Number of non-farm firms grew 13% to 7.3 crore: Govt survey | Company Business News

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New Delhi: The number of non-farm firms in the country comprising proprietorships, partnerships and self-help groups increased 12.84% to 7.34 crore, the Union statistics ministry said, citing an annual survey of enterprises other than companies for the period October 2023 to September 2024.

The ministry said in a statement that its ‘annual survey of unincorporated sector enterprises results for 2023-24’ highlighted “significant growth in establishments, employment, and productivity in the unincorporated non-agricultural sector,” showing its recovery from pandemic-related challenges and its resurgence with renewed momentum.

While a large number of the enterprises covered would be proprietorships—for example, small shops run by individuals, these also include partnerships and self-help groups. Chief economic advisor to the government V. Anantha Nageswaran, who was present at the release of the survey by the statistics ministry, said that that the term ‘unincorporated’ doesn’t mean ‘informal.’

Saurabh Garg, secretary in the ministry of statistics and programme implementation, said the increase in the number of enterprises in 2023-24 from the year ago period was “an extremely healthy growth.”

The survey showed that manufacturing sector accounted for a little more than a fifth of the gross value added among these enterprises, while trade accounted for a little more than a third. Other services accounted for 44% of the gross value added.

These entities employed 12 crore people during the survey period, nearly 10% more than the 10.9 crore people employed in the previous annual survey period. This reflected “robust labour market growth,” the ministry said.

The share of women-owned proprietary establishments jumped from a near 23% in 2022-23 to 26.2% in the 2023-24 period, indicating “a positive shift in the participation of women in business ownership,” the ministry said.

Compared to the 7.34 crore non-farm, non-company enterprises, the number of businesses incorporated in India as companies are fewer at 17.9 lakh, signifying that the vast majority of businesses are small scale.

The statistics ministry’s statement showed that there were 5.97 crore establishments in India during the survey period of 2021-22. This, however, is fewer than the 6.3 crore non-agricultural, unincorporated enterprises reported in the 73rd round of National Sample Survey held during 2015-16.

Both the surveys use the same methodology, a person informed about the surveys told Mint. The person, who spoke on the condition of anonymity, said that covid-related shock could be a reason for the gap in the two figures.

The survey result comes at a time when the rural economy is reported to be picking up and two-wheeler sales have seen a 14% year-on-year jump in the April-November period of this fiscal year, to 1.32 crore units.

The ministry said that the average emolument per hired worker also increased by 13% in 2023-24, compared to 2022-23, signaling improvements in wage levels.

“This wage growth serves as a catalyst, strengthening the labour market, enhancing productivity, and fuelling broader economic demand. The highest increase in this metric was observed in manufacturing sector with a growth of little more than 16%,” the ministry said.

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