|
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
|
|