India’s informal sector is becoming less indebted, with the interest they paid as well as the amount of loans they need to repay falling sharply, according to the Ministry of Statistics and Programme Implementation’s (MoSPI) full report on its Annual Survey of Unincorporated Sector Enterprises (ASUSE) conducted in 2025. An analysis of the MoSPI report data released earlier this week showed annual interest payable per unincorporated establishment — or an informal business unit — reduced by 16% on average compared to the previous annual survey, conducted between October 2023 and September 2024. Similarly, outstanding loans per establishment fell 20% in the 2025 survey period compared to 2023-24 (October-September) to Rs 42,776, indicating new loans were outstripped by repayments. The reduction in outstanding loans coincided with a fall in investments, with each establishment’s net addition to fixed assets declining 14% in the 2025 survey from 2023-24.…