India's Informal Economy Is Growing, But Productivity and Wages Are Falling Behind
India's informal sector grew in 2025, both in the number of enterprises and in employment.
Kartavya News Desk
What ASUSE 2025 Found
India's informal sector added 58 lakh enterprises and 74.5 lakh workers in 2025. But productivity growth at 4.5 percent and earnings growth at 3.9 percent lag far behind nominal GDP growth of near 9 percent.
Unpacking the Productivity Gap
GVA per worker reached Rs 1.56 lakh and GVA per establishment Rs 2.52 lakh in 2025 - both growing far slower than the wider economy. Earnings growth collapsed from 13 percent in 2024 to 3.9 percent in 2025.
Why the Survey Data Matters Beyond Headlines
ASUSE figures directly feed into India's national GDP calculation and inform ministry-level decisions on MSME policy, textiles regulation, and labour welfare programmes.
The Case for Faster Formalisation
Formalisation gives workers access to credit, social insurance, and provident fund benefits. GST registration, Udyam registration, and PM SVANidhi are available tools. The ASUSE data suggests the pace needs to accelerate.
Survey Source
MoSPI publishes ASUSE results and methodology at mospi.gov.in.