Fresh data from the latest Annual Survey of Unincorporated Sector Enterprises (ASUSE) has highlighted the precarious income conditions prevailing across India’s vast informal economy, with workers in non-agricultural unincorporated enterprises earning significantly less than statutory wage benchmarks.

An analysis published by Business Standard points to persistent low earnings and structural imbalances despite an expansion in the number of enterprises over recent years.

In India’s unincorporated non-agricultural sector, average daily earnings are even below the minimum-wage benchmark for unskilled non-agricultural work in smaller towns and non-metro areas, reported Business Standard, upon analysing data from latest Annual Survey of Unincorporated Sector Enterprises (ASUSE).

This gap further widens when it is compared with wage categories for semi-skilled and skilled workers, with the data also revealing the continued dominance of own-account enterprises.

The Business Standard report added that average daily earning was Rs 391 in manufacturing, Rs 401 in trade and Rs 420 in other services, with all these figures being below the minimum-wage benchmark of Rs 477 per day for unskilled non-agricultural work. Semi-skilled and skilled minimum-wage categories were higher.

While the number of establishments increased from 59.7 million in 2022 to 79.2 million in 2025, the own-account enterprises, which are businesses run without regularly hired workers, accounted for 86% of all establishments, reported Business Standard.

These businesses are usually run by self-employed individuals or family members.

The findings underline how a large proportion of India’s workforce remains concentrated in low-productivity, low-income activities, raising concerns among economists about wage stagnation, informalisation of employment and widening income disparities despite overall economic growth.