New Delhi, May 19 -- For decades, India's unorganized sector has remained a mainstay of employment in the economy, even as its share of economic output has declined.

Large companies and factories have failed to generate jobs at the pace required to absorb a growing labour force. In that vacuum, the unorganized sector-small shops, workshops, grocery stores, tiny manufacturing units and street vendors-remains the fallback.

Yet compiling reliable data on these enterprises has long been a challenge. Many lack fixed addresses. Most rely on household members rather than hiring from the market. The latest Annual Survey of Unincorporated Sector Enterprises (ASUSE) reveals mounting stress beneath this vast ecosystem.

The government refers to th...