|
Theme
of the week:
Economic Census –
2
Growth of Enterprises *
1. Introduction
Central
Statistical Organisation (CSO) has been conducting Economic Census covering
all agricultural and non-agricultural establishments (excepting those
engaged in crop production and plantation) since 1977. The latest one, the
5th in this series of censuses was conducted during 2005-06 by CSO in
collaboration with State/Uts Directorate of Economics and Statistics.
However, the first census conducted in 1977 covered only non-agricultural
establishments with hired workers. All the subsequent censuses were more
enlarged covering both own account enterprises and establishments with hired
workers in agricultural and non-agricultural sectors.
2. Limitations
NIC-1987
was used in the Third and Fourth Economic Censuses, whereas NIC-2004 was
used in Fifth Economic Census. Census 1980 does not cover
Assam
and Census 1990 does not cover
Jammu and Kashmir
. Hence in this note wherever available these two states were excluded from
the data of all censuses and presented along with the actual published data.
Moreover, EC 1980 All India Report published by CSO does not include the
data for Kerala, Bihar and Lakshadweep in addition to
Assam
where economic census were not conducted. However, the said data on Kerala,
Bihar and
Lakshadweep
were disseminated in their District-wise aggregates published in June 1986.
3.
All Enterprises
An
institutional unit in its capacity as a producer of goods and services is
known as an enterprise. An enterprise is an economic transactor with
autonomy in respect of financial and investment decision-making, as well as
authority and responsibility for allocating resources for production of
goods and services. It may be engaged in one or more economic activities at
one or more locations. An enterprise may be a sole legal unit.
Fifth economic
census conducted by central statistical organization (CSO) in 2005 reveals
that there are 41.83 million enterprises in the country engaged in different
economic activities
Table
1: Comparison of Growth Rate of Enterprises Over Economic Censuses
|
|
|
Total
Number of Enterprises
|
(excl:
Assam
and J & K)*
|
|
|
|
1980
|
1990
|
1998
|
2005
|
1980
|
1990
|
1998
|
2005
|
|
Number
of Enterprises in Million
|
|
|
|
|
|
|
Rural
|
11.14
|
14.72
|
17.71
|
25.54
|
11.02
|
14.37
|
17.19
|
24.67
|
|
Urban
|
7.22
|
10.28
|
12.64
|
16.29
|
7.15
|
10.14
|
12.35
|
15.85
|
|
Combined
|
18.36
|
25.00
|
30.35
|
41.83
|
18.17
|
24.51
|
29.54
|
40.52
|
|
Share
in per cent
|
|
|
|
|
|
|
|
|
Rural
|
60.7
|
58.9
|
58.4
|
61.1
|
60.6
|
58.6
|
58.2
|
60.9
|
|
Urban
|
39.3
|
41.1
|
41.6
|
38.9
|
39.4
|
41.4
|
41.8
|
39.1
|
|
Combined
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
|
Compounded
Annual Growth Rate (per cent)
|
|
|
|
|
|
|
1980-1990
|
1990-1998
|
1998-2005
|
1980-2005
|
1980-1990
|
1990-1998
|
1998-2005
|
1980-2005
|
|
Rural
|
(2.83)
|
(2.34)
|
(5.37)
|
(3.37)
|
(2.69)
|
(2.27)
|
(5.30)
|
(3.28)
|
|
Urban
|
(3.60)
|
(2.62)
|
(3.69)
|
(3.31)
|
(3.56)
|
(2.50)
|
(3.63)
|
(3.24)
|
|
Combined
|
(3.14)
|
(2.45)
|
(4.69)
|
(3.35)
|
(3.04)
|
(2.36)
|
(4.62)
|
(3.26)
|
|
*:
Economic censuses have not been conducted for
Assam
in 1980 and for J & K in 1990.
|
|
Source:
CSO (2008): Economic Census 2005 - All India Report and
earlier issues
|
other
than crop production and plantation. Out of which 25.54 million enterprises
forming about 61.1 per cent of the total enterprises were in rural areas and
38.9 per cent in urban areas. It can be seen from the Table 1 that the
number of enterprises grew from 18.41 million in 1980 to 41.83 million in
2005 i.e., between second economic census to fifth economic census. During
the period while in rural areas about 14 million enterprises has been added,
in urban areas about 9 million enterprises has been added. It can also be
seen from Table 1 that between 1998 and 2005 (4th EC to 5th EC) the addition
of enterprises in rural areas was faster at about 8 million enterprises. The
compounded annual growth rate between 1980 and 2005 worked about 3.4 per
cent with that in rural and urban areas showing same growth rate. Between
1990 and 1998 there was a decline in the growth rate of enterprises mainly
due to decline in growth in some large states viz., Andhra Pradesh, Haryana
and Madhya Pradesh coinciding with the economic recession experienced by the
country between 1996 and 1998. Thereafter in the next seven years when the
economy was buoyant mood (between 1998 and 2005) the growth was picked up
from 2.45 per cent to 4.69 per cent due to high growth rate reflecting
especially the higher growth rate in many northeastern states. The economic
census was not conducted in Assam during 1980 and Jammu and Kashmir in 1990
and to have a comparable data along the four census if one remove the data
pertaining to Assam and Jammu and Kashmir from all censuses and work out the
compounded annual growth rate, there is not much difference is visible
during the period 1980 and 2005 at about 3.3 per cent and it holds true for
both rural and urban areas.
4.
Agricultural
Enterprise
Agricultural
Enterprise
is defined as one engaged in livestock production, agricultural services,
hunting, trapping and game propagation, forestry and logging, fishing
(corresponding to groups 012,013,014,015,020 and 050 of NIC 2004).
Establishments engaged in activities pertaining to crop production and
plantation (group 011 of NIC 2004) is excluded from the coverage of economic
census.
Table
2 depicts the number of enterprises as per second to fifth economic
censuses.
Table
2: Growth Rate of Agricultural Enterprises
|
|
|
Number
of Agricultural Enterprises
|
(excl
:
Assam
and J & K)*
|
|
|
1980
|
1990
|
1998
|
2005
|
1980
|
1990
|
1998
|
2005
|
|
Number
of Enterprises in Million
|
|
Rural
|
1.28
|
2.10
|
3.20
|
5.71
|
1.28
|
2.08
|
3.18
|
5.67
|
|
Urban
|
0.17
|
0.24
|
0.27
|
0.37
|
0.17
|
0.23
|
0.27
|
0.37
|
|
Combined
|
1.46
|
2.33
|
3.47
|
6.08
|
1.45
|
2.31
|
3.45
|
6.04
|
|
Share
in per cent
|
|
Rural
|
87.8
|
89.7
|
92.2
|
93.9
|
88.3
|
90.0
|
92.2
|
93.9
|
|
Urban
|
12.2
|
10.3
|
7.8
|
6.1
|
11.7
|
10.0
|
7.8
|
6.1
|
|
Combined
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
|
Compounded
Annual Growth Rate (per cent)
|
|
|
1980-1990
|
1990-1998
|
1998-2005
|
1980-2005
|
1980-1990
|
1990-1998
|
1998-2005
|
1980-2005
|
|
Rural
|
(4.91)
|
(5.41)
|
(8.62)
|
(6.10)
|
(4.97)
|
(5.45)
|
(8.61)
|
(6.13)
|
|
Urban
|
(2.92)
|
(1.48)
|
(4.42)
|
(2.92)
|
(3.07)
|
(2.02)
|
(4.60)
|
(3.16)
|
|
Combined
|
(4.69)
|
(5.05)
|
(8.32)
|
(5.81)
|
(4.77)
|
(5.14)
|
(8.33)
|
(5.87)
|
|
*
: Economic censuses have not been conducted for
Assam
in 1980 and for J & K in 1990.
|
|
Source:
CSO(2008) : Economic Census 2005 - All India Report and
earlier issues
|
It
can be seen that in rural areas the addition was much faster during the
entire censuses period i.e. 1980 to 2005. The compounded annual growth rate
during the 25 years at 6.1 per cent per cent with number of rural
agricultural enterprises more than quadrupling has been much faster than
that in urban areas and in 2005 agricultural enterprises in rural areas
formed about 94 per cent at 5.71 million enterprises. In urban area the
number of agricultural enterprises gone up from 0.17 million in 1980 to 0.37
million in 2005, but its share in total agricultural enterprises came down
by half during the period.
The
initial plans did not take off the ground until the first coordinated
approach made by the Central Statistical Organization (CSO), GOI by
launching a plan scheme for ‘Economic Census and Surveys’ in 1976. The
scheme envisaged organizing countrywide census of all economic activities
(excluding those engaged in crop production and plantation) followed by
detailed sample surveys of unorganized segments of different sectors of
non-agricultural economy in a phased manner during the intervening period of
two successive censuses. The scheme envisaged conducting of economic
censuses periodically in order to update the frame from time to time to
capture rapid changes that occur in the unorganized sectors due to high
mobility and morbidity of small units and also on account of births of new
units.
5.
Non-Agricultural Enterprises
Enterprises
engaged in economic activities other than those carried out by agricultural
enterprises are termed as non-agricultural enterprises.
|
Table
3: Growth Rate of Non-Agricultural Enterprises
|
|
|
Number
of Non-Agricultural Enterprises
|
(excl:
Assam
and J & K)*
|
|
|
1980
|
1990
|
1998
|
2005
|
1980
|
1990
|
1998
|
2005
|
|
Number
of Enterprises in Million
|
|
Rural
|
9.86
|
12.63
|
14.51
|
19.83
|
9.74
|
12.29
|
14.01
|
19.00
|
|
Urban
|
7.05
|
10.04
|
12.37
|
15.92
|
6.98
|
9.90
|
12.08
|
15.48
|
|
Combined
|
16.9
|
22.67
|
26.88
|
35.75
|
16.72
|
22.19
|
26.09
|
34.48
|
|
Share
in per cent
|
|
Rural
|
58.4
|
55.7
|
54.0
|
55.5
|
58.3
|
55.4
|
53.7
|
55.1
|
|
Urban
|
41.6
|
44.3
|
46.0
|
44.5
|
41.7
|
44.6
|
46.3
|
44.9
|
|
Combined
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
100.0
|
|
Compounded
Annual Growth Rate (per cent)
|
|
|
1980-1990
|
1990-1998
|
1998-2005
|
1980-2005
|
1980-1990
|
1990-1998
|
1998-2005
|
1980-2005
|
|
Rural
|
(2.48)
|
(1.75)
|
(4.56)
|
(2.82)
|
(2.35)
|
(1.65)
|
(4.45)
|
(2.71)
|
|
Urban
|
(3.60)
|
(2.64)
|
(3.67)
|
(3.31)
|
(3.56)
|
(2.52)
|
(3.61)
|
(3.24)
|
|
Combined
|
(2.96)
|
(2.15)
|
(4.16)
|
(3.03)
|
(2.87)
|
(2.04)
|
(4.06)
|
(2.94)
|
|
*:
Economic censuses have not been conducted for
Assam
in 1980 and for J & K in 1990.
|
|
Source:
CSO(2008) : Economic Census 2005 - All India Report and
earlier issues
|
About
19 million non-agricultural enterprises have been added during the 25-year
period ending 2005. Out of which about 9 million non-agricultural
enterprises were added between 1998 and 2005. At this level number of
addition both in rural and urban areas were more or less same. However,
while with a CAGR of 2.8 per cent between 1980 and 2005 in rural areas were
slower than that in urban areas, the case was opposite between 1998 and 2005
when in rural areas the non-agricultural enterprises rose faster with an
annual average growth of 4.6 per cent as compared to 3.7 per cent in urban
areas, indicative of the fact that non-agricultural enterprises in rural
areas are fast catching up with urban areas in actual number even though the
share of rural non-agricultural enterprises were 55.5 per cent in over all
non-agricultural enterprises ( Table 3). The faster increase of the
non-agricultural enterprises between 1998 and 2005 may be due to the fact
that increased tax concession facilities and better infrastructure
facilities extended by government to open manufacturing enterprises in rural
areas.
6.
Own Account Enterprises (OAE)
An
enterprise without any hired worker on a fairly regular basis is termed as
an own account enterprise. Members
of the household normally run it.
|
Table
4: Comparison of Growth Rate of All Own Account Enterprises Over
Economic Censuses
|
|
|
|
Total
Number of Own Account Enterprises
|
(excl:
Assam
and J & K)*
|
|
|
|
1980
|
1990
|
1998
|
2005
|
1980
|
1990
|
1998
|
2005
|
|
Number
of Own Account Enterprises in Million
|
|
Rural
|
Total
|
8.65
|
11.32
|
13.60
|
18.11
|
8.56
|
11.10
|
13.26
|
17.51
|
|
|
Agriculture
|
1.09
|
1.84
|
2.89
|
4.85
|
1.09
|
1.83
|
2.87
|
4.81
|
|
|
Non-Agri
|
7.55
|
9.47
|
10.71
|
13.26
|
7.47
|
9.26
|
10.38
|
12.70
|
|
Urban
|
Total
|
4.73
|
6.37
|
7.78
|
8.83
|
4.69
|
6.29
|
7.59
|
8.59
|
|
|
Agriculture
|
0.14
|
0.19
|
0.21
|
0.28
|
0.13
|
0.19
|
0.21
|
0.28
|
|
|
Non-Agri
|
4.60
|
6.18
|
7.56
|
8.55
|
4.55
|
6.10
|
7.37
|
8.38
|
|
Combined
|
Total
|
13.38
|
17.69
|
21.38
|
26.94
|
13.25
|
17.39
|
20.85
|
26.10
|
|
|
Agriculture
|
1.23
|
2.03
|
3.10
|
5.13
|
1.23
|
2.02
|
3.08
|
5.09
|
|
|
Non-Agri
|
12.15
|
15.65
|
18.27
|
21.81
|
12.02
|
15.36
|
17.75
|
21.08
|
|
Compounded
Annual Growth Rate (per cent)
|
|
|
|
1980-1990
|
1990-1998
|
1998-2005
|
1980-2005
|
1980-1990
|
1990-1998
|
1998-2005
|
1980-2005
|
|
Rural
|
Total
|
(2.73)
|
(2.32)
|
(4.18)
|
(3.00)
|
(2.63)
|
(2.25)
|
(4.05)
|
(2.90)
|
|
|
Agriculture
|
(5.38)
|
(5.81)
|
(7.68)
|
(6.15)
|
(5.32)
|
(5.79)
|
(7.66)
|
(6.12)
|
|
|
Non-Agri
|
(2.29)
|
(1.55)
|
(3.10)
|
(2.28)
|
(2.17)
|
(1.44)
|
(2.92)
|
(2.15)
|
|
Urban
|
Total
|
(3.02)
|
(2.53)
|
(1.83)
|
(2.53)
|
(2.98)
|
(2.38)
|
(1.78)
|
(2.45)
|
|
|
Agriculture
|
(3.10)
|
(1.26)
|
(4.20)
|
(2.81)
|
(3.87)
|
(1.26)
|
(4.20)
|
(3.12)
|
|
|
Non-Agri
|
(3.00)
|
(2.55)
|
(1.77)
|
(2.51)
|
(2.98)
|
(2.39)
|
(1.85)
|
(2.47)
|
|
Combined
|
Total
|
(2.83)
|
(2.40)
|
(3.36)
|
(2.84)
|
(2.76)
|
(2.29)
|
(3.26)
|
(2.75)
|
|
|
Agriculture
|
(5.14)
|
(5.43)
|
(7.46)
|
(5.88)
|
(5.09)
|
(5.41)
|
(7.44)
|
(5.85)
|
|
|
Non-Agri
|
(2.56)
|
(1.95)
|
(2.56)
|
(2.37)
|
(2.48)
|
(1.82)
|
(2.49)
|
(2.27)
|
|
*:
Economic censuses have not been conducted for
Assam
in 1980 and for J & K in 1990.
|
|
Source:
CSO(2008) : Economic Census 2005 - All India Repot and
earlier issues
|
Addition
of about 13 million own account enterprises i.e. from 13.25 to 26.10 million
during the 25 year period was the combined result of opening about 4 million
agriculture enterprise and 9 non-agriculture enterprises by the households
who want to conduct there business with their own family members. About 70
per cent of the addition has been in rural areas with an addition of 4
million agricultural enterprises and 5 million non-agricultural enterprises.
Urban area with 3.8 million additions during the period formed about 30 per
cent of the total addition. In rural areas growth was faster at 4.2 per cent
between 1998 and 2005 with agriculture enterprise growing by 7.7 per cent
during 1998-2005. As against this the growth of own account enterprises in
urban areas is the lowest at
1.83 per cent between any censuses (Table 4).
The
trend was more or less same even with removal of
Assam
and
Jammu and Kashmir
along all the four censuses.
7.
Establishments
The
establishment is defined as an enterprise or part of an enterprise that is
situated in a single location in which one or predominantly one kind of
economic activity is carried out. It is an economic unit under a single
legal entity.
According
to economic census 1980 the number of establishments with hired workers was
about 5 million which grew 3-fold in the next 25 years to reach 15 million
establishments by 2005. The compounded annual average growth rate between
1980 and 1990 registered a growth of 3.9 per cent and thereafter growth rate
declined to 2.6 per cent by 1998 when fourth census were undertaken. Since
them consistent with over all economic growth in the next seven years,
number of establishments also accelerated by adding about 6 million
establishment during the period with the growth rate of 7.5 per cent between
1998 and 2005. The average annual growth rate during the twenty-five year
period works out to 4.5 per cent. Same trend was also seen both in rural and
urban areas (Table 5).
Number
of agricultural establishment rose from 0.23 million in 1980 to 0.95 million
in 2005 with a CAGR of 5.8 per cent. The growth rate was the fastest at 14.4
per cent between 1998 and 2005.
The
growth rate of establishment in rural areas during the 25-year period at
6.23 per cent was much faster than that in urban areas (Table 5). Between
1998 and 2005, the growth rate of agricultural establishment at 15.7 per
cent was the fastest among all type of establishments for the period.
|
Table
5: Growth Rate of Establishments with at least One Hired Worker
|
|
|
|
Total
Number of Establishments
|
(excl:
Assam
and J & K)*
|
|
|
|
1980
|
1990
|
1998
|
2005
|
1980
|
1990
|
1998
|
2005
|
|
Number
of Establishments with at least one hired worker in Million
|
|
Rural
|
Total
|
2.50
|
3.40
|
4.11
|
7.43
|
2.46
|
3.27
|
3.93
|
7.16
|
|
|
Agriculture
|
0.19
|
0.25
|
0.31
|
0.86
|
0.19
|
0.25
|
0.31
|
0.85
|
|
|
Non-Agri
|
2.31
|
3.15
|
3.79
|
6.57
|
2.26
|
3.02
|
3.62
|
6.31
|
|
Urban
|
Total
|
2.49
|
3.91
|
4.87
|
7.46
|
2.46
|
3.85
|
4.76
|
7.26
|
|
|
Agriculture
|
0.04
|
0.05
|
0.06
|
0.09
|
0.04
|
0.05
|
0.06
|
0.09
|
|
|
Non-Agri
|
2.45
|
3.87
|
4.81
|
7.37
|
2.42
|
3.80
|
4.70
|
7.18
|
|
Combined
|
Total
|
4.99
|
7.31
|
8.97
|
14.89
|
4.92
|
7.12
|
8.69
|
14.42
|
|
|
Agriculture
|
0.23
|
0.30
|
0.37
|
0.95
|
0.23
|
0.30
|
0.37
|
0.94
|
|
|
Non-Agri
|
4.75
|
7.02
|
8.60
|
13.94
|
4.69
|
6.82
|
8.33
|
13.49
|
|
Compounded
Annual Growth Rate (per cent)
|
|
|
|
1980-1990
|
1990-1998
|
1998-2005
|
1980-2005
|
1980-1990
|
1990-1998
|
1998-2005
|
1980-2005
|
|
Rural
|
Total
|
(3.12)
|
(2.40)
|
(8.83)
|
(4.45)
|
(2.89)
|
(2.32)
|
(8.95)
|
(4.37)
|
|
|
Agriculture
|
(2.78)
|
(2.73)
|
(15.69)
|
(6.23)
|
(2.78)
|
(2.73)
|
(15.50)
|
(6.18)
|
|
|
Non-Agri
|
(3.15)
|
(2.34)
|
(8.18)
|
(4.27)
|
(2.94)
|
(2.29)
|
(8.26)
|
(4.19)
|
|
Urban
|
Total
|
(4.62)
|
(2.78)
|
(6.28)
|
(4.49)
|
(4.58)
|
(2.69)
|
(6.22)
|
(4.42)
|
|
|
Agriculture
|
(2.26)
|
(2.31)
|
(5.96)
|
(3.30)
|
(2.26)
|
(2.31)
|
(5.96)
|
(3.30)
|
|
|
Non-Agri
|
(4.68)
|
(2.76)
|
(6.29)
|
(4.50)
|
(4.62)
|
(2.69)
|
(6.24)
|
(4.45)
|
|
Combined
|
Total
|
(3.89)
|
(2.59)
|
(7.51)
|
(4.47)
|
(3.77)
|
(2.52)
|
(7.50)
|
(4.40)
|
|
|
Agriculture
|
(2.69)
|
(2.66)
|
(14.42)
|
(5.84)
|
(2.69)
|
(2.66)
|
(14.25)
|
(5.79)
|
|
|
Non-Agri
|
(3.98)
|
(2.57)
|
(7.14)
|
(4.40)
|
(3.82)
|
(2.53)
|
(7.13)
|
(4.32)
|
|
*:
Economic censuses have not been conducted for
Assam
in 1980 and for J & K in 1990.
|
|
Source:
CSO (2008): Economic Census 2005 - All India Report and
earlier issues
|
Establishment
engaged in economic activities other than those carried out by agricultural
establishment are termed as non-agricultural establishment whose number rose
from 4.8 million establishments in 1980 to 13.9 million by 2005, an addition
of 9.1 million establishment during the 25-year period.
a.
Directory Establishment (DE)
An
establishment with hired worker, employing six or more persons daily on a
fairly regular basis is termed as directory establishment. The addition of
directory establishment between 1998 and 2005 at 0.2 million establishment
was very minimal.
b.
Non-Directory Establishment (NDE)
An
establishment with hired worker, employing less than 6 persons daily on a
fairly regular basis is termed as Non Directory Establishment whose number
augmented by 5.6 million during 1998 and 2005. Out of the total
non-directory establishment agricultural enterprises formed about 10 per
cent and non-agricultural enterprises formed other 90 per cent. with both
rural and urban area sharing the growth almost equally ( Table 6).
|
Table
6: Growth Rate of
Directory and Non-Directory Establishment
|
|
(
' 000)
|
|
|
|
1998
|
2005
|
CAGR (1998-2005)
|
|
|
|
NDE
|
DE
|
Total
|
NDE
|
DE
|
Total
|
NDE
|
DE
|
Total
|
|
Agriculture
|
Rural
|
273
|
41
|
314
|
802
|
59
|
861
|
(16.62)
|
(5.26)
|
(15.48)
|
|
|
Urban
|
48
|
10
|
57
|
77
|
10
|
87
|
(7.07)
|
(-0.09)
|
(6.07)
|
|
|
Combined
|
321
|
51
|
372
|
880
|
68
|
948
|
(15.47)
|
(4.37)
|
(14.30)
|
|
Non-Agri
|
Rural
|
3188
|
605
|
3792
|
5800
|
765
|
6565
|
(8.93)
|
(3.41)
|
(8.15)
|
|
|
Urban
|
3805
|
1004
|
4809
|
6265
|
1109
|
7374
|
(7.38)
|
(1.43)
|
(6.30)
|
|
|
Combined
|
6993
|
1609
|
8601
|
12066
|
1874
|
13939
|
(8.10)
|
(2.20)
|
(7.14)
|
|
Combined
|
Rural
|
3461
|
646
|
4107
|
6603
|
823
|
7426
|
(9.67)
|
(3.53)
|
(8.83)
|
|
|
Urban
|
|