Informal manufacturing and services gained during FY23, trade share declined: Govt data
Informal manufacturing and service sectors grew faster than the informal trade sector in 2022-23, data released by the government on Friday showed.
The gross value added of unincorporated manufacturing companies increased by 19.14% to ₹3.6 lakh crore in 2022-23 (October-September) compared with ₹2.77 lakh crore in 2021-22 (April-March), data released by the Ministry of Statistics and Programme Implementation showed. The increase in gross value added of the services sector was 18.9% during the same period. Trade and services still account for a larger share of value added to the economy than the manufacturing sector.
Less jobs, lower pay
However, the increase in business did not translate into more jobs in the informal manufacturing sector, as the number of workers increased by only 6.3% compared with 13.4% increase for the informal services sector. Unemployment was one of the issues raised by the opposition in the recently concluded general elections. A comparison across geographies shows that urban informal enterprises did much better than rural ones, with urban enterprises adding 10.4% more to business and 9.1% more jobs in 2022-23 compared with the previous year. The value-added of rural informal enterprises went up 8.9% and jobs increased 6.5% during this period. The total jobs added by informal sector firms rose during this period, but did not translate into gains for workers as the amount spent per employee declined.
Emolument per worker declined 1.1% in 2022-23 compared with 2021-22, as per analysis of
