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Current Economic Statistics and Review For the Week
Ended October 03, 2008 (40^thWeekly Report of 2008)

Theme of the week:

Economic Census- 5

Ownership of Enterprises and Employment therein *

1.Introduction

The Central statistical Organisation (CSO) conducts periodic Economic Censuses, which reveal an array of information such as the number of enterprises, special characteristics of enterprises, ownership pattern of enterprises, enterprises run by social groups of persons and employment therein. These Censuses were conducted to have census frames for different periods to conduct follow-up sample surveys. In spite of their strengths and deficiencies as already explained in our earlier notes, which in the main discussed the trends in number of enterprises along different Censuses, their special characteristics and persons employed by them, this note discusses the distribution of enterprises among private, public and cooperative ownership as well as the distribution of number of enterprises owned by different social classes.

2.Type of Ownership

Position Until the 1990 Census

The enterprises enumerated by different Censuses were grouped under three broad types of ownership till the 1990 Census, viz., private, co-operative and public.

An enterprise was treated as private, if it was managed by single or private persons with no participation of the government in it either in terms of management or shares. Loans granted by the government to the enterprise do not make the enterprise a government enterprise. Private shops, limited companies, temples, churches, mosques, activities of a private contractor, manufacturer, and trader – all belong to the private sector. Schools, libraries, etc., which are not set-up by government, municipality, panchayat, or local bodies are private.

Enterprises registered under the laws for registration of co-operative societies fall under the category of ‘co-operative’.

All other enterprises, owned by central and state governments, local bodies or by universities and education boards, which are autonomous and getting grants from the central or state government or local bodies as well as those belonging to joint sector (enterprises run with shares of both government and private body) are treated as public enterprises.

The Census of 1998

However, for the fourth Census conducted in 1998, ownership categories were changed into four broad types: a) Private Non-profit Institutions (NPIs); b) Private Others; c) Co-operative; and d) Government.

Institutions which are financed and controlled by households(for example a dharmashala, a trust or a temple etc.), has been treated as NPIs serving households, while institutions, which have been financed and controlled by commercial organizations e.g. FICCI, ASSOCHEM has been treated as NPIs serving commercial organizations/business houses. Both types of such institutions fall under the category of “Private NPIs”.

The definition of private enterprise in the 1998 Census has been the same as earlier. All private enterprises other than those mentioned in the category of ‘Private NPIs’ are categorized as ‘Private Others’ – a simple nomenclature for a large body of privately owned enterprises.

All enterprises, which are registered under Act of Co-operative Societies, fall under the category of ‘Co-operative’.

All other enterprises which have ownership such as central government, state governments, public sector undertakings, local bodies (Zilla parishad, municipal corporations, other municipal authorities, etc.) have been considered as ‘Government’ enterprises. Universities, educational boards which are autonomous but are getting grants from the central and state governments or local bodies have also been included in the category of ‘Government’.

The Census of 2005

In the latest Economic Census of 2005 ownership has broadly been divided into: Private NPIs, Private Unincorporated Proprietary and Unincorporated Partnerships, Private Others and Government/ PSUs.

3.Social Group Ownership

Three categories of social group ownership are: scheduled tribe, scheduled caste and others. The social group of owner of all enterprises other than private enterprises is taken as others. In the case of private enterprises run by two or more persons’if even one of the partners belongs to the scheduled tribe category, the ownership is treated as that of scheduled tribe. In case, none of the partners belongs to a scheduled tribe and even one partner belongs to a scheduled caste, the owner is taken as ‘scheduled caste’. If none of the partners belongs to either a scheduled tribe or a scheduled caste, the social group of owner was considered as others.

4. Trend in Number of Enterprises by Type of Ownership

The distribution of number of enterprises by their type of ownership and by location is given in Table 1.

All Enterprises

The enterprise structure has moved in favour of private enterprises over the past two decades and a half.

Table 1: Ownership of Enterprise – All Enterprises						( ‘ 000 numbers)
	Numers in ‘ 000 Numbers				Share in Percent			CAGR in Percent
	EC No	Rural	Urban	All	Rural	Urban	All		Rural	Urban	All
Total	1980	11141	7220	18362	100.00	100.00	100.00	1980-90	(2.83)	(3.60)	(3.13)
	1990	14722	10280	25002	100.00	100.00	100.00	1990-98	(2.34)	(2.62)	(2.45)
	1998	17708	12641	30349	100.00	100.00	100.00	1998-05	(5.37)	(3.69)	(4.69)
	2005	25536	16291	41827	100.00	100.00	100.00	1980-05	(3.37)	(3.31)	(3.35)
Private	1980	9888	6771	16659	88.75	93.78	90.73	1980-90	(2.99)	(3.72)	(3.29)
	1990	13280	9757	23037	90.21	94.91	92.14	1990-98	(2.58)	(2.89)	(2.71)
	1998	16276	12254	28529	91.91	96.94	94.00	1998-05	(5.45)	(3.65)	(4.70)
	2005	23597	15745	39342	92.41	96.65	94.06	1980-05	(3.54)	(3.43)	(3.50)
Cooperative	1980	129	62	191	1.16	0.86	1.04	1980-90	(2.55)	(4.47)	(3.21)
	1990	166	96	262	1.13	0.93	1.05	1990-98	(-0.93)	(-6.94)	(-2.84)
	1998	154	54	208	0.87	0.43	0.69	1998-05	(2.01)	(7.74)	(3.69)
	2005	177	91	268	0.69	0.56	0.64	1980-05	(1.27)	(1.55)	(1.36)
Public	1980	1124	387	1511	10.09	5.36	8.23	1980-90	(1.28)	(1.01)	(1.21)
	1990	1276	428	1704	8.67	4.16	6.82	1990-98	(0.02)	(-3.05)	(-0.69)
	1998	1278	334	1612	7.22	2.64	5.31	1998-05	(4.69)	(4.52)	(4.66)
	2005	1762	455	2217	6.90	2.79	5.30	1980-05	(1.81)	(0.65)	(1.55)
Note: Data for category private for the year 1998 includes Pvt.NPI and Pvt.others and that for 2005 includes Pvt.NPI, Pvt corporate and Pvt.others
Source: Economic Census 2005 and Previous Issues

The number of private ownership enterprises rose from 16.7 million forming 90.7 per cent of total enterprise in 1980 to 39.3 million with a share of 94.1 per cent in 2005 with an compounded average annual growth rate of 3.5 per cent during the 25-year period. The number of enterprises under co-operative ownership increased from 191,000 in 1980 to 268,000 in 2005, with an average growth rate 1.4 per cent. However, the share of public ownership enterprises declined to 5.3 per cent in 2005 from 8.2 per cent in 1980.

Agricultural Enterprises

As expected , that bulk of (99.6 per cent) of agricultural establishments was owned by private ownership in 2005 as against 98.1 per cent in 1980 (Table 2). The share of public enterprises in agriculture declined to 0.4 per cent in 2005 from a high of 1.5 per cent in 1980.

Table 2: Ownership of Agriculture Enterprise
	Numers in ‘ 000 Numbers				Share in Percent			CAGR in Percent
	EC No	Rural	Urban	All	Rural	Urban	All		Rural	Urban	All
Total	1980	1284	174	1458	100	100	100	1980-90	(5.0)	(3.1)	(4.8)
	1990	2097	235	2332	100	100	100	1990-98	(5.4)	(1.9)	(5.1)
	1998	3201	274	3475	100	100	100	1998-05	(8.6)	(4.4)	(8.3)
	2005	5709	371	6080	100	100	100	1980-05	(6.1)	(3.1)	(5.9)
Private	1980	1260	171	1430	98.1	98.3	98.1	1980-90	(5.1)	(3.1)	(4.9)
	1990	2074	232	2307	98.9	98.7	98.9	1990-98	(5.5)	(2.0)	(5.2)
	1998	3179	272	3452	99.3	99.3	99.3	1998-05	(8.7)	(4.5)	(8.4)
	2005	5684	369	6053	99.6	99.5	99.6	1980-05	(6.2)	(3.1)	(5.9)
Cooperative	1980	5	1	6	0.4	0.6	0.4	1980-90	(0.0)	(0.0)	(0.0)
	1990	5	1	6	0.2	0.4	0.3	1990-98	(6.1)	(0.0)	(5.2)
	1998	8	1	9	0.2	0.4	0.3	1998-05
	2005	na	na	na	na	na	na	1980-05
Public	1980	20	2	22	1.6	1.1	1.5	1980-90	(-1.6)	(0.0)	(-0.9)
	1990	17	2	20	0.8	0.9	0.9	1990-98	(-2.4)	(-8.3)	(-3.5)
	1998	14	1	15	0.4	0.4	0.4	1998-05	(8.6)	(10.4)	(8.8)
	2005	25	2	27	0.4	0.5	0.4	1980-05	(0.90)	(0.00)	(0.8)
Note: Data for category private for the year 1998 includes Pvt.NPI and Pvt.others and that for 2005 includes Pvt.NPI, Pvt corporate and Pvt.others
Source: Economic Census 2005 and Previous Issues

Non-Agricultural Enterprises

The distribution of non-agricultural enterprises by type of ownership with rural-urban break-up has been presented in Table 3.

The number of private ownership enterprises has more than doubled to 33.6 million in 2005 from 15.3 million in 1980 with an average annual growth rate of 3.2 per cent during the 25-year period. The share of private enterprise rose from 90 per cent to 94 per cent. The number of public ownership enterprises has risen from 1.5 million in 1980 to 2.2 million in 2005 with an average annual growth rate of 1.6 per cent during the 25-year period. In 2005, public enterprises formed about 6.1 percent of total enterprises a decline from 8.8 per cent in 1980.

Table 3: Ownership of Non-Agriculture Enterprise
	Numers in ‘ 000 Numbers				Share in Percent			CAGR in Percent
	EC No	Rural	Urban	All	Rural	Urban	All		Rural	Urban	All
Total	1980	9857	7046	16904	100	100	100	1980-90	(2.5)	(3.6)	(3.0)
	1990	12625	10045	22670	100	100	100	1990-98	(1.8)	(2.6)	(2.1)
	1998	14507	12367	26874	100	100	100	1998-05	(4.6)	(3.7)	(4.2)
	2005	19827	15920	35747	100	100	100	1980-05	(2.8)	(3.3)	(3.0)
Private	1980	8629	6600	15229	87.5	93.7	90.1	1980-90	(2.6)	(3.7)	(3.1)
	1990	11206	9525	20730	88.8	94.8	91.4	1990-98	(2.0)	(2.9)	(2.4)
	1998	13097	11981	25078	90.3	96.9	93.3	1998-05	(4.7)	(3.7)	(4.2)
	2005	18090	15467	33557	91.2	97.2	93.9	1980-05	(3.0)	(3.5)	(3.2)
Cooperative	1980	124	62	186	1.3	0.9	1.1	1980-90	(2.6)	(4.4)	(3.2)
	1990	161	95	256	1.3	0.9	1.1	1990-98	(-1.2)	(-7.0)	(-3.1)
	1998	146	53	199	1.0	0.4	0.7	1998-05
	2005	na	na	na	na	na	na	1980-05
Public	1980	1105	385	1489	11.2	5.5	8.8	1980-90	(1.3)	(1.0)	(1.2)
	1990	1259	425	1684	10.0	4.2	7.4	1990-98	(0.0)	(-3.0)	(-0.7)
	1998	1264	333	1597	8.7	2.7	5.9	1998-05	(4.6)	(4.5)	(4.6)
	2005	1737	453	2190	8.8	2.8	6.1	1980-05	(1.8)	(0.7)	(1.6)
Note: Data for category private for the year 1998 includes Pvt.NPI and Pvt.others and that for 2005 includes Pvt.NPI, Pvt corporate and Pvt.others
Source: Economic Census 2005 and Previous Issues

Ownership as per Economic Census – 2005

Table 4 shows the ownership pattern as per the new definition of different types of ownership. It can be observed from there that out of 41.83 million enterprises in the country as of 2005, 1.44 million enterprises (3.4 per cent) were managed by private non-profit institutions (Pvt NPIs). Private corporates owned about 0.31 million enterprises forming about 0.76 per cent of the total, while about 0.27 million (0.64 per cent) fall under cooperative ownership. ‘Pvt. Others’ have accounted for 37.59 million enterprises forming about 89.9 per cent of total enterprises. Enterprises owned by ‘Pvt. Others’ were distributed in rural and urban area in the ratio of 59.6 per cent and 40.4 per cent, respectively.

Table 4: Number of Enterprises By Type of Ownership –EC 2005
	Rural			Urban			Rural+Urban
	OAE	Estt	All	OAE	Estt	All	OAE	Estt	All
Number of All Enterprises (in 000)
Total	18110	7426	25536	8830	7461	16291	26940	14887	41827
Pvt.NPI	612	411	1023	207	207	414	819	618	1437
Pvt.Corporate	115	70	185	51	81	132	166	151	317
Pvt.Others	17300	5090	22390	8539	6659	15198	25839	11749	37588
Cooperative	84	93	177	32	59	91	116	152	268
Govt/PSU	0	1762	1762	0	455	455	0	2217	2217
Number of Agricultural Enterprises ( in ‘ 000)
Total	0	0	5709	0	0	371	0	0	6080
Pvt.NPI	0	0	97	0	0	7	0	0	104
Pvt.Uni.Prop & Uni.Part.	0	0	5529	0	0	358	0	0	5887
Pvt.Others	0	0	58	0	0	3	0	0	61
Govt/PSU	0	0	25	0	0	2	0	0	27
Number of Non-Agricultural Enterprises ( in ‘ 000)
Total	0	6565	0	0	7374	0	0	13939	0
Pvt.NPI	0	390	0	0	205	0	0	595	0
Pvt.Uni.Prop & Uni.Part.	0	4292	0	0	6578	0	0	10870	0
Pvt.Others	0	147	0	0	138	0	0	285	0
Govt/PSU	0	1737	0	0	453	0	0	2190	0
Share of All Enterprises
Pvt.NPI	3.4	5.5	4.0	2.3	2.8	2.5	3.0	4.2	3.4
Pvt.Corporate	0.6	0.9	0.7	0.6	1.1	0.8	0.6	1.0	0.8
Pvt.Others	95.5	68.5	87.7	96.7	89.3	93.3	95.9	78.9	89.9
Cooperate	0.5	1.3	0.7	0.4	0.8	0.6	0.4	1.0	0.6
Govt/PSU	0.0	23.7	6.9	0.0	6.1	2.8	0.0	14.9	5.3
Share Among Agricultural Enterprises
Pvt.NPI	0	0	1.7	0	0	1.9	0	0	1.7
Pvt.Uni.Prop & Uni.Part.	0	0	96.8	0	0	96.5	0	0	96.8
Pvt.Others	0	0	1.0	0	0	0.8	0	0	1.0
Govt/PSU	0	0	0.4	0	0	0.5	0	0	0.4
Share Among Non-Agricultural Establishments
Pvt.NPI	0	5.9	0	0	2.8	0	0	4.3	0
Pvt.Uni.Prop & Uni.Part.	0	65.4	0	0	89.2	0	0	78.0	0
Pvt.Others	0	2.2	0	0	1.9	0	0	2.0	0
Govt/PSU	0	26.5	0	0	6.1	0	0	15.7	0
Pvt NPI : Private non-profit institutions, Pvt.Uni.Prop & Uni.Part : Private unincorporated proprietorship and unincorporated partnership 0 ‘ Zero means not relevant or not available
Source: CSO (2008), Economic Census 2005, All-India Report and Previous Issues

Private unincorporated proprietorships and unincorporated partnerships have been managing about 5.9 million or 96.8 per cent of the total agricultural enterprises in 2005. Pvt. NPIs owned about 1.7 per cent of the total agricultural enterprises. The share of government sector has been the least at 0.4 per cent in agricultural enterprises. Similar pattern has also been seen in rural and urban areas.

It has been observed that 10.87 million non-agricultural establishments with at least one hired worker, constituting about 78 per cent of the total establishments, were owned by ‘private unincorporated proprietorships and unincorporated partnerships’.

Government-owned non-agricultural establishments constitute another 15.71 per cent of the total, while Pvt. NPIs and ‘Pvt. Others’ owned 6.0 million and 2.2 million enterprises, respectively.

5. Employment by Type of Ownership of Enterprises

Employment in All Enterprise by Ownership

Employment in privately owned enterprises (agricultural and non-agricultural) has risen over two-fold to 86.0 million in 2005 from35.5 million in 1980 with a compound annual growth rate (CAGR) of 3.6 per cent. In 2005, such private employment formed about 85 per cent of the total employment as against 73 per cent in 1980.

Table 5: Employment By Type Ownership of Enterprise – All Enterprises
		Numbers in ‘ 000			Rate of Employment			CAGR in Percent
	EC No	Rural	Urban	All	Rural	Urban	All		Rural	Urban	All
Total	1980	21330	27094	48424	1.9	3.8	2.6	1980-90	(4.55)	(3.65)	(4.06)
	1990	33296	38780	72076	2.3	3.8	2.9	1990-98	(2.29)	(1.42)	(1.83)
	1998	39901	43399	83299	2.3	3.4	2.7	1998-05	(3.88)	(1.70)	(2.78)
	2005	52069	48834	100904	2.0	3.0	2.4	1980-05	(3.63)	(2.38)	(2.98)
Private	1980	16824	18633	35456	1.7	2.8	2.1	1980-90	(4.71)	(4.04)	(4.36)
	1990	26646	27694	54340	2.0	2.8	2.4	1990-98	(2.92)	(2.61)	(2.75)
	1998	33551	34043	67504	2.1	2.8	2.4	1998-05	(4.31)	(2.66)	(3.52)
	2005	45078	40906	85983	1.9	2.6	2.2	1980-05	(4.02)	(3.20)	(3.61)
Cooperative	1980	545	584	1129	4.2	9.4	5.9	1980-90	(6.11)	(8.18)	(7.23)
	1990	986	1282	2269	5.9	13.4	8.7	1990-98	(-4.11)	(-8.66)	(-6.49)
	1998	705	621	1326	4.6	11.5	6.4	1998-05
	2005							1980-05
Public	1980	3962	7878	11840	3.5	20.4	7.8	1980-90	(3.64)	(2.21)	(2.71)
	1990	5663	9803	15467	4.4	22.9	9.1	1990-98	(-0.04)	(-1.43)	(-0.91)
	1998	5646	8734	14380	4.4	26.1	8.9	1998-05	(3.10)	(-1.37)	(0.53)
	2005	6991	7930	14920	4.0	17.4	6.7	1980-05	(2.30)	(0.03)	(0.93)
Note: Cooperative employment data for the year 2005 separately not available and is included in private
Source: Economic Census 2005 and Previous Issues

However, there had been not much improvement in the average employment per enterprise between 1980 and 2005 (though 2005 data includes cooperatives also); actually there was a dip in the rate of employment from 2.4 to 2.2 between 1998 and 2005 ( Table 5).

Employment in the public enterprise roaster has been increased from 11.8 million in 1980 to 14.9 million in 2005 with a CAGR of 0.93 per cent during the 25-year period ending 2005. However, the rate of employment has witnessed a steady decline to 6.7 in 2005 after registering a steep increase from 7.8 in 1980 to 9.1 in 1990. Still urban public owned enterprises has more than 15 persons in their roaster even in 2005, it was above 20 persons during the earlier censuses periods.

Employment in Agricultural Enterprises by Type of Ownership

Employment in privately owned agricultural enterprises has gone up from 2.6 million in 1980 to 10.8 million in 2005, more than four fold increase during the 25-year period. The CAGR works out to be at a faster rate at 5.9 per cent during the period, with the growth rate being the fastest at 7.2 per cent between 1998 and 2005 (Table 6). Here also the rate of employment, which was 1.8 in 1980, has risen to 2.0 in 1990, thereafter witnessed a steady decline and in 2005 it was 1.8.

Table 6: Employment in Agriculture Enterprise By Type of Ownership
		Numbers in ‘ 000			Rate of Employment			CAGR in Percent
	EC No	Rural	Urban	All	Rural	Urban	All		Rural	Urban	All
Total	1980	2338	368	2706	1.8	2.1	1.9	1980-90	(6.1)	(3.7)	(5.8)
	1990	4233	531	4764	2.0	2.3	2.0	1990-98	(4.7)	(1.9)	(4.5)
	1998	6133	616	6749	1.9	2.2	1.9	1998-05	(7.5)	(2.6)	(7.1)
	2005	10175	738	10914	1.8	2.0	1.8	1980-05	(6.1)	(2.8)	(5.7)
Private	1980	2270	339	2609	1.8	2.0	1.8	1980-90	(6.2)	(3.8)	(5.9)
	1990	4150	494	4645	2.0	2.1	2.0	1990-98	(4.9)	(2.4)	(4.6)
	1998	6064	598	6662	1.9	2.2	1.9	1998-05	(7.6)	(2.7)	(7.2)
	2005	10102	719	10820	1.8	1.9	1.8	1980-05	(6.2)	(3.1)	(5.9)
Cooperative	1980	16	3	19	3.2	3.0	3.2	1980-90	(4.1)	(17.5)	(7.5)
	1990	24	15	39	4.8	15.0	6.5	1990-98	(0.0)	(-15.2)	(-4.1)
	1998	24	4	28	3.0	4.0	3.1	1998-05
	2005	0	0	0				1980-05
Public	1980	53	26	79	2.7	13.0	3.6	1980-90	(1.1)	(-1.7)	(0.3)
	1990	59	22	81	3.5	11.0	4.1	1990-98	(-3.3)	(-5.5)	(-3.9)
	1998	45	14	59	3.2	14.0	3.9	1998-05	(7.4)	(5.2)	(6.7)
	2005	74	20	93	3.0	10.0	3.4	1980-05	(1.3)	(-1.0)	(0.7)
Note and source see Table 5

Public agricultural enterprises employed 14,000 more persons between 1980 and 2005 to reach an overall employment of 93,000 in 2005. The CAGR has been 0.7 per cent during the period. After witnessing a decline in the growth in urban employment between 1980-90 and 1990-98 during 1998-2005 there was actually an increase in the growth rate of 5.2 per cent , still there was a decline in the rate of employment to 10 from 14 between 1998 and 2005.

Employment in Non-Agricultural Enterprises by Type of Ownership

Privately owned non-agricultural enterprises engaged 75.2 million persons in 2005 as against 32.8 million persons in 1980. At this level the CAGR works out to be 3.4 per cent during the period. However the rate of employment during the 25-year period had been more or less stable at 2.2 ( Table 7).

Table 7: Employment in Non-Agriculture Enterprise By Type of Ownership
		Numbers in ‘ 000			Rate of Employment			CAGR in Percent
	EC No	Rural	Urban	All	Rural	Urban	All		Rural	Urban	All
Total	1980	18992	26727	45719	1.9	3.8	2.7	1980-90	(4.3)	(3.6)	(3.9)
	1990	29063	38249	67311	2.3	3.8	3.0	1990-98	(1.9)	(1.4)	(1.6)
	1998	33768	42783	76551	2.3	3.5	2.8	1998-05	(3.1)	(1.7)	(2.3)
	2005	41894	48096	89990	2.1	3.0	2.5	1980-05	(3.2)	(2.4)	(2.7)
Private	1980	14554	18294	32848	1.7	2.8	2.2	1980-90	(4.5)	(4.0)	(4.2)
	1990	22496	27200	49696	2.0	2.9	2.4	1990-98	(2.5)	(2.6)	(2.6)
	1998	27487	33445	60933	2.1	2.8	2.4	1998-05	(3.5)	(2.7)	(3.0)
	2005	34976	40187	75163	1.9	2.6	2.2	1980-05	(3.6)	(3.2)	(3.4)
Cooperative	1980	530	581	1111	4.3	9.4	6.0	1980-90	(6.1)	(8.1)	(7.2)
	1990	962	1267	2229	6.0	13.3	8.7	1990-98	(-4.2)	(-8.6)	(-6.5)
	1998	680	617	1297	6.1	13.7	8.3	1998-05
	2005							1980-05
Public	1980	3909	7852	11761	3.5	20.4	7.9	1980-90	(3.7)	(2.2)	(2.7)
	1990	5605	9781	15386	4.5	23.0	9.1	1990-98	(-0.0)	(-1.4)	(-0.9)
	1998	5600	8721	14321	4.4	26.2	9.0	1998-05	(3.1)	(-1.4)	(0.5)
	2005	6917	7910	14827	4.0	17.5	6.8	1980-05	(2.3)	(0.0)	(0.9)
Note and source see Table 5

Employment in publicly owned enterprises has increased from 11.8 million in 1980 to 14.8 million in 2005 with CAGR of 0.9 per cent during the 25-year period. The rate of employment after witnessing a n increase to 9.0 to 1990 and 1998 from 7.9 in 1980, thereafter declined to 6.8.

6.Enterprises by Social Group Ownerships

All Enterprises

Distribution of enterprises by social group ownerships reveals that the Scheduled Caste ownership enterprises rose from 14.8 million enterprises in 1980 to 36.9 million enterprises in 2005 – an addition of 22,1 million enterprises owned by SC in 25-year period (Table 8).

However, the change in the share of SC owner ship enterprises rose to 8.8 per cent in 2005 from 8.1 per cent in 1980.Number of SC ownership Own Account Enterprises 13.7 million in 1980 increased to 28.4 million in 2005. The share of SC ownership OAE enterprises marginally rose from 10.2 per cent to 10.6 per cent. Establishment with hired workers owned by SC gone up to 8.5 million in 2005 from 1.1 million in 1980 – an addition of 7.4 million in 25-year period and out of this about 5 million SC owned establishment were added between 1998 and 2005. An addition of 10.6 million ST owned enterprises were taken place between 1980 and 2005.

Table 8: Social Group Ownership of Enterprise ( in ‘ 000 numbers)
	1980			1990			1998			2005
	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All
All Enterprises (Agrl+Non-Agrl)
Own Account Enterprises
Total No	86457	47335	133792	113173	63654	176829	136007	77750	213757	181102	88299	269400
SC	10289	3423	13712	15252	5045	20296	14388	5576	19964	20793	7632	28424
ST	3477	725	4202	5479	875	6354	8273	2072	10347	9489	2142	11631
OBC	0	0	0	0	0	0	53928	25063	78990	80350	33433	113782
Establishments With Hired Workers
Total No	24957	24867	49824	34049	39144	73193	41067	48664	89731	74259	74611	148870
SC	615	506	1120	1202	986	2188	1598	1765	3363	4749	3730	8479
ST	264	167	431	507	267	774	865	852	1717	2246	1333	3578
OBC	0	0	0	0	0	0	9838	11771	21611	23240	22267	45507
All Enterprises
Total No	111414	72202	183616	147222	102798	250022	177074	126414	303488	255361	162910	418270
SC	10904	3929	14832	16454	6031	22484	15986	7341	23327	25542	11362	36903
ST	3741	892	4633	5986	1142	7128	9138	2924	12064	11735	3475	15209
OBC	0	0	0	0	0	0	63766	36834	100601	103590	55700	159289
Share :Own Account Enterprises
Total No	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
SC	11.9	7.2	10.2	13.5	7.9	11.5	10.6	7.2	9.3	11.5	8.6	10.6
ST	4.0	1.5	3.1	4.8	1.4	3.6	6.1	2.7	4.8	5.2	2.4	4.3
OBC	0.0	0.0	0.0	0.0	0.0	0.0	39.7	32.2	37.0	44.4	37.9	42.2
Share : Establishments With Hired Workers
Total No	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
SC	2.5	2.0	2.2	3.5	2.5	3.0	3.9	3.6	3.7	6.4	5.0	5.7
ST	1.1	0.7	0.9	1.5	0.7	1.1	2.1	1.8	1.9	3.0	1.8	2.4
OBC	0.0	0.0	0.0	0.0	0.0	0.0	24.0	24.2	24.1	31.3	29.8	30.6
Share : All Enterprises
Total No	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
SC	9.8	5.4	8.1	11.2	5.9	9.0	9.0	5.8	7.7	10.0	7.0	8.8
ST	3.4	1.2	2.5	4.1	1.1	2.9	5.2	2.3	4.0	4.6	2.1	3.6
OBC	0.0	0.0	0.0	0.0	0.0	0.0	36.0	29.1	33.1	40.6	34.2	38.1
Source : Economic Census 2005 and previous issues

While the addition to own account enterprises were 7.4 million that in Establishment with hired workers 3.1 million workers during the period with growth rate faster in Establishment than in OAE accounts. The share of OBC owned OAE enterprises fell with the corresponding increase in establishment with hired workers between 1998 and 2005. In 2005 there were 159.3 million OBC owned enterprises with 71.4 per cent OAE enterprise and 28.6 per cent establishment with hired workers. As against this in 1998 there were 100.6 million OBC owned enterprises with 78.5 per cent OAE enterprises and 21.5 per cent establishment with hired workers.

Agricultural Enterprises

Scheduled caste owned agricultural enterprises rose about 13 times from .5 million in 1980 to 6.1 million enterprises in 2005 with its share rose from 3.3 per cent to 10.1 percent during the period. SC owned agricultural OAE enterprises rose to 5.3 million in 2005 from 0.3 million in 1980. Share of SC owned agricultural establishment with hired workers share increased from 5.5 per cent in 1980 to 8.4 per cent in 2005.

Table 9: Social Group Ownership of Enterprise
	1980			1990			1998			2005
	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All
Agricultural Enterprises
Own Account Enterprises
Total No	10948	1354	12301	18438	1864	20303	28862	2167	31029	48480	2842	51322
SC	311	37	349	2586	273	2859	2465	202	2667	5081	255	5335
ST	985	56	1041	1772	69	1841	2621	107	2729	3166	129	3295
OBC	0	0	0	0	0	0	10743	987	11730	22695	1519	24214
Establishments With Hired Workers
Total No	1893	384	2277	2532	487	3019	3144	575	3719	8610	868	9478
SC	109	17	126	183	25	208	207	34	241	741	55	796
ST	47	8	55	78	8	86	140	21	161	522	25	546
OBC	0	0	0	0	0	0	1263	238	1502	3509	391	3900
All Agricultural Enterprises
Total No	12841	1738	14578	20970	2351	23322	32006	2742	34748	57090	3710	60800
SC	420	54	475	2769	298	3067	2672	236	2908	5822	310	6131
ST	1032	64	1096	1850	77	1927	2761	128	2890	3688	154	3841
OBC	0	0	0	0	0	0	12006	1225	13232	26204	1910	28114
Share in percent : Own Account Enterprises
Total No	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
SC	2.8	2.7	2.8	14.0	14.6	14.1	8.5	9.3	8.6	10.5	9.0	10.4
ST	9.0	4.1	8.5	9.6	3.7	9.1	9.1	4.9	8.8	6.5	4.5	6.4
OBC	0.0	0.0	0.0	0.0	0.0	0.0	37.2	45.5	37.8	46.8	53.4	47.2
Share in Percent: Establishments With Hired Workers
Total No	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
SC	5.8	4.4	5.5	7.2	5.1	6.9	6.6	5.9	6.5	8.6	6.3	8.4
ST	2.5	2.1	2.4	3.1	1.6	2.8	4.5	3.7	4.3	6.1	2.9	5.8
OBC	0.0	0.0	0.0	0.0	0.0	0.0	40.2	41.4	40.4	40.8	45.0	41.1
Share in Percent : All Agricultural Enterprises
Total No	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
SC	3.3	3.1	3.3	13.2	12.7	13.2	8.3	8.6	8.4	10.2	8.4	10.1
ST	8.0	3.7	7.5	8.8	3.3	8.3	8.6	4.7	8.3	6.5	4.2	6.3
OBC	0.0	0.0	0.0	0.0	0.0	0.0	37.5	44.7	38.1	45.9	51.5	46.2
Source : Economic Census 2005 and previous issues

As against this ST owned agricultural enterprises rose from 1.1 million in 1980 to 3.8 million in 2005, however, its share declined to 6.3 per cent in 2005 from 7.5 per cent in 1980 (Table 9).OBC owned enterprise during 1998 to 2005 witnessed an addition of 14.9 million in seven years. OAE enterprise rose from 11.7 million 1998 to 24.2 million in 2005 and number of Establishment with hired workers augmented by 2.4 million enterprises during the period.

Non-Agricultural Enterprises

While the number of SC owned non-agricultural enterprises more than doubled from 14.3 million in 1980 to 30.8 million in 2005, their share at about 8.5 per cent was stationary. Share of SC owned non-agricultural enterprises OAE enterprises registered a fall from 11.0 per cent in 1980 to 10.6 per cent in 2005 (Table 10).

Table 10: Social Group Ownership of Enterprise
	1980			1990			1998			2005
	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All
Non-Agricultural Establishment
Own Account Enterprises
Total No	75509	45981	121491	94735	61790	156526	107145	75583	182728	132622	85457	218078
SC	9978	3386	13363	12666	4772	17437	11923	5374	17297	15712	7377	23089
ST	2492	669	3161	3707	806	4513	5652	1965	7618	6323	2013	8336
OBC	0	0	0	0	0	0	43185	24076	67260	57655	31914	89568
Establishments With Hired Workers
Total No	23064	24483	47547	31517	38657	70174	37923	48089	86012	65649	73743	139392
SC	506	489	994	1019	961	1980	1391	1731	3122	4008	3675	7683
ST	217	159	376	429	259	688	725	831	1556	1724	1308	3032
OBC	0	0	0	0	0	0	8575	11533	20109	19731	21876	41607
All Non-Agricultural Enterprises
Total No	98573	70464	169038	126252	100447	226700	145068	123672	268740	198271	159200	357470
SC	10484	3875	14357	13685	5733	19417	13314	7105	20419	19720	11052	30772
ST	2709	828	3537	4136	1065	5201	6377	2796	9174	8047	3321	11368
OBC	0	0	0	0	0	0	51760	35609	87369	77386	53790	131175
Share – Own Account Enterprises
Total No	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
SC	13.2	7.4	11.0	13.4	7.7	11.1	11.1	7.1	9.5	11.8	8.6	10.6
ST	3.3	1.5	2.6	3.9	1.3	2.9	5.3	2.6	4.2	4.8	2.4	3.8
OBC	0.0	0.0	0.0	0.0	0.0	0.0	40.3	31.9	36.8	43.5	37.3	41.1
Share – Establishments With Hired Workers
Total No	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
SC	2.2	2.0	2.1	3.2	2.5	2.8	3.7	3.6	3.6	6.1	5.0	5.5
ST	0.9	0.6	0.8	1.4	0.7	1.0	1.9	1.7	1.8	2.6	1.8	2.2
OBC	0.0	0.0	0.0	0.0	0.0	0.0	22.6	24.0	23.4	30.1	29.7	29.8
Share :All Non-Agricultural Enterprises
Total No	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
SC	10.6	5.5	8.5	10.8	5.7	8.6	9.2	5.7	7.6	9.9	6.9	8.6
ST	2.7	1.2	2.1	3.3	1.1	2.3	4.4	2.3	3.4	4.1	2.1	3.2
OBC	0.0	0.0	0.0	0.0	0.0	0.0	35.7	28.8	32.5	39.0	33.8	36.7
Source : Economic Census 2005 and previous issues

ST owned non-agricultural enterprises increased from 3.5 million to 11.4 million during 1980-2005 and their share from 2.1 per cent to 3.2 per cent during the period. While OAE enterprises owned by ST increased from 3.2 million to 8.3 million between 1980 and 2005 that of Establishment with hired workers rose from 0.4 million to 3.0 million during the 25 year period under review.An escalation in the number of OBC owned non-agricultural enterprises during 1998-2005 at 21.5 million was substantial and their share among all enterprises rose from 23.4 per cent to 29.8 per cent during 1998-2005.

* This note has been prepared by R.Krishnaswamy

Highlights of Current Economic Scene

AGRICULTURE

India ’s state-run agencies have started purchasing paddy from the farmers of Haryana and Punjab . So far 700,000 metric tonnes of paddy have been purchased from these states. Usually, rice procurement season starts on October 1, but this year, government has begun procuring from September 22, 2008 in Haryana, while in Punjab it has started on September 29, 2008 due to a request from the state government. According to official sources, the procurement would pick up pace further after Dusshera festivities in eastern and northern India . Paddy is being procured at a minimum support price (MSP) of Rs 800 to Rs 850 per quintal. Some analysts are of the view that early procurement would be the first tangible sign of a good crop-size and could encourage the government to loosen trade curbs.

Even though festive season has set in, state governments like Uttar Pradesh and Assam have not lifted wheat from the open market sale of 909,000 tonnes made by union food ministry, stating that they have no plans to lift the grain at such higher rates. State governments were supposed to lift the wheat form FCI warehouses and distribute it to retail consumers through civil supply corporations. Wheat would be sold to states at a rate of Rs 1000 per quintal plus the transportation cost or freight from Punjab and Haryana.

Grants in Sugar
	Non-levy sugar quota	Expected availability from buffer stock	Expected quantity from unsold buffer stock	Total
(in lakh tonnes)
October	15	4	2	21
November	15	1	-	16
December	14	1	-	15
Total	44	6	2	52
Source: Media

To meet festive demand, the central government has allocated 5.2 million tonnes of non-levy sugar for October-December quarter as against 4.2 million tonnes during the corresponding quarter last year. Along with a carryover of 0.2 million tonnes of sugar from the previous month’s unsold quota, an expected sale of 0.4 million tonnes from the dismantled buffer and a levy quota of 0.23 million tonnes, it is expected that nearly 2.33 million tonnes of sugar would be available for the month of October as compared to 1.83 million tonnes a year ago. Unsold quantity of sugar for the allocated quota during the current quarter would be converted into levy sugar. The government would be monitoring sugar prices in the open market closely and if price increases, additional quantity of sugar would be released in the open market.

The central government has reduced the minimum export price (MEP) of onion by US $ 20 to US $ 235 per tonne with effect form October 1, 2008 to boost exports of the commodity and to curb falling domestic prices. Moreover, kharif onion crop would be arriving form the state of Rajasthan in the month of October and late kharif crop from Maharashtra, Gujarat and Karnataka would be harvested form January onwards.

As per the official of National Agriculture Cooperative Marketing Federation of India (Nafed), exports of onion in September 2008 has doubled to 1.38 lakh tonnes as against 64,000 tonnes over the period of one year, taking the overall shipments to whopping 8.80 lakh tonnes so far in 2008-09 from just 4.47 lakh tonnes during the same period in 2007-08, owing to huge storage coupled with low minimum export prices. Supplies of onion have shot up by about 5 lakh tonnes to 24 lakh tonnes in financial year 2008. It is projected that if the shipments of onion continue at this rate, exports may even reach 14-lakh tonne mark this year. The shipments have shot up significantly on the back of demand for onion from neighbouring country Pakistan , which has witnessed a major loss of the crop, due to proximity.

India would import 13.5 lakh tonnes of edible oil during the first quarter of the new season in 2008-09 (November 2008 to January 2009), as consumption is expected to increase nearly by 4 per cent over the previous year. Requirement of imported oil is expected to be around 24.55 lakh tonnes during the first six months of the season as against 22.5 lakh tonnes imported during the corresponding period of 2007-08. Experts are of the view that import of edible oil would be reduced to 11.15 lakh tonnes during the second quarter (February-April) of the season as the prospects for rabi crops are bright. Total oilseed crop is expected to rise to 177 lakh tonnes during the kharif season of the oil year 2008-09 from 171 lakh tonnes recorded during the 2007-08 season, posting an increase of 6 lakh tonnes. The opening stock as on November 1, 2008 may drastically reduced to 5.5 lakh tonnes and closing stocks would be maintained around 9 lakh tonnes. Edible-oil import would reach to 53 lakh tonnes during the current oil year of 2007-08 and is expected to increase by 2-3 lakh tonnes during the season 2008-09 provided the next rabi crop is better. Overall availability of edible oil from the current kharif crop would be less by 4 lakh tonnes to 46.16 lakh tonnes from 50.13 lakh tonnes recorded in the previous year.

As per the estimates by Soyabean Processor Association of India (Sopa), country’s soyabean production is expected to cross the 10-million tonne (MT) mark in 2008. Major soybean-growing states like Madhya Pradesh, Maharashtra , Rajasthan and Andhra Pradesh are expected to produce 10.8 million tonnes of soyabean as against 9.4 million tonnes harvested during 2007, posting an increase of more than 14 per cent. Soyabean production rose by more than 23 per cent to 9.4 million tonnes in 2007, from 7.1 million tonnes achieved in 2006. Even the yield is expected to go up to 1,124 kg per hectare this year as against 1,070 kg per hectare achieved a year ago. Madhya Pradesh is expected to produce the highest 5.7 million tonnes of soyabean this year as against 4.9 million tonnes achieved last year. Total area under soyabean cultivation during the current year went up to 5.1 million hectares as against 4.8 million hectares achieved during 2007.

Trend of Soyabean crop
States	2007			2008
States	Area (lakh hectares)	Yield (in kg per hectare)	Output (lakh tonnes)	Area (lakh hectares)	Yield (in kg per hectare)	Output (lakh tonnes)
Madhya Pradesh	48.79	1021	49.81	51.43	1123	57.76
Maharashtra	26.52	1221	32.37	30.68	1189	36.48
Rajasthan	7.64	963	7.35	8.52	947	8.08
Andhara Pradesh	1.07	1278	1.37	1.5	1279	1.91
Karnataka	1.62	950	1.54	1.99	990	1.97
Chhattisgarh	1.1	800	0.88	1.21	925	1.12
Other states	1.76	800	1.41	0.9	950	0.86
Total	88.5	1070	94.74	96.24	1124	108.18
Source: Media

Indore-based Soybean Processors Association of India (SOPA) has estimated that crop output of soyabean per hectare is set to jump by 5 per cent to 1,124 kg in the Kharif season as against 1,070 kg last year, owing to improved pest control, better farm gate practices, timely sowing and favourable monsoon. Germination in the early sown crop was good with minor incidence of pest in some areas controlled by timely spraying of insecticides. Madhya Pradesh the largest producer of soyabean would grow 55 per cent of the country’s total soyabean this year, followed by Maharashtra with 30 per cent. Total acreage under soyabean has jumped by 8.76 per cent due to hike in prices of edible oil. It is estimated that output of soyabean would rise by 15 per cent to 108.2 lakh tonnes this year as compared to 94.734 lakh tonnes last year.

According to trading analysts and businessmen, increasing demand of barley from Middle-East countries and a supply shortfall from Ukraine , are likely to lead Indian barley exports to touch 150,000 tonnes by mid-November as against negligible volumes in the past years. However, Ukraine 's barley production this year is estimated to fall by 45 per cent at 6.20 million tonnes over the same period of previous year. Port data, reiterates that exports of barley worth 71,500 tonnes were shipped from Kandla port by October 25, 2008 and an additional 57,500 tonnes is expected to be shipped by the end of the month. Despite India not being one of the major producer or exporter of barley, it has gained from a tight global supply situation, which is affecting domestic prices as well.

Trade sources have reiterated that total area under cotton cultivation across the country is expected to decrease marginally, however production is likely to cross 330 lakh bales (each of 170 kg) for the new season 2008-09, owing to rise in yield per hectare in the major cotton producing states and increased coverage under Bt cotton. The average yield is expected to rise from 560.40 kg per hectare to 606 kg per hectare in the season 2008-09 as more than 80 per cent area is under Bt cottonseed as against 65 per cent in 2007-08. It is projected that if weather continues to remain favourable for cotton crop, it may even cross 332 lakh bales in 2008-2009. Overall, productivity of cotton is likely to increase by 8 per cent. Cotton production in India in the sixth consecutive year is going to set a new record by producing all time high 332 lakh bales in 2008-2009, up by 5 per cent over the previous year, despite the reports of marginal drop by 2.5 per cent in cotton acreage during the current season. Gujarat would continue to hold its position as the largest contributor by producing 113 lakh bales, followed by Maharashtra and Andhra Pradesh with 64 lakh bales and 60 lakh bales. In case of productivity, Gujarat would continue to rule the roost with expected yield of 800 kg lint per hectare, which would enable it to be the only state in the country whose yield would cross the world cotton average yield followed by Andhara Pradesh and Punjab, respectively, with expected yield of 791 kg lint per hectare and 703 kg lint per hectare. The supply situation is likely to improve by 9 lakh bales, from 369 lakh bales to 378 lakh bales, with an increase in production as well as reduction in imports in the new season. However, total off-take is likely to reduce to 305 lakh bales from 326 lakh bales, as in coming months exports are likely to be less by 20 lakh bales, whereas consumption is also likely to decrease marginally.

Coffee Board statistics revealed that India’s coffee exports for the crop year (October 2007 to September 2008) has increased by 2.54 per cent at 230,910 tonnes as against 2,25,187 tonnes exported during the previous year. In dollar terms, exports of coffee has gone up by 32.09 per cent higher at US $586.27 million as against US $443.83 million last year. In rupee terms coffee exports have gone up by 27.45 per cent at Rs 2,427.86 crore as against Rs 1,904.95 crore realised last year. In terms of unit value realisation, exports have gone up by 24.29 per cent at Rs 105,143 per tonne as against Rs 84,594 per tonne fetched last year. According to the International Coffee Organisation, global exports in the first 11 months of coffee year 2007-08 have decreased by 4.5 per cent to 86.6 million bags compared to 90.7 million bags in the same period last coffee year. On the other hand, Indian coffee exports for first-nine months have increased by 6.26 per cent at 184,976 tonnes as against last year’s exports of 174,077 tonnes.

According to latest figures compiled by the Agricultural and Processed Food Products Export Development Authority (APEDA), exports of floriculture products has declined by a whopping 48.21per cent from Rs 652 crore during 2006-07 to Rs 338 crore in the last fiscal (2007-08). Even though rupee has appreciated against major currencies, the domestic market for flowers is growing at 25 per cent annually due to the increasing use of flowers as gifts. India occupies around 0.65 per cent of the US $11 billion global flower trade. India 's domestic flower and plant market is estimated to be around Rs 1,000 crore. Floriculture cultivation is increasing at a faster rate in non-traditional states such as Uttaranchal, Himachal Pradesh and Gujarat; while production of flowers have stagnated in the traditional flower producing states like Maharashtra and West Bengal. As per the estimates, more than 1.05 lakh hectares of land is under flower production, while about 1,000 hectares is for cut flowers or under modern green houses. Experts opine that country at least needs 5,000 hectare under green house for enhancing its presence in the international market.

Industrial Production

The General Index stands at 273.0, which is 7.1% higher as compared to the level in the month of July 2007. The cumulative growth for the period April-July 2008-09 stands at 5.7% over the corresponding period of the pervious year.

Mining, Manufacturing and Electricity sectors for the month of July 2008 stand at 164.9, 293.3, and 225.9 respectively, with the corresponding growth rates of 5.0%, 7.5% and 4.5% as compared to July 2007. The cumulative growth during April-July, 2008-09 over the corresponding period of 2007-08 in the three sectors have been 4.5%, 6.1% and 2.6% respectively, which moved the overall growth in the General Index to 5.7%.

Ten out of the seventeen industry groups (as per 2-digit NIC-1987) have shown positive growth during the month of July 2008 as compared to the corresponding month of the previous year. The industry group ‘Beverages, Tobacco and Related Products’ have shown the highest growth of 28.6%, followed by 18.7% in ‘Transport Equipment and Parts’ and 16.0% in ‘Machinery and Equipment other than Transport Equipment’. On the other hand, the industry group ‘Wool, Silk and Man-made Fibre Textiles’ have shown a negative growth of 9.2% followed by 9.1% in ‘Wood and Wood Product: Furniture and Fixtures’ and 4.9% in ‘Leather and Leather & Fur Products‘.

Sectoral growth rates in July 2008 over July 2007 are 5.9% in Basic goods, 21.9% in Capital goods and 1.6% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 11.2% and 6.1% respectively, with the overall growth in Consumer goods being 7.3%.

Infrastructure

The Index of Six core-infrastructure industries having a combined weight of 26.7 per cent in the Index of Industrial Production (IIP) with base 1993-94 stood at 240.1 in July 2008 and registered a growth of 4.3 per cent compared to a growth of 7.2 per cent in July 2007. During April-July 2008-09, six core-infrastructure industries registered a growth of 3.7 per cent as against 6.6 per cent during the corresponding period of the previous year.

Crude Oil production (weight of 4.17 per cent in the IIP) registered a negative growth of 3.0 per cent in July 2008 compared to a growth rate of 0.9 per cent in July 2007. The Crude Oil production registered a growth of (-) 0.9 per cent during April-July 2008-09 compared to (–) 0.3 per cent during the same period of 2007-08.

Petroleum refinery production (weight of 2.00 per cent in the IIP) registered a growth of 11.8 per cent in July 2008 compared to growth of 4.7 per cent in July 2007. The Petroleum refinery production registered a growth of 5.4 per cent during April-July 2008-09 compared to 11.0 per cent during the same period of 2007-08.

Coal production (weight of 3.2 per cent in the IIP) registered a growth of 5.5 per cent in July 2008 compared to growth rate of 1.1 per cent in July 2007. Coal production grew by 7.7 per cent during April-July 2008-09 compared to an increase of 0.8 per cent during the same period of 2007-08.

Electricity generation (weight of 10.17 per cent in the IIP) registered a growth of 4.5 per cent in July 2008 compared to a growth rate of 7.5 per cent in July 2007. Electricity generation grew by 2.6 per cent during April-July 2008-09 compared to 8.1 per cent during the same period of 2007-08.

Cement production (weight of 1.99 per cent in the IIP) registered a growth of 8.8 per cent in July 2008 compared to 9.4 per cent in July 2007. Cement Production grew by 6.5 per cent during April-July 2008-09 compared to an increase of 7.7 per cent during the same period of 2007-08.

Finished (carbon) Steel production (weight of 5.13 per cent in the IIP) registered a growth of 1.9 per cent in July 2008 compared to 10.8 per cent (estimated) in July 2007. Finished (carbon) Steel production grew by 3.8 per cent during April-July 2008-09 compared to an increase of 6.8 per cent during the same period of 2007-08.

Inflation

The official Wholesale Price Index for 'All Commodities' (Base: 1993-94 = 100) for the week ended 20th September 2008 declined marginally to 241.0 from 241.1 (Provisional) for the previous week.

The annual rate of inflation, on point to point basis, stood at 11.99 percent for the week ended 20/09/2008 as compared to 3.51 percent during the corresponding period a year ago.

Index of Primary Articles major group declined by 0.2 percent due to lower prices of groundnut seed (8%), raw rubber (3%) and castor seed (1%)..

The annual rate of inflation, calculated on point to point basis, for ‘Primary Articles’ stood at 11.29 percent as compared to 6.21 percent a year ago.

The index for fuel power, light and lubricants remained unchanged at its previous week's level of 375.3.

The index for manufactured products rose by 0.1 percent irrespective of fall in food products prices by 0.5 per cent due to higher prices of pulp, safety matches and sulpha methoxozole , foundary pig iron and basic pig iron, zinc ingots , power looms and roller bearings.

For the week ended 26/07/2008, the final wholesale price index for 'All Commodities’ (Base: 1993-94=100) stood at 240.7 as compared to 239.6 (Provisional) and annual rate of inflation based on final index, calculated on point to point basis, stood at 12.53 percent as compared to 12.01 percent (Provisional) reported earlier vide press note dated 08/08/2008.

Financial Markets

Capital Market

Primary Market

According to media sources, out of the 40 companies that were listed in 2008, 32 are trading below their issue prices (i.e. at lower prices than was offered to the public). The average initial public offer (IPO) has lost 31 per cent from its date of listing this year, in line with the correction in broader market indicators.

Gujarat Pipavav Port Ltd (GPPL), the developer and operator of Pipavav port, the country’s first private sector port, has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an IPO aggregating Rs 500 crore for cash at a price to be decided through 100-per cent book-building process,

On October 1, WABCO-TVS Ltd’s first day of listing on the stock exchanges, it opened at Rs 299.90 and closed higher at Rs 321.85 on the Bombay Stock Exchange (BSE). The share, of a face value of Rs 5, touched a high of Rs 374

Tata Motors stock prices on October 3, dipped below the rights issue price. The stock closed at Rs 330.70, below the rights price of Rs 340. The stock hit the 52-week low of Rs 325 during the session. The rights price was at a discount to the market price when it has been announced.

Secondary Market

Anxiety and uncertainty over the approval of the bailout package by the US House of Representatives kept the market on edge. Stocks fell sharply during the week amid uncertainty about the future of the US economy. Wary investors continued to unload shares across-the-board as uncertainty persisted over the $700 billion US financial sector bailout plan. The barometer index BSE Sensex hit 2-year low during the week. The US Senate on October 1, 2008, passed the government's financial rescue plan after the House of Representatives rejected it in its original form. The House is expected to vote on the revised bill on October 3, 2008. Under the plan, the US Treasury would buy illiquid assets held by financial institutions, in the hope of restoring confidence and thawing credit markets vital to the wider economy. The BSE 30-share Sensex fell 575.86 points or 4.40 per cent to 12,526.32 in the week ended Friday, 3 October 2008. The BSE Mid-Cap index declined 5.32 per cent at 4,677.80 and BSE Small-Cap index declined 6.76 per cent at 5,465.40. The NSE Nifty fell 166.95 points or 4.18 per cent to 3818.30.

Among the sectoral indices of BSE, all the stocks under performed during the week. Metal declined 11.4 per cent followed by Reality (7.43 per cent) and Oil and Gas (7.21 per cent). Reports of major steel companies cutting prices to counter slowing demand resulted in steel stocks being hit. Selling in the Reliance Industries scrip put pressure on the oil and gas index.

Over 1,000 actively traded stocks hit their 52-week lows during intra-day trades on September 29. The BSE Sensex fell to its 18-month low of 12,403 during the morning trade and closed at 12,596, a few notches above its 52-week low of 12,576 on July 16, 2008. Nifty too fell to an intra-day low of 3,777, the lowest level since April 9, 2007.

The SEBI is likely to ease the current restrictions on investments by foreign institutional investors (FIIs) through Participatory Notes. A year ago, in October 2007, SEBI had banned fresh issue of P-Notes by FIIs as a measure to check the massive flow of foreign funds into the local stock markets. The huge inflows had led to ‘overheating’ of the markets at that time, making it difficult for the financial market regulators to handle the excess liquidity. According to the sources, the capital market regulator may lift the existing ban on fresh issue of P-Notes in the light of the tight liquidity conditions prevailing in the market.

The worsening financial crisis in the US has led to a selling frenzy among foreign funds, which have invested in Indian stocks. Three major funds — Morgan Stanley, Goldman Sachs and Merrill Lynch — have already offloaded as much as Rs 170 crore in open market transactions. Analysts believe the liquidity crunch witnessed by major global financial institutions has made them heavy sellers in stocks from emerging markets including India , as they need cash back home. According to data available with market regulator SEBI, FIIs have sold off shares worth $1,998.50 million (Rs 8,061 crore) so far this month. In the past week alone, FIIs offloaded shares worth $549 million (about Rs 2,277 crore). Morgan Stanley sold off shares worth Rs 104 crore, while Merrill Lynch and Goldman Sachs offloaded equities worth Rs 36 and 30 crore, in a host of domestic firms in bulk deals on the bourses during the week

The top five mutual funds, which account for more than 35 per cent of the total assets under management (AUM), saw a decline in their average AUMs in the range of 1 to 6 per cent thanks to tightening liquidity in the money market. According to the monthly data released by the Association of Mutual Funds in India (AMFI), Reliance MF retained its top spot with average AUM of Rs 86,494.45 crore. HDFC MF and ICICI Prudential mutual fund came second and third with AUMs of Rs 51,998 crore and Rs 48,772 crore, respectively. Public sector fund house UTI mutual fund claimed the third position with Rs 44,623 crore and Birla Sun Life the fourth with Rs 37,577 crore.

The National Stock Exchange (NSE) is planning to launch its web-based application for brokers — called the National Exchange for Automated Trading on Web (NOW) — to provide a single front-end platform for trading members to access NSE cash, futures and options segments, currency derivatives and NCDEX commodity derivatives on the same trading terminal. Of 1,000 members, 500 have signed up for NOW. The exchange first introduced this application during the launch of currency derivatives in August and plans to introduce other products on this application in the future.

The Reserve Bank of India (RBI) and finance ministry have cleared the participation of FIIs in Indian depository receipts (IDRs). The proposal has been forwarded to the ministry of corporate affairs for clearance before the decision is notified.

Derivatives

The week saw moderate volumes and a strong focus on index instruments as traders seemed afraid to make large commitments on either side of the fence. Prices continued to drop as the selling pressure from FIIs continued. The aggregate turnover of cash and derivatives segments of stock exchanges increased by 12 per cent in the first half (April-September) of the current financial year, the lowest growth rate since the second half (October-March) of 2004-05. The low growth in turnover is partly owing to a decline in stock prices by around 39 per cent since January 8, 2008, and a drop of 18 per cent between April and September this year. In the second half of FY05, bourses had reported a 13 per cent decline in the combined turnover despite a 16.3 per cent rise in the Sensex during the period. The aggregate turnover of NSE on both cash and futures and options (F&O cent) increased by 14 per cent in the first half of FY09, with F&O vumes increasing by 13 per cent and turnover on the cash segment posting a 21 per cent rise. BSE, which has a share of 8 per cent in the total market turnover, saw its volumes dipping by 6 per cent in the first of FY09, registering a decline for the first time since April-September 2005. The cash market generated 98 per cent of the bourse's total turnover, while its F&O segment accounted for 2 per cent of the volumes. NSE's F&O segment accounted for 79 per cent of its trading volumes, while its cash segment contributed the remaining 21 per cent to its turnover. Overall, the F&O segment has remained the prime driver of volumes, with its share in the total turnover hovering around 72 per cent in the last two years. In 2001-02, the derivatives' share in the total turnover was 10 per cent, which increased to 32 per cent in 2002-03, rose to 57 per cent in 2003-04 and jumped to 61 per cent in 2004-05.

The sudden and sharp fall on Friday added to the already weakening trend in Nifty futures, which ended the week 3851 points against its previous week’s close of 3998. But what’s worth noting is that the Friday fall came with a huge accumulation of short positions not just in Nifty futures but in many frontline stocks such as Reliance Industries, Tata Steel, NTPC and L&T as well. The premium of Nifty October future, which was about 13 points last week, has now widened to 32.7 points, mainly due to heavy selling in cash segment.

Government Securities Market

Primary Market

On October 01, 2008, RBI auctioned 91-day and 182-day T-bills for the notified amounts of Rs.5,000 crore and Rs.2,000 crore respectively. The cut-off yields for 91-day and 182-day T-bills were 8.86 per cent and 9.01 per cent, respectively.

Secondary Market

Call rates hovered in the range of 13.5-16 per cent, with cash tightness intensifying on account of higher demand in a holiday shortened week. Rates jumped to 17.5 per cent, as banks looked to cover reserve requirements in advance. Bond prices remained buoyant powered by receding global oil prices and banks’ demand for maintaining the statutory reserve ratios The 10-year benchmark yield closed at 8.31 per cent, down over 15 bps over the week, with bonds helped by lower oil and comments from ministry officials also helping the sentiment. The WPI inflation rate is lower-than expected at 11.99 per cent Y-o-Y. Bonds rallied over the week despite higher call and though helped by the above factors, the rally was also a pullback correction from the previous week.

Liquidity remained tight, largely on account of the massive unwinding of positions by hedge funds and foreign institutional investors for repatriation of capital back home to their beleaguered parents. The tight global liquidity situation was despite the massive Federal Reserve programme for liquidity intervention. The bid to cover ratio for the Federal Reserve’s auction of Feds Treasury security lending facility (TSLF) was 1.96. A high ratio indicates high demand. The TSLF is a 28 day liquidity support mechanism, where participants are provided Treasuries in exchange for eligible collateral securities, mostly mortgage backed securities. Yet, FIIs and hedge funds remained cash strapped. FII unwinding, both debt and equity, amounted to $1.3 billion in September alone. The tight situation was evident from the recourse to the liquidity adjustment facility (LAF) window. At the weekend LAF auctions, banks and PDs borrowed Rs 65,095 crore. The tight liquidity conditions were also evident from the high cut- off yields at the 91-day T-bill auctions. The cut-off yield was 8.86 per cent last week, or up 30 basis points from the week. The weighted yield was also level.

Daily trade volume was about Rs 7,200 crore during the week, up from the previous week’s Rs 5,900 crore.

Bond Market

The AAA 5-year yield edged up to 11.11 per cent from 11.05 per cent. At the nearer segments, yields were higher reflecting the tight liquidity conditions, but trading activity in the bond market was meager. The 5-year yield finished offering a spread of 257 bps from 236 bps as the underlying GOI yields eased. At the shorter segment of the non-SLR market, the 3-month P1+ CP rate jumped to 13.38 per cent, in response to tighter cash conditions. With liquidity outlook weak, no improvement in the corporate bonds trading is expected

Foreign Exchange Market

The rupee remained volatile throughout the week in line with local stock markets and touched $47.30, its lowest level since June 2003. The dollar demand by corporates and oil refiners fell in the local and global stocks as well as strengthening of dollar against other currencies weighed on the investor sentiment thereby leading to FII outflows. However, the decline in local unit was trimmed possibly by support from state-owned banks apart from a big chunk of inflows. The annualised premia remained choppy throughout the week, ending lower in annualised terms as spot rate raced higher. Forward premia, barring short term premia, fell below one per cent. One, three, six and twelve month forward premia was down to 0.26 per cent (2.97 per cent), 0.60 per cent (2.37 per cent), 0.73 per cent (1.68 per cent) and 0.64 per cent (1.36 per cent).

Foreign exchange reserves of eight Asian countries have depleted by a record $36 billion in August alone, as foreign investors pulled out money and central banks were seen using the reserves to prop up falling local currencies. Though the reserves of these Asian countries have dropped in the last four months, economists say a repeat of currency crisis that hit South East Asian countries a decade back is unlikely because of improved external reserves.

Foreign exchange reserves dipped $153 million during the week ended September 26 as RBI sold dollars to meet demand from importers. According to RBI, total foreign exchange reserves, including gold and SDR dipped $153 million during the week ended September 26 to touch $292 billion. The reserves dipped largely because foreign currency assets, predominantly comprising dollars; euro; pound and yen, among others, fell during the week by $159 million. The level of gold and SDR — the currency with the IMF — in reserves remained unchanged during the week. While reserves with IMF rose $9 million during the week.

Currency Futures

MCX Stock Exchange Ltd (MCX-SX), a subsidiary of the country's leading commodity bourse MCX, will commence live trading in currency derivatives from October 7, 2008. The trading timing would be from 0900 to 1700 hours from Monday to Friday, according to the exchange statement. To start with, MCX-SX would be offering USD-INR futures monthly contracts for a maximum of 12 months ahead.

Commodities Futures derivatives

Domestic copper futures opened 4 percent down on Friday as a strong dollar and weak economic data from the U.S. weighed on sentiment. A sharper-than-expected fall in auto sales as well as factory orders in the U.S. fuelled concerns of slowing demand from the world's second-biggest consumer of the metal. At 10.04 a.m., the benchmark November copper traded down 4.01 percent at 277.85 rupees per kg.

On October 1, sugar futures traded a shade lower on the National Commodity and Derivatives Exchange (NCDEX) as speculators indulged in selling on expectations that government might raise supplies in the open market. All the running three contracts -- October, November and December -- were trading in negative zone with small losses. The most-active October contract fell 0.3 per cent at Rs 1,776 per quintal on the NCDEX counter with a business volume of 90 tonnes. Sugar for delivery in November fell 0.25 per cent to Rs 1,827 per quintal with a volume of 150 tonnes, while far-month December contract shed 0.30 per cent at Rs 1,899 per quintal in a trading volume of 300 tonnes.

MCX gold and crude oil futures fell sharply from the previous week’s level on October 3, following weak overseas markets. On the other hand, NCDEX guarseed and soyabean futures ruled mixed on the weekend. Crude oil prices fell sharply in the last week, as stronger dollar against other major currencies and concerns over weakening oil demand weighed on oil prices. Crude oil dropped below $94 per barrel and has declined 12 per cent last week as higher borrowing costs and reports showing worsening economy spurred skepticism that the US government’s $700 billion bank-bailout plan will stimulate growth. London gold prices also fell sharply in the last week, after the US senate approved $700 billion bailout plan, which boosted dollar against major currencies. Weakness in oil prices also weighed on gold prices. MCX gold October contracts were higher to settle at Rs 12,783 per 10 gram over the previous week. Spot gold touched a low of $825 per ounce, falling from a high of $926.

Banking

At least six banks led by IDBI Bank have funded the Rs 1,194 crore debt for the project along Versova-Andheri-Ghatkopar corridor. Mumbai Metro One Pvt Ltd, the special purpose vehicle (SPV) formed to execute the Rs 2,356 crore project signed the loan agreements with the bank consortium. IDBI has contributed Rs 300 crore for the project while IIFCL UK has pumped in $70 million (around Rs 287 crore) foreign currency debt for the project. Other banks that have participated in the consortium include Canara Bank, Oriental Bank of Commerce, Indian Bank, Karur Vysya Bank and Corporation Bank. Apart from the debt, the project has an equity capital of Rs 512 crore and also received Rs 650 crore viability gap funding, taking the total project capital to Rs 2,356 crore.

The RBI will launch the Basel II reporting system using an advanced tool, eXtensible Business Reporting Language (XBRL), through the existing online returns filing system (ORFS). India is probably the first among developing countries to introduce XBRL, standard in its reporting system. The system also makes use of latest technology tools, some of which are already built into its ORFS. XBRL is an electronic format for communication of business and financial data which is revolutionizing business reporting around the world. The standirisation in-built in the XBRL documents provides significant benefits in the preparation, analysis and communication of business information. ORFS also removes submission of multiple copies of the same return to various departments of the RBI, thus simplifying the data reporting process both for banks and the RBI. The new system offers cost savings, greater efficiency and improved accuracy and reliability to those involved in supplying or using financial data. The central bank introduced the system for a few returns, such as Section 42(2) Form A return of the RBI Act, with the objective of eliminating the need for paper based data submission.

Insurance

Soon the insurance companies will be allowed to raise capital through hybrid capital. The government has made quite a few proposals like branch offices for reinsurers and the hybrid capital to be provided to the insurers in the Insurance Amendment Bill yet to be cleared by the cabinet.

Corporate

Twenty-eight months after announcing the small-car project at Singur in West Bengal , and having invested around Rs 1,500 crore at the site, Tata Motors have announced the company’s decision to pull out of the state its plant for the much awaited Rs 1-lakh Nano.

Ending days of suspense over the buyout of Lehman Brothers business in India after the investment bank filed for bankruptcy in the US , Japanese company Nomura Securities has announced that it has acquired the back-office operations of the firm in India .

Public sector oil major ONGC has announced the expansion of its Desalter plant located at Nawagam near Kheda with an investment of about Rs 35 crore. Currently, the plant processes about 12,000 to 13,000 tonne of crude. However, the plant’s current capacity if 15,000 tonne and there would be substantial advancement in the processing capacity after the proposed expansion.

Information Technology

The board of directors at SAP consulting major Axon Plc of the UK has recommended the £441 million counter offer for the company by HCL Technologies, dropping an earlier preference for the £407 million bid by Infosys Technologies.

Telecom

Shyam Telelink Ltd, a 74:26 joint venture between the Russian Corporation (SSA) and India ’s Shyam Group, has launched their CDMA mobile services in the Rajasthan circle. The launch marks the first commencement of services by a new licencee, which was awarded license by the Department of Telecommunications (DoT) last year. It also marks the beginning of mobile services by a Russian telecom major in the country. Shyam Telelink has a pan-India license in 22 circles and the company is planning to complete its presence across the nation by the middle of next year.

In a bid to increase its footprint in the Indian telephone market, Idea Cellular, the Aditya Birla Group company has launched its GSM services in Bihar and Jharkhand starting from October 1, 2008. The company will be the fifth player in this market.

Reliance Communications has commented the soft launch of its GSM network across major cities including Mumbai, Delhi , Gujarat, Punjab and Southern states. The company has invested Rs 800 crore each in Mumbai and Delhi to set up 2,500 towers respectively in two largest circles in the country.

Macroeconomic Indicators

Table 1 : Index Numbers of Industrial Production (1993-94 =100)

Table 2 : Production in Infrastructure Industries (Physical Output Series)

Table 3: Procurment, Offtake and Stock of foodgrains

Table 4: Index Numbers of Wholesale Prices (1993-94 = 100)

Table 5 : Cost of Living Indices

Table 6 : Budgetary Position of Government of India

Table 7 : Government Borrowing Programmes and Performance

Table 8 : Scheduled Commercial Banks - Business in India

Table 9 : Money Stock : components and Sources

Table 10 : Reserve Money : Components and Sources

Table 11 : Average Daily Turnover in Call Money Market

Table 12 : Assistance Sanctioned and Disbursed by All-India Financial Institutions

Table 13 : Capital Market

Table 14 : Foreign Trade

Table 15 : India's Overall Balance of Payments

Table 16 : Foreign Investment Inflows

Table 17 : Foreign Collaboration Approvals (Route-Wise)

Table 18 : Year-Wise (Route-Wise) Actual Inflows of Foreign Direct Investment (FDI/NRI)

Table 19 : NRI Deposits - Outstandings

Table 20 : Foreign Exchange Reserves

Table 21 : Indices REER and NEER of the Indian Rupee

Table 22 : Turnover in Foreign Exchange Market

Table 23 : India's Template on International Reserves and Foreign Currency Liquidity [As reported under the IMFs special data dissemination standards (SDDS)

Table 24 : Settlement Volume and Netting Factor for Government Securities Transactions Settled at CCIL - Monthly, Quarterly and Annual Basis.

Table 25 : Inter-Catasegory Distribution of All Types of Trade in Government Securities Settled at CCIL (With Market Share in Respective Trade Types)

Table 26 : Settlement Volume and Netting Factor for Total Forex Transactions Settled at CCIL - Monthly, Quarterly and Annual Basis.

Table 27 : Inter-Category Distribution of Total Foreign Exchange Transactions Settled at CCIL (With Market Share in Respective Trade Types)

Memorandum Items

CSO's Quarterly Estimates of GDP

GDP at Factor Cost by Economic Activity

India's Overall Balance of Payments: Quarterly

India's Overall Balance of Payments: Annual

*These statistics and the accompanying review are a product arising from the work undertaken under the joint ICICI research centre.org-EPWRF Data Base Project.

LIST OF WEEKLY THEMES

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3.Social Group Ownership

Ownership as per Economic Census – 2005

Employment in All Enterprise by Ownership

Employment in Non-Agricultural Enterprises by Type of Ownership

All Enterprises

All Enterprises

Share : All Enterprises

Source : Economic Census 2005 and previous issues

All Agricultural Enterprises

Share in Percent : All Agricultural Enterprises

Source : Economic Census 2005 and previous issues

All Non-Agricultural Enterprises

Share :All Non-Agricultural Enterprises

Source : Economic Census 2005 and previous issues

Financial Markets

Banking

Insurance

Information Technology

Telecom