The Grim Reality Behind Rising Self-Employment

• India’s GDP growth hides low-quality jobs and economic distress
• Self-employment rises, especially among women
• Lack of opportunities forces people into self-employment

Misconceptions About Self-Employment

• Self-employment is misunderstood as entrepreneurship
• Former Union Minister Smriti Irani’s statement on women’s self-employment
• Reality: self-employment is often necessity-driven, not opportunistic

The State of Self-Employment in India

• 4% of workers are self-employed (PLFS 2023-24)
• Share of regular workers remains low (21.7%)
• Women’s self-employment higher in rural (73.5%) and urban (43.2%) areas

Characteristics of Self-Employment

• Most self-employed workers are own-account workers
• 4% are helpers in household enterprises without wages
• Employers constitute less than 10% of self-employed workers

Vulnerability of Rural Women

• Social constraints, lower education, and limited job access
• Self-employment as survival strategy, not business choice
• Limited earning potential and financial insecurity

Earnings Data

• Average earnings of self-employed workers significantly lower than regular workers
• Gross monthly income of self-employed people lower than pre-pandemic years

Policy Implications

• Government schemes (Startup India, Standup India, Mudra Yojana) ineffective
• Need for comprehensive employment policy
• Focus on MSMEs, labor-intensive industries, and wage employment

Analysis

• Self-employment in India is largely necessity-driven, not opportunistic.
• Women, especially in rural areas, are disproportionately affected.
• Earnings data reveal significant disparities between self-employed and regular workers.
• Government policies have been ineffective in generating well-paid jobs.
• Comprehensive employment policy and focus on MSMEs and labor-intensive industries are necessary.