India - Unorganised Manufacturing Enterprises Survey [AREA Frame] : NSS 62nd Round : July 2005 - June 2006

India Unorganised Manufacturing Enterprises Survey [AREA Frame] : NSS 62nd Round : July 2005 - June 2006

Enterprise Survey Following the first Economic Census 1977, small establishments and enterprises not employing any hired worker [and henceforth called 'own account enterprises' (OAEs)] engaged in manufacturing and repairing activities were surveyed on sample basis in the thirty-third round of NSS during 1978-79.

As a follow-up to the second Economic Census 1980, own account enterprises and Non-directory Establishments engaged in manufacturing and repairing activities (i.e., OAMEs and NDMEs respectively) were surveyed in the fortieth and forty-fifth rounds of NSS during July 1984-June 1985 and July 1989-June 1990 respectively. The Directory Manufacturing Establishments (DMEs) were surveyed during October 1984-September 1985 and October 1989 to September 1990 respectively by a group of special staff (Assistant Superintendents only) of the Field Operations Division (FOD) of the NSSO under the technical direction of the CSO.

As a follow-up to the third Economic Census 1990, the first integrated survey on unorganised manufacturing and repairing enterprises covering OAMEs, NDMEs and DMEs was undertaken during the fifty-first round of NSS (July 1994-June 1995).

Following this, two other surveys were undertaken - (i) Special Enterprise Survey on enterprises in the unorganised sector during the period August 1998 to June 1999 and (ii) Informal sector enterprises as part of NSS 55th round during July 1999 to June 2000. Manufacturing sector was part of coverage in both these surveys.

As a follow up of fourth Economic Census 1998, survey of manufacturing enterprises in the unorganised sector was conducted in the 56th round of NSS during July 2000 to June 2001.

The 62nd round was basically a repetition of 56th round survey in terms of concepts and coverage.

ID Number DDI-IND-MOSPI-NSSO-62nd-Sch2dot2-AF-2005-06

The term ‘unorganised manufacture’ under the coverage of 62nd round basically referred to all manufacturing enterprises, which were not covered by ASI. All government and public sector undertakings were also outside the coverage of the survey. In terms of National Industrial Classification (NIC) 2004 codes, the 62nd round survey on unorganised manufacture covered the NIC 2-digit codes 15-37. In addition, enterprises engaged in cotton ginning, cleaning and baling (NIC 2004 code 01405) were also covered under the survey It is to be noted that only those manufacturing enterprises, which operated for at least 30 days (15 days for seasonal enterprises) during the last 365 days preceding the date of survey, were eligible for survey.

One salient feature of the sample design adopted during the 62nd round was the use of list frame in order to capture sufficient number of relatively ‘bigger’ manufacturing units under the coverage of the survey. It is quite natural that even within the unorganised manufacturing sector, there are likely to be some very ‘big’ non-ASI manufacturing units whose contribution to total gross value added is likely to be substantial. Thus, with a view to improving the overall estimate of gross value added per worker, total number of workers, total input, total output, etc., a dual frame approach was considered appropriate for sampling purposes in NSS 62nd round. A list of 8,000 big non-ASI manufacturing enterprises for the urban sector only was prepared as per the data of the census of manufacturing enterprises conducted by Development Commissioner of Small Scale Industries (DCSSI) in 2003. This list served as the list frame. All these units in the list frame were considered for survey without resorting to any sampling. For the coverage of all other unorganised manufacturing enterprises in the universe (i.e. other than 8,000 enterprises featuring in the list frame), an area frame approach was followed for sampling of unorganised anufacturing units in stages. It is worthwhile to mention that this dual frame approach was experimented for the first time in the 62nd round.

In the area frame approach, the list of all the villages (panchayat wards in case of Kerala) / urban blocks of the country served as the sampling frame of FSUs. The first stage units (FSUs) were villages (panchayat wards in case of Kerala) in the rural sector and urban blocks in the urban sector. The ultimate stage units were unorganised manufacturing enterprises in both the sectors.

Design-based estimates of aggregates for any selected survey characteristic were obtained separately for list frame and area frame. Finally these two sets of estimates were added to get the pooled aggregate estimate for the combined frame. .

3.1 Structure of Schedule 2.2:

Total number of blocks: - 12

Blocks 0 and 1: - identification of the enterprise

Block 2: - Some operational characteristics and background information of the enterprises.

Blocks 3, 3.1, 4 and 4.1:- These blocks of the schedule will be used to record the operating expenses and receipts of the enterprise.

Blocks 3 and 4 will record the principal expenses and receipts whereas blocks 3.1 and 4.1 will record the other expenses and receipts. Care may be taken so that there is no omission or duplication of entries on expenses between blocks 3 and 3.1. Similarly, omission or duplication of recording receipts may be avoided between blocks 4 and 4.1. Schedule 2.2 has been designed in such a way that the different types of receipts and expenses for mixed activity of enterprises can also be accommodated within the framework of blocks 3 and 4. To meet this objective, each of these two blocks has been subdivided into 2 sub-blocks. The first sub-block is meant for specifically recording the manufacturing activity whereas the second sub block is for recording the other activities, if any, including the purchase/ sale of commodities without any transformation. If the enterprise is carrying out mixed activities of two or more types of manufacturing, the data of blocks 3 and 4 will refer to all the manufacturing activities taken together.

Block 5: Calculation of gross value added of the enterprise will be done here. If the value of the receipts in block 4 is collected at ex-factory price, then distributive expenses will not be recorded in this block. In normal situations, gross value added is found as positive. However, if the gross value added arrived at is negative, remarks justifying the reason of the same must be provided.

Blocks 6 and 7: The employment and emolument related particulars of the enterprise would be recorded here.

Blocks 8 and 9: information on fixed assets and outstanding loans of the enterprise would be recorded in these blocks.

The above items of information from any enterprise were collected either from books of accounts of the sample enterprises or through oral enquiry depending upon whether the enterprises maintained books of accounts or not.

Reference Period: The reference period for recording details of various items will depend primarily on whether the enterprise under survey can provide information from their books of accounts, or they can provide information orally.

If the enterprises are providing only oral information, three kinds of reference periods will be used to collect data in different blocks of the schedule, which are reference month, reference year and last date of the reference month.

Reference Month: This period will be used to collect data on various receipts and expenses as well as value added, employment, emoluments, rent and interest payments for the enterprises providing oral information.

The survey covered the whole of the Indian Union except (i) Leh (Ladakh) and Kargil districts of Jammu & Kashmir, (ii) interior villages of Nagaland situated beyond 5 kilometres of the bus route and (iii) villages in Andaman and Nicobar Islands which remain inaccessible throughout the year. All the sample first-stage units of the districts Poonch and Rajouri of Jammu & Kashmir, became casualty and therefore, the districts Poonch and Rajouri of Jammu & Kashmir, are outside the survey coverage. . Thus, the estimates of Jammu and Kashmir and all-India estimates do not include these two districts.

The survey used the interview method of data collection

Name	Abbreviation	Affiliation	Role
Computer Centre	MOSPI, CC	M/O Statistics & Programme Implementation	Documentation of the study

2012-09-29 Version 1.0 (September 2012)

DDI-IND-MOSPI-NSSO-62nd-Sch2dot2-AF-2005-06