India’s unemployment rate falls to 5.2% in the July-September quarter

India’s unemployment rate fell to 5.2 per cent in the July-September quarter from 5.4 per cent in the previous three months, driven by increased rural employment during the farming season and pick up in female participation, government data showed on Monday.

The unemployment rate among those 15 years and above eased in rural areas to 4.4 per cent in the July-September period from 4.8 per cent in the previous quarter, while urban unemployment ticked up to 6.9 per cent from 6.8 per cent, the Periodic Labour Force Survey (PLFS), released by the Ministry of Statistics, showed.

The survey covered 564,000 people across India and estimated 562 million employed persons during the quarter.

The overall labour force participation rate (LFPR) rose marginally to 55.1 per cent from 55.0 per cent per cent in the previous quarter.

The female participation rate increased to 33.7 per cent from 33.4 per cent, continuing an upward trend in women’s engagement in the workforce.

However, unemployment rate among women in urban areas rose to 9 per cent from 8.9 per cent and among men it was at 6.2 per cent from 6.1 per cent in the previous quarter, data showed.

The Worker Population Ratio (WPR) — the share of employed persons in the total population — also rose slightly to 52.2 per cent from 52.0 per cent, supported by higher female participation, especially in rural areas.

The share of self-employed workers in rural areas increased to 62.8 per cent from 60.7 per cent, reflecting seasonal farm activity, while regular wage and salaried employment in urban areas improved modestly to 49.8 per cent from 49.4 per cent.

The survey also showed that 57.7 per cent of the rural workforce was engaged in agriculture during the quarter, compared with 53.5 per cent earlier, while the share of urban workers in the tertiary sector rose to 62.0 per cent.

Meanwhile a large delegation of Indian exporters will start a four-day visit to Moscow on Tuesday, a senior trade body official said, part of New Delhi’s push to diversify export markets amid the impact of United States President Donald Trump’s sharp tariff increases. The visit comes ahead of an expected trip to India next month by Russian President Vladimir Putin.

The delegation will comprise more than 20 exporters from the engineering sector — a sector which accounts for nearly a fifth of all Indian merchandise exports — and the visit is part of a broader strategy to tap new markets, industry officials said.

Donald Trump has doubled tariffs on Indian imports into the United States to 50 per cent as punishment for India’s purchases of Russian oil, driving bilateral relations to their lowest point in decades, though the two countries are now trying to reach a trade deal.

“Russia has been an important business partner for India, and the engineering and tools sector presents significant potential for collaboration,” said SC Ralhan, president of the Federation of Indian Export Organisations (FIEO), which is leading the delegation.

“Our engineering exports to Russia are growing rapidly and are expected to reach $1.75 billion this year,” he said, adding that the visit aimed to deepen commercial ties and promote Indian manufacturing in the Russian market.

Exports of engineering goods to the United States, India’s largest market, declined 9.4 per cent year-on-year to $1.40 billion in September, industry estimates showed, while total exports to the US fell to $5.4 billion from $6.9 billion in August.

India’s exports to Russia rose 14.6 per cent year-on-year to $4.9 billion in the fiscal year 2024/25 ending in March, while imports, mainly of crude oil and other energy products, climbed 4.3 per cent to $63.8 billion, Commerce Ministry data showed.

Indian exporters have benefited from supply gaps in Russia after Western firms exited the market following the Ukraine invasion.

However, imports have recently slowed as refiners paused Russian oil purchases following the imposition of US sanctions on two major Russian crude oil exporters.

At the MITEX Tools Expo in Moscow from November 11-14, Indian firms will showcase engineering goods, highlighting the country’s manufacturing strength, FIEO said, while the Indian Embassy and the Commerce Ministry will facilitate meetings with Russian buyers to promote trade and joint ventures.

Reuters