Employment growth in household and small enterprises in Indian manufacturing in 2000s is analysed in
the context of inclusive growth. Analysis is based on the results of establishment surveys of unorganized
manufacturing and registered manufacturing for the years 2000-01, 2005-06 and 2010-11.The
employment share of household enterprises was found to have declined across industries and across
states of India with the exception of Gujarat and Delhi. Employment growth in small enterprises defined
as those with less than 50 workers in the non-household segment was observed to be positive but
insufficient to compensate for the decline of household employment. The employment share of small
enterprises was not found to have improved during the years 2001 to 2011 in the States with higher per
capita NSDP. This calls for policy initiatives that encourage new entry and growth of employment in
existing small enterprises