What is driving India's self-employment growth?

According to the HDFC Bank report, India's self-employment sector has seen a "healthy CAGR of 7.0%" from FY18 to FY24, making it the fastest-growing job market in the country. This surge has been driven by a rise in women's labor force participation, which reached 31.7% as of FY24.

How has the employment landscape in India shifted?

The report notes that as of FY24, the non-farm sector now accounts for 54% of total employment in India, while agriculture continues to add jobs, primarily through female workers. Non-farm job creation has been led by the services, construction, and manufacturing sectors.

What is the impact of India's self-employment growth on the overall job market?

The report states that with the self-employed now accounting for well over half of India's total employed population, this expanding segment has become central to the country's employment landscape, outpacing the growth of salaried work and casual labor.

Home / Business and Economy / Self-Employment Surges as India's Fastest-Growing Job Sector

Self-Employment Surges as India's Fastest-Growing Job Sector

17 Nov

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Summary

Self-employment grew at a "healthy CAGR of 7.0%" from FY18 to FY24
Women's labor force participation increased to 31.7% as of FY24
Services, construction, and manufacturing led non-farm job creation

Self-Employment Surges as India's Fastest-Growing Job Sector

As of November 17, 2025, a recent report by HDFC Bank has revealed that self-employment has become the strongest engine of job growth in India over the past six years. The study shows that self-employment, encompassing both farm and non-farm activities, surged from 239 million in FY18 to 358 million in FY24, marking a "healthy CAGR of 7.0 per cent".

This rapid expansion in self-employment has outpaced the growth of salaried work and casual labor. Salaried or regular wage jobs increased only marginally, from 105 million in FY18 to 119 million in FY24, growing at a more subdued "CAGR: 4.1 per cent", while casual labor stagnated, inching up from 114 million to 122 million at a "CAGR: 1.1 per cent" during the same period.

Notably, the report highlighted that the Labor Force Participation Rate (LFPR) for the working-age population (15-59 years) increased from 53 per cent in FY18 to 64.3 per cent in FY24, with women's participation rising to 31.7 per cent as of FY24. This suggests that more women and youth have been entering the labor force, many of whom may be turning toward self-employment due to limited availability of wage-based jobs.