Small Businesses Drive Economic Recovery

A recent survey reveals that small businesses across manufacturing, trade, and services in India have employed more than 12 crore workers between October 2023 and September 2024, marking an addition of over one crore employees since 2022-23. The total number of units has also risen from 6.5 crore to over 7.3 crore in 2023-24, signaling a robust recovery from the COVID-19 pandemic.

The Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24 highlights a 12.8% growth in the number of establishments and a 10.1% increase in total employment compared to the previous year. The services sector led this growth with a 23.6% rise in establishments, 17.9% in employment, and 26.2% in gross value added.

Average emoluments per hired worker rose by 13% to Rs 141,071 in 2023-24. Female-owned proprietary establishments increased from 22.9% to 26.2%, and internet usage among establishments grew from 21.1% to 26.7%, reflecting greater technology adoption.