First-Ever Study on Unincorporated Construction Sector

Ministry of Statistics and Programme Implementation (MoSPI) released technical report of a pilot study on Construction Activities in the Unincorporated Sector and Households- the first such comprehensive effort by National Statistics Office (NSO) in decades to estimate key economic indicators of the unincorporated construction sector.

About the Study

  • Conducted alongside Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025
  • Survey period: July to December 2025
  • Data collected from 19,154 households, 4,470 market establishments and 717 non-market establishments
  • Findings served as a key input for National Accounts Division (NAD) in updating new series of national accounts statistics

Key Findings

Scale of Activity:

  • 54 lakh households undertook own-account construction for their own use during the reference period
  • 27 lakh unincorporated construction agencies (establishments) were engaged in the sector
  • Approximately 77% of these establishments engaged at least one hired worker on a regular basis

Employment:

  • Average workers per unincorporated construction establishment- around 5
  • Average labourers per household undertaking own-account construction- around 4

Financial Indicators:

  • Average fixed assets per establishment: Rs 5.21 lakh
  • Average outstanding loan per establishment: Rs 1.40 lakh
  • GVA per market establishment: Rs 7.98 lakh
  • Output per establishment : Rs 16.25 lakh

Household Financing:

  • On an average, about 97% of households used own income as a funding source (contributing 77% of total construction expenditure)
  • Nearly 21% of households availed institutional loans, higher in rural areas (23%) vs urban (13%)
  • Around 75% of household construction expenditure was on materials; labour accounted for approximately 22%
  • Bricks, cement, iron and steel together comprised approximately 60% of total material expenditure

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