Archive · 4 Sep 2025
India's Informal Manufacturing Sector Shows Downturn After GDP Rise
Recently, the Indian government said the economy grew faster than expected.
However, a new report shows that the small, informal businesses, especially those that make things, are having a tough time.
Fewer of these businesses are operating, and fewer people are working in them.
The good news is that more people are working for themselves in their own businesses.
This shift is particularly seen in manufacturing.
Even though the economy is growing overall, this report raises some concerns about these small businesses.
The number of informal manufacturing enterprises decreased by 4.7% in April-June 2025.
Employment in the unincorporated manufacturing sector fell by 9.3% in April-June 2025.
Total informal sector employment decreased by 2.1% in April-June 2025.
The total number of informal enterprises rose by 1.1% in April-June 2025.
The share of working owners increased, indicating a shift towards self-employment.
- Who
- India's unincorporated sector enterprises
- What
- Experienced a decrease in the number of manufacturing enterprises and employment.
- When
- April-June 2025
- Where
- India
- Why
- Due to a reduction in establishments hiring workers and a shift towards self-employment.
- Total Informal Enterprises (April-June 2025)
- 7.94 crore
- Manufacturing Enterprises Decline (April-June 2025)
- 4.7%
- Manufacturing Employment Drop (April-June 2025)
- 9.3%
- Total Informal Sector Employment (April-June 2025)
- 12.86 crore
- Share of Working Owners (April-June 2025)
- 60.18%
- Share of Working Owners (Jan-March 2025)
- 58.29%
Sources
India’s Unincorporated Sector Drives Employment Surge, Crosses Record 13 Crore; What's The Reason Behind It
Job creation poses big policy challenge
Number of workers in unincorporated enterprises declines to 12.85 cr in April-June: Govt survey
Employment at unincorporated enterprises down 2% on quarter in April-June