In a strategic move to enhance workforce transparency and policy planning, the Government of India has directed state-level Labour Welfare Boards to begin tracking employment data generated by sole proprietors across various sectors. The initiative, led by the Ministry of Labour and Employment, aims to integrate the informal employment contributions of sole traders into official labor statistics, thereby acknowledging their role in job creation and ensuring that their workers are brought under the purview of welfare schemes and legal protections.

Traditionally, employment data collection focused on organized businesses such as registered companies and large firms, leaving a significant gap in understanding the workforce involved in micro-enterprises and single-owner establishments. Under the new framework, sole proprietors—particularly those registered under Udyam or enrolled in welfare schemes—will be encouraged to voluntarily submit basic information about the number and type of workers they employ. This includes regular, part-time, and seasonal workers across industries such as retail, food services, tailoring, transport, and local trades. The data will be collected through simplified digital formats integrated with existing labour portals and state board systems.

Officials believe this move will help the government design more targeted labor welfare programs, including health insurance, pension schemes, skill training, and workplace safety regulations that are tailored to the micro-enterprise sector. It will also allow for better outreach of initiatives like the Pradhan Mantri Shram Yogi Maandhan Yojana and e-Shram platform. Labour Welfare Boards will conduct awareness campaigns to educate sole proprietors about the importance and benefits of workforce reporting. Experts see this as a critical step toward formalizing the employment landscape in India and recognizing the substantial, yet often invisible, employment generated by sole business owners.