The unincorporated non-agricultural sector in India experienced significant growth in the first quarter of calendar year 2026, with employment reaching 15.17 crore, a 15.51% increase from the previous year. The number of unincorporated establishments also rose by 16.69% to 9.16 crore, as per the National Statistics Office’s quarterly bulletin.
The growth was primarily driven by the rural sector, which saw a substantial 20.46% increase, while the urban sector grew by 12.59% during the same period. Around 81% of establishments in this sector utilized the internet for business purposes and embraced cashless transactions, according to the Ministry of Statistics & Programme Implementation.
Notably, women constituted over 29% of the total workforce in the unincorporated sector. Working owners continued to dominate the sector’s workforce, accounting for 60.97% of total workers in the first quarter of 2026. Meanwhile, the share of hired workers slightly decreased to 24.77% during this period.
The rural workforce saw a robust growth of 21.65%, outpacing the urban sector’s 10.39% growth. Many unincorporated units relied on casual labor, migrant workers, and helpers who transitioned between seasonal agricultural work and non-agricultural activities, contributing to increased employment and establishment numbers.
The unincorporated services sector also witnessed substantial expansion, with a 24.82% rise in establishments and a 31.13% growth in the workforce.
