India’s Small Businesses in Numbers: 2026 Statistics From the Latest Government Survey

India has one of the largest small business economies in the world, but reliable numbers are hard to find. Most of what circulates online is either years old or about registered MSMEs, which leaves out the millions of shops, workshops and service providers that never register a company. This article pulls together the latest official figures from the Ministry of Statistics and Programme Implementation (MoSPI), whose Annual Survey of Unincorporated Sector Enterprises (ASUSE) is the most detailed regular survey of these businesses.

ASUSE 2025 covered January to December 2025 and surveyed 6,70,289 establishments across India. It counts unincorporated, non-farm businesses in manufacturing, trade and services: proprietorships, partnerships, cooperatives and similar firms. It doesn’t cover registered companies, construction or agriculture. Where this article uses more detailed figures by activity, they come from the ASUSE 2023-24 full report (October 2023 to September 2024), and are labeled with that year.

Key statistics at a glance

• 7.92 crore establishments in 2025, up 7.97% from 7.34 crore in 2023-24.
• 12.81 crore workers, up 6.18%, an addition of more than 74.52 lakh jobs.
• ₹19,92,577 crore of value added (gross value added by market establishments), up 10.87%.
• ₹2,52,699 of value added per establishment a year, and ₹1,56,539 per worker.
• ₹1,46,550 a year average pay per hired worker, up 3.88%.
• 26.93% of proprietary businesses are owned by women, and women make up about 29% of the workforce.
• 39.37% of establishments used the internet for their business, up from 26.68%.
• 37.50% were registered under at least one act or authority.
• Average fixed assets of ₹3,42,242 per establishment.

How many small businesses does India have?

ASUSE 2025 estimates 7,92,46,500 unincorporated non-agricultural establishments. Slightly more are in rural areas (4.24 crore) than in urban areas (3.68 crore), but urban establishments grew faster, by 9.45% against 6.71% in rural areas.

By broad activity:

Services are the largest and fastest-growing group, adding the most new establishments and around 35 lakh new jobs. Trade had the strongest growth in value added, at 16.77%, followed by manufacturing at 8.52% and services at 7.36%. Measured by value added, services contribute about 42% of the sector’s total, trade 37% and manufacturing 21%.

Which activities are most common?

Three activities account for about half of all establishments, according to MoSPI’s May 2026 press note on the detailed 2025 report:

• Other retail trade: 26.49% of establishments and 27.55% of workers. This includes kirana stores, general stores and most small shops.
• Manufacture of wearing apparel: 11.68% of establishments and 8.67% of workers, largely tailoring and garment work, much of it home-based.
• Other community, social and personal services: 11.60% of establishments and 9.51% of workers, covering salons, beauty parlours, repair shops, laundries and similar services.

The 2023-24 full report gives the size of other common activities:

How much does a typical small business generate?

ASUSE measures gross value added (GVA): what a business produces minus what it spends on materials, stock and other inputs, before paying its workers and owner. It’s the best available guide to the income a business generates.

In 2025, the average establishment added ₹2,52,699 of value a year. The gap between urban and rural businesses is large: ₹3,49,317 per establishment in urban areas against ₹1,68,730 in rural areas. By sector, trade led at ₹3,01,093 per establishment, then services at ₹2,56,343 and manufacturing at ₹1,92,405.

These averages hide a wide spread. Most establishments are run by one person, often with family help, and earn much less than businesses that employ staff. The 2023-24 report shows the difference clearly:

Businesses that employ people tend to be larger and better established, so hiring alone doesn’t explain the gap. But the pattern is consistent across every activity. We look at it in detail in running solo or hiring staff.

Jobs and pay

The sector employed 12.81 crore workers in 2025. Only 13.36% of establishments employed hired workers on a fairly regular basis; the rest relied on owners and family members. Across all workers, working owners made up about 62%, hired workers 24% and unpaid family members and others 14% in the October to December 2025 quarter.

Average annual pay per hired worker was ₹1,46,550 in 2025, or roughly ₹12,200 a month. It was higher in urban areas (₹1,56,143) than rural areas (₹1,24,516), and higher in services (₹1,51,122) than trade (₹1,44,500) or manufacturing (₹1,40,809). These figures include employer contributions such as PF and ESI where they apply. Planning to hire? Advanton’s hiring cost calculator works out the full cost of an employee in India, including PF, ESI and gratuity.

Women in India’s small businesses

Women owned 26.93% of proprietary establishments in 2025, up from 26.17%, and made up about 29% of the workforce. The pattern varies sharply by sector: more than 60% of manufacturing establishments were headed by women, against about 15% in services and 13% in trade. Nearly 22% of all women workers in the sector were in the manufacture of wearing apparel. Among women-led businesses that employ people, about 72% employed at least one woman. We cover this in more depth in our guide for women entrepreneurs in India.

Digital adoption

Internet use for business purposes rose from 26.68% of establishments in 2023-24 to 39.37% in 2025. The rise was sharpest in rural areas (from 17.94% to 31.06%), while urban use reached 48.94%. More than half of trading establishments used the internet. In the final quarter of 2025 alone, the share reached 48% across all establishments. Getting online is now normal rather than exceptional, which raises the cost of being invisible. See how to get your small business found online in India.

Registration, assets and loans

Only 37.50% of establishments were registered under any act or authority in 2025, a slight rise from 37.20%. That leaves most small businesses outside schemes and credit that depend on registration, such as Udyam-linked benefits. Registering is free and quick; see our Udyam registration guide.

Average fixed assets per establishment rose from ₹3,24,075 to ₹3,42,242. More than 80% of outstanding loans came from institutional sources such as banks and government schemes rather than moneylenders, which points to better access to formal credit. See business loans and government schemes for MSMEs.

Where are small businesses located?

Uttar Pradesh has the most establishments, followed by West Bengal and Maharashtra, and these three states account for more than a third of the sector’s workforce. The top 50 districts account for nearly a third of all establishments. Value added per establishment varies widely by state. In 2023-24, small services businesses in Maharashtra added ₹3,92,603 on average, against ₹1,25,804 in West Bengal. We break this down state by state in where small businesses thrive in India.

How the survey works, and how to use these figures

MoSPI’s National Statistics Office runs ASUSE by visiting a large, representative sample of villages and urban blocks across India, listing every eligible establishment there, and interviewing a sample of them about their workers, sales, costs, assets and loans. In 2025 it surveyed more than six lakh establishments, and the results are weighted up to estimate the whole country. Because the sample is so large, national and state figures are reliable; figures for small activities or small states rest on fewer surveyed businesses and are less precise.

Use the numbers as benchmarks, not targets. If your business adds much less value than the average for your activity and area, look at your prices, costs and customer numbers. If it adds much more, you’re doing well, but check that your plans don’t assume growth the market can’t support.

What this means for small business owners

• Competition is local and crowded. With nearly two crore retail establishments, standing out locally matters more than ever. Listing your business free in the India Business Directory and on Google is the minimum.
• Scale changes earnings. Businesses that grow beyond the owner earn several times more. Plan when and how to take on help.
• Registration and digital tools are now normal. Formal businesses find credit, customers and partners more easily.
• Use the data to test ideas. Advanton’s business idea reality check uses these ASUSE benchmarks to compare your projected numbers with similar businesses, urban or rural, and by state.

Frequently asked questions

How many small businesses are there in India?
MoSPI’s ASUSE 2025 estimates 7.92 crore unincorporated non-agricultural establishments in 2025, employing 12.81 crore workers. This excludes registered companies, construction and agriculture.

How many MSMEs are registered on Udyam?
Udyam counts are published on the Ministry of MSME’s Udyam portal and change daily, so check the portal for the current figure. ASUSE measures all unincorporated businesses, registered or not, which is why its numbers are larger.

What is the average income of a small business in India?
ASUSE doesn’t measure profit, but its value added figure is the closest guide: ₹2,52,699 per establishment in 2025, or ₹3,49,317 in urban areas and ₹1,68,730 in rural areas, before paying workers and the owner.

What share of small businesses are owned by women?
26.93% of proprietary establishments in 2025, rising to over 60% in manufacturing.

When is the next survey?
MoSPI now publishes ASUSE annually, with quarterly bulletins. The 2025 factsheet was released on 24 March 2026, and quarterly results for 2026 have started to appear.

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Sources

1. MoSPI, ASUSE 2025 factsheet (January to December 2025)
2. MoSPI, Press note on the ASUSE 2025 detailed report (6 May 2026)
3. MoSPI, Annual Survey of Unincorporated Sector Enterprises 2023-24, full report

Last reviewed November 7, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.