Archive · 21 Aug 2026
India’s Informal Sector Employment Rises 6.6% in Q1
India’s informal businesses employed more people in the April–June quarter than they did a year earlier.
The sector had about 137 million workers, which was a 6.6% increase.
However, employment was lower than in the previous three months.
Service businesses grew the fastest during the quarter.
The number of informal business establishments also increased, especially in cities.
Working owners made up the largest share of workers.
More than 30% of workers were women.
Many businesses used the internet and cashless payments, and more reported being registered.
India’s unincorporated non-agricultural sector employed 137 million workers in April–June, up 6.6% year-on-year.
Employment fell 9.7% from the previous quarter, compared with 15.5% growth in January–March.
The number of informal establishments rose 9.2% year-on-year to 86.73 million, led by 15.3% urban growth.
The other services sector recorded more than 21% growth in both establishments and employment.
About 82% of establishments used the internet for business, while nearly 80% used cashless transactions.
- Who
- India’s unincorporated non-agricultural businesses and their workers, as measured by the Ministry of Statistics and Programme Implementation (MoSPI).
- What
- Informal-sector employment rose 6.6% year-on-year to 137 million workers, while establishments increased 9.2% to 86.73 million.
- When
- April–June, the first quarter of FY27; the data was released on Friday.
- Where
- India, covering urban and rural unincorporated establishments.
- Why
- Growth was led particularly by the other services sector, although the ministry also noted global uncertainties during the quarter.
- Informal-sector workers
- 137 million in April–June, up from 129 million a year earlier
- Quarter-on-quarter change
- Employment declined 9.7% from the previous quarter
- Informal establishments
- 86.73 million, up 9.2% year-on-year
- Services growth
- Other services recorded more than 21% growth in establishments and employment
- Regular workers
- Workers hired on a fairly regular basis accounted for 22.8%, down from 24.4% a year earlier
- Women workers
- Women constituted more than 30% of total employment
- Digital adoption
- Around 82% of establishments used the internet and nearly 80% used cashless transactions
- Registration
- 42.5% of firms reported some form of registration, up 7 percentage points year-on-year