Sex work and prostitution are not included as industries in the Indian National Industrial Classification (NIC) which is used for gathering statistical and economic data. Hence, surrogate measures must perforce be used in estimating the size and scale of the ‘industry.’
Sex Work Turnover
Supply-side model
This model attempts to establish industry revenue from the perspective of the recipient, in other words, the sex worker’s perspective, with the two major segments being that of the female sex worker (FSW) and the male sex worker (MSW), also identified in reports and studies as "Men Who Have Sex With Men" (MSM).
Female Sex Workers
A programmatic mapping and population size estimation (PMPSE), a sustainable and systematic method designed to map congregation/solicitation locations (hotspots) of key populations as well as estimate of their size at each hotspot was carried out in India in 2020-22 under the National AIDS and STD Control Program (NACP) with the objective of estimating HIV prevalence among key populations (KPs), one of them being sex workers. Results were published in the National Library of Medicine and put the number of female sex workers (FSWs) across the country at 995,499.
According to the ‘Tracking Impact of Covid-19 on Sex Workers in India’ study carried out by Global Call to Action Against Poverty (GCAAP), “the current average income of the whole sample was found to be ₹7323 per month…” Based on the reporting language in the published study, it appears that the study covered only FSWs.
The annual turnover generated by FSWs can be calculated by multiplying the population with annual average income:
995,499 × ₹7,323 × 12 = ₹87,480,470,124 ≈ ₹8,748 crore
At the current exchange rate of USD 1 = INR 92, this translates to an annual turnover of just under USD 1 billion for FSWs.
Male Sex Workers (MSWs)
‘Transactional sex and the challenges to safer sexual behaviors: a study among male sex workers in Chennai, India,’ published by PubMed based on a study done in Chennai, reported ₹8,000 as the median income from sex work in a month, not very different from FSWs.
Using 351,020 as the number of MSWs, or Men Who Have Sex With Men (MSM), as reported in the study published in the National Library of Medicine quoted earlier, the annual turnover can be calculated by multiplying the population with annual average income:
351,020 × ₹8,000 × 12 = ₹33,792,960,000 or ₹3,379 crore
At the current exchange rate of USD 1 = INR 92, this translates to an annual turnover of just under USD 367 million for MSWs, or MSMs.
Demand-based model
This model looks at the total spending by the client (consumer side) on the sex work purchased, and not the income received by sex workers (worker side).
The inferences drawn here are based on the Disparities in the Cost of Living Adjusted Earnings of Female Sex Workers in India, Thailand, and the USA: A Need to Create an Equitable Economic Survival of Female Sex Workers study published by PubMed Central.
The above study found that an Indian FSW entertained 8 clients on an average per day with the average price being ₹300 per encounter. Assuming the number of working days in a year as 300 and drawing the total number of FSWs, 995499, from the National Library of Medicine study quoted earlier, the total spending by clients would work out to:
Average price per encounter x Number of client visits per day x Client days per year x No. of FSWs
Or, 300 x 8 x 300 x 995499 = ₹71,676 crore = $7.79 billion
Reconciling the variance
The supply-side estimate (under $1 billion) and the demand-side estimate ($7.79 billion), for FSWs, differ widely. The demand-side number is significantly higher. A reason highlighted by some is that there could be several payouts counted by the client that do not accrue to the sex worker. These cost-heads could be rentals, food and drinks, pimps, drugs, transportation, etc.
Related industries
Sex work includes a number of ‘products and services’ such as pornography creation and consumption, sex toys and Bluetooth enabled sex toys, sex technology such as virtual reality (VR) porn, real estate that drives its income form sex work, and even sexual wellness and healing.
Different studies have covered these related sectors in different ways, and there are bound to be overlaps as well as omissions.
Sextech and toys
In its ‘India Sextech Market Size & Outlook, 2023-2030’ report, Grand View Research estimated the 2023 revenue at USD 1,370.4 million ($1.3 billion) which they project growing at a CAGR of 20.3% to $5 billion by 2030.
According to the report, “In terms of revenue, India accounted for 3.7% of the global sextech market in 2023” and “is the fastest growing regional market in Asia Pacific.”
They found that “bluetooth enabled sex toys was the largest revenue generating product in 2023” while “VR Porn is the most lucrative product segment registering the fastest growth during the forecast period.”
Sexual Wellness
In their ‘India Sexual Wellness Market Research Report and Industry Forecast’ the IMARC Group defines sexual wellness as “a personal care practice involving a state of physical, mental, and social well-being that is connected to one’s sexual desires and needs” with the purpose of a sexual wellness product being to “warrant safe sex while enhancing pleasure during sexual interactions.”
Sexual wellness products “include contraceptives, exotic lingerie and apparel, sex toys, lubricants, delay sprays, condoms, pregnancy testing products, menstrual cups, and dental dams.”
The study forecasts the sector growing to $2.7 billion in 2034 from the estimated size of $1.5 billion in 2025, at a CAGR of 5.95%.
Caution and Conclusion
As stated at the start, sex work and prostitution are not classified as industries in India and hence there is no official collection and aggregation of economic, transactional, or statistical data related to the industry. Most analyses rely on surrogate measures depending upon the purpose of the analysis.
Many facets of sex and related work, criminal proceeds, trafficking, child prostitution, ancillary illicit goods such as drugs, which are all important, may not lend themselves to quantification even through surrogate measures.
Hence, adequate care must be exercised while reaching conclusions based on any data pertaining to sex work and prostitution.