Two in five informal firms now use the internet, MoSPI survey shows

An employee sorts medicines in a medicine wholesale shop in Guwahati, Assam (AP/File Photo)

Internet usage among India’s informal enterprises has risen sharply, with two in five firms now using online tools for business operations during the July–September 2025 quarter. This marks a steady improvement from the previous two quarters, when 36 percent of firms reported using the internet between April and June, and just 34 percent between January and March, according to Quarterly Bulletin of Unincorporated Sector Enterprises (QBUSE) released on November 25.

The latest survey suggests that digital adoption is accelerating even among small businesses, traditionally seen as lagging in technology use. The bulletin notes that more firms are leveraging online platforms for transactions, record-keeping, supply procurement and customer outreach, reflecting a gradual shift towards formalisation and improved productivity.

The uptick in digital usage comes amid a marginal expansion in the size of the informal economy. The number of unincorporated non-agricultural establishments rose to 79.7 million in the September quarter from 79.4 million in the preceding three months, while employment edged up to 128.6 million workers.

The manufacturing segment, which had softened earlier, showed signs of recovery with a 5.3 percent rise in the number of establishments and a stronger 7.2 percent increase in employment. Many of these units depend on casual and migrant labour that tends to return after the kharif season, lifting workforce numbers.

Women continued to form a sizable part of informal sector employment, accounting for 28.7 percent of the workforce in the latest quarter.

The rise in internet use aligns with broader formalisation trends, including more enterprises reporting some form of registration.