India's informal nonfarm sector shrinks as jobs fall 9.7%
Business
India's informal (unincorporated, nonfarm) sector slowed down sharply between April and June 2026.
According to new government data, the number of businesses dropped by 5.4% and jobs fell by 9.7% compared to the previous quarter, a big shift after a strong start to the year.
Rural India businesses down nearly 10%
The slowdown hit rural India hardest: businesses there shrank by nearly 10% and jobs fell by 13.4%.
Trade and manufacturing were especially affected across the country.
Urban areas stayed steady in business numbers but still lost jobs.
On the bright side, establishments in other services managed to grow slightly this quarter and saw over 21% growth compared to last year, showing that not all parts of the informal economy are struggling right now.