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Only 6% of India's self-employed actually hire other workers

India's official data shows 60% of workers are "self-employed" - but this statistic hides a crucial reality. Only 6% of these individuals actually employ others. For most, self-employment isn't entrepreneurship but a last resort when better jobs aren't available.

Only 6% of India's self-employed actually hire other workers. The remaining 94% either work solo or help family members without pay—often in marginal operations just to survive.

The income gap tells the real story: self-employed workers earn about ₹13,200 monthly compared to ₹20,700 for salaried employees. That's ₹7,000 less every month or 50% higher earnings for those with regular jobs.

Regional patterns further reveal that self-employment isn't driven by entrepreneurial spirit. It's highest in India's least industrialized states like Uttar Pradesh (75% self-employed) and lower in industrialized states like Tamil Nadu (33%).

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