Policy

Informal push: 27% rise in non-agri enterprises

Our Bureau New Delhi | Updated on January 12, 2018

There has only been a marginal increase in the number of workers engaged in unincorporated non-agricultural enterprises   -  REUTERS

Gross valued added by these firms zooms, own enterprises still dominate: NSSO survey

The number of unincorporated non-agricultural enterprises (those not registered under the Companies Act, 1956), excluding construction, grew by 27 per cent to 6.34 crore in 2015-16, compared with 5 crore in 2010-11, according to the 73rd Round of survey by NSSO, indicating a further growth in the informal sector.

At the all-India level, 98.3 per cent of such enterprises were perennial in nature, with the share of seasonal and casual enterprises at 1.3 per cent and 0.4 per cent, respectively.

The latest survey, which gives a peek into the economic condition of entrepreneurship in India, however, does not give a break-up of outstanding loans and interest or rent payable of these 6.34 crore firms. A similar survey conducted during July 2010- June 2011 as part of NSS 67th Round had put outstanding loans at an average of ₹17,681 per enterprise for five crore units, and annual rent payable per enterprise at ₹5,821.

Rural-urban gap

As per the 73rd Round, the number of enterprises in rural areas has decreased at 51.3 per cent (54 per cent in the 67th Round), while those in urban areas has grown to 48.7 per cent (46 per cent), as per ‘Key Indicators of Unincorporated Non-Agricultural Enterprises (Excluding Construction) in India’, released by the National Sample Survey Office (NSSO) on Thursday.

Out of the total 6.34 crore enterprises, 31 per cent (against 30 per cent) were engaged in manufacturing, 36.3 per cent (36 per cent) in trading and 32.6 per cent (34 per cent) were in other services. The enterprises engaged in non-captive electricity generation and transmission that were not covered in the 67th round, had a very low estimated share of about 0.005 per cent. The results of the survey also showed that during 2015-16, about 11.13 crore workers were engaged in unincorporated non-agricultural enterprises (excluding construction), against 10.8 crore in the 67th Round. Among these, 55 per cent worked in urban areas, higher than 51 per cent in 2010-11, while there was a decrease in rural areas with 45 per cent working in such enterprises, against 49 per cent in the last round.

‘Own Account Enterprises’ continue to be dominant employers by engaging 62 per cent of the workforce across activity categories, with average annual emoluments estimated ₹87,544 against ₹47,016 in the earlier Round. Kerala paid the highest at ₹1,25,616, while Assam the lowest at ₹53,726 annual emoluments in 2015-16.

About 87 per cent of the unincorporated non-agricultural enterprises were reported to have operated out of a fixed location either within the households (about 44 per cent) or outside the households (43 per cent) during 2015-16.

Gross value added zooms

The aggregate annual gross value added by these enterprises was estimated at ₹11,52,338 crore (₹6,28,356 crore in the 67th Round), with urban enterprises contributing 70 per cent, against 30 per cent by rural enterprises.

Proprietary enterprises (wholly-owned by a single individual) had the highest share (96 per cent) in the 6.34 crore unincorporated non-agricultural enterprises, with the share of partnership enterprises at 2 per cent and self-help groups at only 1.8 per cent.

At the all-India level, nearly one-fifth of the enterprises were female-headed proprietary enterprises, said the survey.

Published on June 30, 2017

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