business purposes, be it for UPI payments or online ordering, has increased from 7.7 percent to 13.5 percent in rural areas and from 21.6 percent to 30.2 percent in urban areas in 2022-23. This represents an overall increase of 7.2 percentage points and highlights the rapid adoption of digital payment methods in the informal sector. As per reports, the MoSPI survey also revealed that 25.6 percent of the total workforce in 2022-23 is female. In establishments operating without permanent employees, women constituted 31 percent of the workforce. Also, 54 percent of the incorporated establishments in the manufacturing sector were run by women entrepreneurs, highlighting the significant role of women in the informal sector.
The informal sector was badly affected by the second wave of Covid-19 pandemic, as the number of establishments and employment declined. A gradual recovery started after the July quarter of 2021, as per earlier survey results that were released last month.
The total number of establishments in the unincorporated sector increased from nearly 6 lakh in 2021-22 to 6.5 lakh in 2022-23, an increase of about 5.9 percent. Among the major sectors, the ‘other services’ segment accounted for the largest share at 37.9 percent in 2022-23, followed by trade at 34.7 percent and manufacturing at 27.4 percent.
Retail accounted for more than 40% of the establishments in the sector, with around 30% in retail and around 11% in apparel manufacturing in 2022-23. Uttar Pradesh reported the highest number of establishments (both rural and urban), followed by West Bengal and Maharashtra for both 2021-22 and 2022-23.
Fixed assets of unincorporated non-agricultural establishments increased from Rs 2,81,013 crore in 2021-22 to Rs 3,18,144 crore in 2022-23, indicating improved capital investment in the sector. Outstanding loans per enterprise increased from Rs 37,408 crore in 2021-22 to Rs 50,138 crore in 2022-23, reflecting better access to credit in the sector.
The key findings of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2021-22 and 2022-23 were released in a factsheet by the Ministry of Statistics and Programme Implementation on June 14, the detailed results of which have now been announced.
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