Number of non-farm enterprises rises 13% to Rs 7.3 crore: Government survey

New Delhi: The number of non-farm enterprises in the country consisting of sole proprietorships, partnerships and self-help groups increased by 12.84 per cent to 73.4, the Union Statistics Ministry said, citing the annual survey of businesses other than companies during October 2023. Crores of rupees. September 2024.

The ministry said in a statement that its “Annual Survey of Unincorporated Sector Business Enterprises 2023-24” highlighted “significant growth in establishments, employment and productivity in the unincorporated non-agricultural sector”, indicating that the sector has recovered from pandemic-related has recovered from its challenges and is resurrecting with new momentum.

While most businesses covered are sole proprietorships, such as small shops run by one person, partnerships and self-help groups are also included. The term “unincorporated” does not mean “informal”, said V. Anantha Nageswaran, the government’s chief economic adviser who was present at the Statistics Department’s announcement of the survey results.

Saurabh Garg, secretary of the Ministry of Statistics and Program Implementation, said the increase in the number of establishments in 2023-24 over the same period last year is an “extremely healthy growth”.

The survey shows that manufacturing accounts for a little more than one-fifth of the total added value of these enterprises, and trade accounts for a little more than one-third. Other services accounted for 44% of total value added.

These entities employed 120 million people during the survey period, an increase of nearly 10% from the 109 million people employed during the previous year’s survey period. The ministry said this reflected “strong labor market growth”.

The ministry said the share of private businesses owned by women jumped from nearly 23 per cent in 2022-23 to 26.2 per cent in 2023-24, indicating a “positive shift in women’s participation in business ownership”.

The number of companies incorporated in India is smaller at 1.79 million compared to Rs 734 crore of non-agricultural, non-corporate businesses, meaning the vast majority of businesses are smaller.

A statement from the Ministry of Statistics revealed that there were 5.97 billion establishments in India during the 2021-22 survey period. However, this is less than the 6.3 billion non-agricultural unincorporated enterprises reported in the 73rd round of the National Sample Survey in 2015-16.

A person familiar with the investigation told reporters that both investigations used the same method Mint. The person, who spoke on condition of anonymity, said coronavirus-related shocks may have contributed to the discrepancy between the two figures.

The findings come amid reports that the rural economy is recovering, with two-wheeler sales rising 14 per cent year-on-year to 1.32 billion units between April and November this fiscal.

The average remuneration per employed worker has also increased by 13 per cent in 2023-24 compared to 2022-23, indicating an improvement in wage levels, the ministry said.

“Wage growth acted as a catalyst, strengthening the labor market, boosting productivity and stimulating demand in the wider economy. The highest increase in this indicator was in the manufacturing sector, which increased by just over 16%,” the ministry said.