This chapter examines the dynamics of self-employment in India following the economic reforms of the 1990s, utilizing data from the National Sample Survey and Periodic Labour Force Surveys spanning 2011–12 to 2022–23. Despite India's notable economic growth, the analysis reveals that self-employment, which accounts for over 57% of total employment as of 2022–23, is predominantly driven by necessity rather than opportunity. The majority of self-employed individuals are concentrated in agriculture, with a significant increase during the COVID-19 pandemic, indicating a reversal in structural transformation. Furthermore, the study finds that self-employment essentially comprises own-account workers and unpaid helpers, with only a small fraction being employers, highlighting its subsistence nature. Gender and caste-based disparities are evident, with women and marginalized communities disproportionately engaged in low-productivity self-employment. Regional variations show higher self-employment rates in less developed states. The findings suggest that current policies promoting entrepreneurship may be misaligned, failing to address the distress-driven aspects of self-employment. The study advocates for tailored policy interventions that foster opportunity-driven entrepreneurship and create formal employment opportunities to effectively leverage India's demographic dividend.