The Ministry of Statistics and Programme Implementation (MoSPI) is planning to introduce a high-frequency index for unincorporated enterprises, aiming to provide regular insights into the performance of India’s informal economy. While the official timeline is 2031, officials are working towards launching the index earlier.
The proposed index is expected to address a long-standing data gap by tracking economic activity across India’s largest employment segment. Although the country publishes regular indicators on inflation, industrial production, tax collections and corporate earnings, there is currently no high-frequency measure of the informal economy, which employs around 80% of India’s workforce while contributing nearly 50% of economic productivity.
According to MoSPI, unincorporated enterprises include non-agricultural businesses that are not registered under the Companies Act, such as kirana stores, neighbourhood retailers, restaurants, transport operators, repair shops, small manufacturers, beauty salons, traders and home-based businesses. Many of these businesses are registered under GST or Udyam but are still classified as unincorporated enterprises.
The Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2024–25 reported 79.2 million unincorporated establishments in 2025, up from 73.4 million in 2023–24. Employment also increased from 120.6 million to 128.1 million during the same period. More recent quarterly estimates show the number of unregistered enterprises reached 91.7 million in the March quarter of FY26, employing 151.7 million people.
The new index is expected to provide policymakers, including the Reserve Bank of India (RBI), with a clearer picture of demand conditions across the informal economy. By offering regular data on small businesses, the index could improve monetary policy decisions, strengthen GDP estimates and help governments identify economic slowdowns earlier.
The index could also support businesses and investors by providing better visibility into consumer demand and economic activity. Companies in sectors such as FMCG, automobiles, construction, banking and financial services may use the data to assess market conditions, while governments could design more targeted policy interventions based on sector-specific trends.
The initiative forms part of MoSPI’s broader effort to modernise India’s statistical system. Alongside the proposed index, the ministry is updating GDP calculations, expanding the use of ASUSE and Periodic Labour Force Survey (PLFS) data, publishing quarterly reports on unincorporated enterprises and preparing to launch the Index of Service Production with FY25 as the new base year.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.