Factors that contribute to the growth status of informal enterprises in India are explored using data on the unincorporated non-agricultural enterprises from the National Sample Survey Office. A multinomial logit regression is undertaken to determine the growth status of these enterprises. Results show that the firms which have been either declining or have operated for less than three years are the ones located mainly in the urban sector. Rural firms are expanding in comparison to those in urban areas, implying a decline in the urban informal manufacturing sector.
