The use of digital technology, especially the Unified Payments Interface (UPI), has significantly increased among businesses in India. A recent survey by the statistics office highlights this trend, showing a substantial rise in the use of UPI for transactions and online orders.
Key Findings:
Rise in Digital Adoption: According to the survey, internet usage for business purposes, including UPI payments and online orders, has increased notably. In rural areas, it rose from 7.7% to 13.5%, while in urban areas, it jumped from 21.6% to 30.2% during 2022-23. This reflects an overall increase of 7.2 percentage points, demonstrating the rapid adoption of digital payment methods in the informal sector.
Women in the Workforce: The survey by the Ministry of Statistics and Programme Implementation (MoSPI) also revealed that women constituted 25.6% of the total workforce in 2022-23. Notably, women made up 31% of the workforce in units without regularly hired workers. Additionally, 54% of proprietary establishments in the manufacturing sector were led by women, highlighting their significant role in the informal sector.
Impact and Recovery from COVID-19: The informal sector was hit hard by the second wave of the COVID-19 pandemic, leading to a decline in the number of units and workers. However, recovery began in the July quarter of 2021. The number of establishments in the unincorporated sector rose from nearly 6 crore in 2021-22 to 6.5 crore in 2022-23, marking an increase of about 5.9%.
Sector-wise Insights: In 2022-23, the "other services" sector held the largest share at 37.9%, followed by trade at 34.7% and manufacturing at 27.4%. Retail trade dominated, accounting for over 40% of establishments in this sector, with around 30% in retail and approximately 11% in apparel manufacturing.
State-wise Distribution: Uttar Pradesh reported the highest number of establishments, both rural and urban, followed by West Bengal and Maharashtra for both 2021-22 and 2022-23.
Financial Growth: Fixed assets owned by unincorporated non-agricultural establishments increased from Rs 2,81,013 in 2021-22 to Rs 3,18,144 in 2022-23, indicating improved capital investment. Outstanding loans per establishment also rose from Rs 37,408 in 2021-22 to Rs 50,138 in 2022-23, reflecting better access to financing.
These insights come from the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2021-22 and 2022-23, with a detailed report released by the Ministry of Statistics and Programme Implementation on June 14.
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