The NSO survey shows a small group of districts with part of the informal economy | Today’s news
New Delhi: A small number of districts account for a surprisingly large share of India’s informal or unregistered economy. According to the first estimates of the National Statistics Office (NSB) at the district level, the top 50 contribute almost a third of its enterprises, workers and gross value added (GVA). The data gives policymakers a clearer picture of where economic activity is concentrated and where it is lagging.
The estimates cover 757 out of 770 districts. This 2025 survey said it covers the entire geographical area of India, except for some villages in the Andaman and Nicobar Islands, which are difficult to reach.
The findings, released on Thursday, are based on the Annual Survey of Enterprises in the Unincorporated Sector (ASUSE) 2025 and offer the first detailed county-level picture of the scale, employment structure and productivity of businesses operating outside the corporate sector. The survey includes non-agricultural enterprises not registered in the commercial register across production, trade and other services.
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At the top, the concentration is even more pronounced. The top 10 districts, ranked by the number of unregistered businesses, together account for about one-tenth of the businesses, workers and GVA generated by the sector, the NSO estimate said.
The top 10 districts are spread across Gujarat, Telangana, Uttar Pradesh and West Bengal, while the top 50 are spread across 12 states, including Maharashtra, Karnataka, Tamil Nadu, Kerala, Rajasthan, Punjab, Odisha and Bihar.
The data provides a more detailed view of regional economic activity than state-level estimates, potentially allowing government interventions to be targeted at districts with a high concentration of businesses or those lagging behind in productivity, the Ministry of Statistics and Program Implementation (MoSPI) said in a statement.
According to the survey, the extent of the unregistered sector varies significantly in individual districts. Roughly one-third of the districts have more than one million unregistered businesses each, while about 9% have fewer than 10,000 businesses.
Only 16 districts have more than five million devices each. West Bengal accounts for eight of these 16 districts, followed by Maharashtra with three and Gujarat with two. Karnataka, Telangana and Uttar Pradesh have one district each in this category, according to the survey.
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The concentration of activity within individual states is also significant. Surat accounts for 19.43% of the estimated unregistered businesses in Gujarat, while Rangareddy contributes 23.53% of Telangana’s total. North 24 Parganas accounts for 15.99% of West Bengal’s businesses and Pune for 9.14% of Maharashtra’s businesses.
The survey points to large differences in productivity. GST per worker exceeds the all-India average ₹1.56 lakh in 280 districts, indicating relatively higher economic productivity in these localities. In the other 331 districts, VAT per worker is estimated at ₹1.0-1.5 million.
The findings also point to substantial regional differences in women’s participation in the informal economy. In 237 districts, women make up at least one-third of the workforce, while in 25 districts, they make up more than half of the total workforce.
The highest proportions of unregistered businesses run by women are concentrated in Telangana, Manipur and Meghalaya. Mizoram stands out in that women-owned businesses account for at least half of businesses in every district of the state.
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Estimates include indicators related to number of facilities and workers, ownership and employment structure, female participation, registration status, benefits and VAT per facility and worker.
The latest exercise follows MoSPI’s earlier publication of a statistical profile of the unregistered sector in over 46 million cities. Unlike the city-level exercise, the new estimates provide a broader view at the district level, including corresponding estimates for the million-plus cities located in the respective districts.
