GS 3: EconomyGS 1: Indian SocietyGS 2: Social JusticePrelims

2 cr informal workers in India's big cities; Hyd tops with 15.7 lakh, Pg15

MoSPI report reveals 2 crore informal workers in India's 46 major cities; Hyderabad tops with 15.7 lakh, highlighting urban informal sector's scale.

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Key Highlights:

  • Approximately 1.98 crore informal workers are employed in 1 crore informal establishments across India's 46 most populous cities.
  • Greater Hyderabad leads with 15.7 lakh informal workers, while Kolkata has the highest number of informal establishments at 8.84 lakh.
  • Six major cities, including Greater Hyderabad, Delhi, and Kolkata, account for 40% of all informal workers in these urban centers.
  • Roughly 26% (52 lakh) of informal workers in these cities are women, with Greater Visakhapatnam having the highest percentage at 42.5%.
  • The data is based on a report by the Ministry of Statistics and Programme Implementation (MoSPI), derived from the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2025.

Informal Workforce.png

Informal Workforce.png

Detailed Insights:

  • The MoSPI report provides a comprehensive statistical profile of 46 million-plus cities, focusing on urban unincorporated enterprises.
  • These 46 cities, spread across 17 states and Union Territories, contribute significantly to the national unincorporated non-agricultural sector.
  • They account for about 13% of establishments, 16% of workers, and 21% of Gross Value Added (GVA) of the unincorporated non-agricultural sector.
  • The ASUSE 2025 covers unincorporated, non-agricultural enterprises, excluding construction, which form a substantial part of the Indian economy.
  • Jaipur recorded the highest emolument per worker at Rs 2.33 lakh among unincorporated establishments with hired workers.
  • Pimpri-Chinchwad showed the highest GVA per worker at Rs 2.9 lakh, indicating higher productivity in its informal sector.
  • The findings challenge the common perception that the informal sector operates predominantly in rural areas, highlighting its significant urban presence.

Key Concepts Involved:

  • Informal Sector: Economic activities not formally regulated or protected by legal frameworks, often characterized by small-scale operations.
  • Unincorporated Enterprises: Businesses not legally registered as separate entities from their owners, common in the informal economy.
  • Gross Value Added (GVA): A measure of the value of goods and services produced in an area, industry, or sector of an economy.
  • Annual Survey of Unincorporated Sector Enterprises (ASUSE): A nationwide survey conducted by MoSPI to collect data on unincorporated non-agricultural enterprises.
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