So, in the last couple of posts, I talked about the difference between an Enterprise and an Establishment, and about the different types of enterprises in India. Like I explained before, it's important to understand basic concepts and how NAS (National Account Statistics) estimates are made, before we can interpret them and draw valid conclusions.
Beginning with this post, I am going to start talking about the sources of data used for creating NAS estimates. These include the Economic Census (EC), various National Sample Surveys (NSS), the ASI (Annual Survey of Industries) and others. My muse for this post is the Economic Census......because.....
...I “Cens us” moving forward in our endeavour to become NAS Ninjas
* source and license for this image provided at the end of the post.
What is the Economic Census?
The Economic Census (EC) is a census of the Indian economy in which all establishments in the country engaged in economic activities (excluding those engaged in crop production and plantation) are counted. Note: Census refers to the complete enumeration of a population; every unit is counted. The data collected in the Economic Census includes:
1. Number of establishments by Location, Major activity groups, Type and Source of Finance:
- Number of establishments in rural and urban areas
- Number of establishments engaged in agricultural activities and non-agriculture activities
- Number of establishments by major activity groups (e.g. farming of animals, agricultural services, fishing, manufacturing, construction, wholesale and retail trade, transport and storage etc.)
- Number of establishments with hired workers1 and without hired workers (called “Own Account Establishments”)2
- Number of establishment with and without premises
- Number of establishments using power for their operations and not using power
- Number of establishments financed by assistance from government, borrowing from FIs, borrowing from money lenders, assistance from NGOs & voluntary organizations, and those that are self-financed.
Note:
1 Establishment with hired workers:
- Directory Establishment: An establishment with hired workers employing 6 or more persons daily on a fairly regular basis is called a Directory Establishment.
- Non-Directory Establishment: An establishment with hired workers employing less than 6 persons daily on a fairly regular basis is called a Non Directory Establishment.
2 Own Account Establishment (OAE): An establishment without any hired worker on a fairly regular basis is termed as an “Own Account Establishment”. It is usually run by members of a household.
2. Distribution of workers3 in establishments by Location, Major activity groups and Type of establishment:
- Number of workers employed in establishments in rural and urban areas
- Number of workers working in agricultural establishments and non-agricultural establishments
- Number of workers working in establishments by major activity groups (e.g. farming of animals, agricultural services, fishing, manufacturing, construction, wholesale and retail trade, transport and storage etc.)
- Number of workers working in Own account Establishments (OAEs) and establishments with hired workers.
- Number of establishments and of number of workers working therein by size class of employment
3 data available on number of workers is also broken down by sex – male and female.
The data collected in the Census can be sliced and diced in various ways, for e.g. one can find the number of female workers employed in OAEs in the manufacturing sector in the state of Maharashtra.
Why is the Economic Census conducted?
The Indian economy can be broadly divided into 2 sectors – the agricultural sector and the non-agricultural sector. A reasonable database is available for the agricultural sector. However, for the non-agricultural sector, such a database did not exist. There was no basic “frame” available, which could be used for sampling and collection of data and ultimately the estimation of various economic parameters.
What is a 'Frame' or a 'Sampling Frame' you ask?
In statistics, a “Sampling Frame” is the source material from which a sample is drawn. It is a list of all those within a population that can be sampled (I’ve quoted Wikipedia here, since it had the clearest, simplest definition). The most straightforward type of frame would be when all the elements of the population are listed in the frame. This can be done when we have census data. However, often it is not possible to use a frame that lists every element of a population because it may be expensive/impractical to do so.
“The Economic Census is a small attempt of the CSO for preparing a frame of establishments, which could be used for various censuses as well as surveys for collection of detailed data particularly on non-agriculture sectors of the economy” (EC-2005).
Based on the frame established by the EC, various detailed follow-up sample surveys especially of unorganized segments of different sectors of the non-agricultural economy are carried out by the NSSO.
How many ECs so far?
Six ECs have been conducted so far - First Economic Census (EC-1977), Second EC (EC-1980), Third EC (EC-1990), Fourth EC (EC-1998), Fifth EC (EC-2005) and the most recent, the Sixth EC (EC-2013).
While the complete report for EC-2005 is available, only the provisional report for EC-2013 has been published so far. Hence, I will present only limited data from the most recent census here.
Key Statistics from EC-2013 (only provisional results published):
- Total number of establishments in the country = 5.85 crore
- Growth rate of establishments over EC-2005 = 42%; ~4.5% y-y growth from 2005 to 2013
- 60% of establishments in rural areas, 40% in urban areas
- Total number of persons employed in all establishments = 12.8 crore
- Growth rate in total employment over EC-2005 = 34%; ~3.8% y-y growth from 2005 to 2013
- Hired workers as a % of total persons employed = 46%; 64% of total persons employed working in own/family owned establishments
- Female workers as a % total persons employed = 26%; male workers = 74%
EC-2005 covered all establishments in the country except those engaged in crop production and plantation. EC-2013 excluded not only establishments engaged in crop production and plantation, but also those in public administration, defence and compulsory social security. In order to compute growth in number of establishments & persons employed between the two censuses, I’ve made some adjustments/estimations.
Key Statistics from EC-2005 (complete report available):
Much more data is available from the EC-2005 (vis-a-vis the EC-2013) because the complete census report is out. Below are some key statistics.
- Total number of establishments in the country = 4.18 crore; 61% in rural areas, 39% in urban areas.
- Of total establishments, 64% were OAEs and 36% were establishments with hired workers.
- Of total establishments, 15% were engaged in agricultural activities and 85% in non-agricultural activities.
- “Retail trade” (42% of total number of non-agricultural establishments), “manufacturing” (23%) and “other community, social and personal service activities” (7%) were the 3 most important activity groups in terms of number of establishments in the non-agricultural sector. Together, they comprised 72% of the total establishments in the non-agricultural sector.
- Total number of persons employed in all establishments = 10.1 crore; 52% employed in rural areas and 48% in urban areas.
- Of the total persons employed, 35% were working in OAEs and 65% in establishments with hired workers.
- Hired workers as a % of total persons employed = 54%; 46% of total persons employed working in own/family owned establishments.
- Female workers as a % total persons employed = 20%; male workers = 80%.
- Establishments are employing lesser people on an average today (the average number of people employed/establishment shrank from 2.4 in 2005 to 2.2 in 2013)
- More people are working in their own or their family-owned businesses today (hired workers as a % of total people employed dropped from 54% in 2005 to 46% in 2013)
- Female participation in the workforce has increased (from 20% in 2005 to 26% in 2013)
----------------------------------------------------------------------------------------------------
*Source: This image has been sourced from the Wikimedia Commons website. Link to image: https://commons.wikimedia.org/wiki/File:Hagakureitizoku.jpg
Link to the license: https://creativecommons.org/licenses/by-sa/3.0/deed.en.
Disclosure: I have not made any changes to this image.
----------------------------------------------------------------------------------------------------
No comments:
Post a Comment