Datanomics: Slack in informal manufacturing in pre-tariff quarter

First-ever quarterly estimates of unincorporated enterprises show job and enterprise losses in manufacturing, raising concerns over India's growth outlook

The government has, for the first time, released the quarterly estimates of unorganised sector enterprises, breaking from the past tradition of releasing them annually. The numbers for the first quarter of financial year 2026 (Q1FY26) were not encouraging -- especially for the labour-intensive manufacturing sector. While it does not reflect the effect of US’ 50 per cent tariffs which came into effect much later in August, it paints a worrying picture. It could be an early sign of stress in the informal sector where the bulk of enterprises and workers are concentrated. While most of them are not involved in