NSO survey shows a tiny bunch of districts with a chunk of informal economy
According the survey, the scale of the unincorporated sector varies sharply across districts. Roughly one-third of the districts have more than one lakh unincorporated establishments each, while about 9% have fewer than 10,000 establishments.
A recent survey by India's National Statistics Office (NSO) reveals that a limited number of districts contribute significantly to the country's informal or unincorporated economy. The top 50 districts make up nearly a third of the sector's establishments, workers, and gross value added (GVA). These districts were identified from 757 out of the total 770 districts in India, excluding some remote Andaman & Nicobar Islands villages.
The survey, conducted in 2025, offers a detailed district-level perspective on the scale, employment structure, and productivity of businesses operating outside the corporate sector. It covers unincorporated non-agricultural establishments in manufacturing, trade, and other services. Notably, the top 10 districts account for about one-tenth of the sector's establishments, workers, and GVA.
These districts are located in Gujarat, Telangana, Uttar Pradesh, and West Bengal, with the remaining top 40 districts spread across 12 other states.
The unincorporated sector's size varies widely across districts. Roughly one-third of the districts have over 100,000 unincorporated establishments each, while around 9% have fewer than 10,000 establishments. Only 16 districts boast more than 500,000 establishments. West Bengal and Maharashtra lead with eight and three districts, respectively, while Gujarat and Karnataka each have two. Karnataka, Telangana, and Uttar Pradesh each have one district in this category.
Productivity also varies greatly across districts. GVA per worker in 280 districts exceeds the national average of ₹1.56 lakh, indicating relatively higher economic productivity. Conversely, in 331 districts, GVA per worker is estimated between ₹1.0 and ₹1.5 lakh. The survey also sheds light on the gender dynamics in the unincorporated economy.
In 237 districts, women constitute at least one-third of the workforce, while in 25 districts, they make up more than half of the total workers. Telangana, Manipur, and Meghalaya show the highest shares of female-led unincorporated establishments, with Mizoram standing out as it has women-owned proprietary establishments in every district.
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