ASUSE 2025: District-Level Analysis of India's Informal Economy

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Key takeaways

The National Statistics Office (NSO) released the ASUSE 2025 report, providing district-level economic metrics across 757 districts in India's unincorporated non-agricultural sector.
High geographical concentration defines this sector, as the top 50 districts alone generate nearly 33% of all enterprise establishments, total workforce, and Gross Value Added (GVA).
Economic productivity varies widely across districts, with 280 districts exceeding the national average GVA per worker of ₹1,56,539, while 331 districts record GVA between ₹1,00,000 and ₹1,50,000.
Women-led micro-enterprises show strong presence in certain regions, with 237 districts having over 33.3% female workers and Mizoram recording over 50% female-owned units in every district.
Targeted policy actions must bring informal enterprises onto the Udyam Assist Platform (UAP) and expand credit delivery through PM MUDRA Yojana in low-productivity districts.

The National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) published India's first district-level dataset for non-agricultural unincorporated businesses.
Based on the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025, this detailed statistical survey covers 757 districts to guide local economic policy decisions.

The unincorporated non-agricultural sector consists of small informal business units operating outside corporate registration in three main fields: Manufacturing, Trade, and Other Services.
Business ownership styles include sole proprietorships, traditional partnerships excluding LLPs, cooperative societies, and registered trusts.
Because these small businesses employ most of India's non-farm labor, tracking metrics like Gross Value Added (GVA) and worker earnings at the district level helps reveal regional economic gaps.

Economic activity is heavily concentrated, with the top 10 districts across states like Gujarat, Telangana, Uttar Pradesh, and West Bengal contributing nearly 10% of all businesses, jobs, and GVA.
The top 50 districts located across 12 states together account for nearly 33% of all informal establishments, total workers, and overall sector value.
Around one-third of all districts in India host more than 1,00,000 informal non-agricultural business units each.
About 9% of districts maintain a small economic presence with fewer than 10,000 informal business units.
Only 16 mega-districts host over 5,00,000 units each, including 8 in West Bengal, 3 in Maharashtra, 2 in Gujarat, and 1 each in Karnataka, Telangana, and Uttar Pradesh.
Labor productivity varies across the country, as 280 districts performed above the national average GVA of ₹1,56,539 per worker.
In 331 districts, worker productivity stays moderate, generating between ₹1,00,000 and ₹1,50,000 GVA per worker.
Women play a major role in the workforce, representing at least 33.3% of informal sector workers in 237 districts.
In 25 districts, female workers make up more than 50% of the entire informal business workforce.
In Mizoram, women own at least 50% of all informal proprietary business units across every single district.
Districts across Telangana, Manipur, Meghalaya, and Mizoram lead the entire nation in both female business ownership and female labor participation.

In West Bengal, North 24 Parganas leads the state by generating 15.99% of all state units.
In Telangana, Rangareddy stands out by producing 23.53% of total state establishments.
In Gujarat, Surat ranks first by driving 19.43% of the state's informal enterprises.
In Punjab, Ludhiana holds the top spot with a 14.74% share of all state business units.
In Karnataka, Bengaluru (Urban) commands the leading position with 12.83% of the state total.
In Kerala, Thiruvananthapuram dominates the state network with a 12.38% contribution.
In Rajasthan, Jaipur takes the leading share by accounting for 11.70% of state units.
In Maharashtra, Pune contributes the largest portion with 9.14% of state establishments.
In Bihar, Patna leads local economic activity with 8.23% of the state total.
In Tamil Nadu, Chennai accounts for the highest share at 7.13% of state establishments.
In Uttar Pradesh, Prayagraj leads the state workforce base with 5.77% of total units.

The survey used a multi-stage random sampling design, selecting census villages in rural areas and Urban Frame Survey (UFS) blocks in urban centers.
Data collection covered 757 out of 770 targeted districts, using tablet-based Computer Assisted Personal Interviewing (CAPI) with monthly oral recall.
In Delhi, urban and rural samples were combined into one group due to low rural counts, preventing separate district reports.
For Chandigarh and Lakshadweep, because each has only one district, district figures equal their overall union territory figures.
The survey authorities note that smaller districts have higher sampling variation and Relative Standard Error (RSE), requiring careful interpretation.

District administrators can use this local data to identify specific industrial areas and support weak economic pockets directly.
Banks and financial institutions can direct micro-credit programs like PM MUDRA Yojana and PM SVANidhi to districts where worker earnings fall below ₹1 lakh.
State governments can register small informal units on the Udyam Assist Platform (UAP) to give them access to bank loans and government social security.
Targeted schemes like Stand-Up India and PM Vishwakarma can expand into districts with low female business ownership using successful models from the Northeast.

Because just 50 districts produce one-third of all informal economic output, governments must expand infrastructure and credit access into smaller towns.
Combining easy bank loans, local skill training, and official business registration will help boost worker productivity across rural and semi-urban India.