National Sample Survey 2005-2006 (62nd round) - Schedule 2.2 - Unorganized Manufacturing Sector in India
India, 2005 - 2006
Identification
IND_2005_NSS62-SCH2.2_v01_M
National Sample Survey 2005-2006 (62nd round) - Schedule 2.2 - Unorganized Manufacturing Sector in India
| Name | Country code |
|---|---|
| India | IND |
Informal Sector Survey [hh/iss]
The National Sample Survey (NSS), set up by the Government of India in 1950 to collect socio-economic data employing scientific sampling methods started its sixty-second round from 1st July, 2005. The survey continued up to 30th June 2006. 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 Nondirectory 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 unorganized 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 unorganized 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 unorganized sector was conducted in the 56th round of NSS during July 2000 to June 2001.The 62nd round is basically a repetition of 56th round survey in terms of concepts and coverage.
An all-India survey on unorganized manufacturing enterprises was carried out by the National Sample Survey Organization (NSSO) as a part of the 62nd round of National Sample Survey (NSS) during July 2005 - June 2006. Other subjects of inquiry were household consumer expenditure, employment and unemployment. Past surveys provided information on various operational characteristics of enterprises like location of enterprise, nature of operation, maintenance of accounts etc. in detail, as well as detailed estimates of employment, assets & borrowings. The 62nd survey round provides information on input, output & value added of unorganized manufacturing enterprises at all India level for different industry groups and at the level of States / UTs for all the industry groups taken together.
The manufacturing sector is one of the important sectors of industry in the Indian economy. As per the latest available National Accounts Statistics, during 2006-07, the manufacturing sector had a share of about 16% in the GDP at factor cost. For the purpose of data collection, the manufacturing sector has been broadly sub-divided into two categories i.e. organized and unorganized. While data for organized manufacturing sector are collected through Annual Survey of Industries (ASI), the same for unorganized manufacturing sector are collected periodically through sample surveys as follow-up surveys of Economic Censuses (EC). The unorganized manufacturing sector has roughly about one-third share in the total contribution by the manufacturing sector in the GDP.
Recognizing the importance of the unorganized manufacturing sector in terms of its share in GDP as well as in total employment, NSS has taken up this subject in many of its rounds. That way collection of data on unorganized manufacture has a long history in the NSS. In fact, the very first round of NSS had small-scale manufacturing and handicrafts as one of its subjects of enquiry. Thereafter, data on small-scale manufacture were collected also in the NSS rounds 3-10, 14, 23 and 29. These surveys used the list of villages from Population Census and list of census enumeration blocks, or lists of Urban Frame Survey (UFS) blocks of NSSO subject to their availability, as the sampling frame for selection of villages / urban blocks.
A review of the surveys conducted by NSSO in the initial rounds mentioned above indicated that a better sampling frame was necessary to generate more accurate statistics of the unorganized sector. The need for auxiliary information on areas of concentration of enterprises for stratification purpose was strongly felt for developing more efficient sampling designs. This demand ultimately culminated in the conduct of periodic Economic Censuses (EC), which provided the frame for the follow-up surveys on non-agricultural enterprises including those engaged in unorganized manufacturing.
With the launching of the EC in 1977 (five ECs have been conducted so far), the follow-up surveys of EC on unorganized manufacturing generally used the village and block level information on number of enterprises/workers as per the EC for selection of villages and urban blocks in the follow-up surveys. The approach of data collection from enterprises was also changed from the 'household approach' used earlier (i.e. prior to the launching of EC) to the 'site approach' whenever such sites existed. So far NSS has conducted six follow-up surveys of EC through rounds 33rd (1978-79), 40th (1984-85), 45th (1989-90), 51st (1994-95), 56th (2000-01), and 62nd (2005-06) with unorganized manufacture as the main subject of enquiry. In the 62nd round of NSS, area frame thrown up by the latest EC (1998) was however used only partially because the frame was considered to be old. However, for 27 cities having a population of one million or more (as per Census 2001) which are likely to have a substantial share in the total number of unorganized manufacturing enterprises in the country, a decision was taken to make use of the list of urban blocks giving count of number of enterprises/workers at the block level as per EC 1998 as the sampling frame for stratification and selection of urban blocks. For the remaining towns/cities, latest lists of UFS blocks were used as the sampling frame2. In case of rural areas, list of villages (or panchayat wards in case of Kerala) of Census 2001 served as the sampling frame for selection of villages as the first stage units (FSUs).
Sample survey data [ssd]
- enterprise
Scope
The 62nd round (July 2005 - June 2006) of NSS was earmarked for survey on (i) unorganized manufacturing enterprises under the two-digit codes 15 to 37 (Section 'D') of NIC-2004 and enterprises under cotton ginning, cleaning and baling (NIC-2004, code 01405), (ii) annual survey of consumer expenditure and (iii) survey on employment - unemployment.
Division Description
15 Manufacture of Food Products and Beverages
16 Manufacture of Tobacco Products
17 Manufacture of Textiles
18 Manufacture of Wearing Apparel; Dressing and Dyeing of Fur
19 Tanning and Dressing of Leather; Manufacture of Luggage, Handbags, Saddlery, Harness and Footwear
20 Manufacture of Wood and of Products of Wood and Cork, Except Furniture; Manufacture of Articles of Straw and Plaiting Materials
21 Manufacture of Paper and Paper Products
22 Publishing, Printing and Reproduction of Recorded Media
23 Manufacture of Coke, Refined Petroleum Products and Nuclear Fuel
24 Manufacture of Chemicals and Chemical Products
25 Manufacture of Rubber and Plastics Products
26 Manufacture of Other Non-Metallic Mineral Products
27 Manufacture of Basic Metals
28 Manufacture of Fabricated Metal Products, Except Machinery and Equipment
29 Manufacture of Machinery and Equipment N.E.C.
30 Manufacture of Office, Accounting and Computing Machinery
31 Manufacture of Electrical Machinery and Apparatus N.E.C.
32 Manufacture of Radio, Television and Communication Equipment and Apparatus
33 Manufacture of Medical, Precision and Optical Instruments, Watches and Clocks
34 Manufacture of Motor Vehicles, Trailers and Semi-Trailers
35 Manufacture of Other Transport Equipment
36 Manufacture of Furniture; Manufacturing N.E.C.
37 Recycling
Thus survey on unorganized manufacturing enterprises covered:
(a) Manufacturing enterprises not registered under Sections 2m(i) and 2m(ii) of the Factories Act, 1948
(b) Manufacturing enterprises registered under Section 85 of Factories Act, 1948
(c) Non-ASI enterprises engaged in cotton ginning, cleaning and baling (NIC- 2004, code 01405)
(d) Non-ASI enterprises manufacturing bidi and cigar (those registered under bidi and cigar workers (condition of employment) Act, 1966 as well as those un-registered)
and excluded:
(a) Repairing enterprises not falling under Section 'D' of NIC- 2004
(b) Departmental units such as Railway Workshops, RTC Workshops, Government Mint, Sanitary, Water supply, Gas, Storage, etc. in line with ASI coverage
(c) Units covered under ASI
(d) Public Sector Units
Coverage
The survey covered the whole of the Indian Union except (i) Leh and Kargil districts of Jammu & Kashmir, (ii) interior village of Nagaland situated beyond five kilometers of bus route and (iii) villages of Andaman and Nicobar Islands which remain inaccessible throughout the year. All the sample FSUs of the districts Poonch and Rajouri of the state of Jammu and Kashmir became casualty. Thus, the estimates for Jammu and Kashmir as well as for all-India do not include these areas.
Unorganized manufacturing enterprises not covered by ASI, under the two-digit codes 15 to 37 (Section 'D') of NIC-2004 and enterprises under cotton ginning, cleaning and baling (NIC-2004, code 01405). All government and public sector undertakings were outside the coverage of the survey. It is to be noted that only those 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.
Producers and sponsors
| Name | Affiliation |
|---|---|
| National Sample Survey Organization (NSSO) | Government of India, MOSPI |
| Name |
|---|
| Government of India, MOSPI |
| Name | Affiliation | Role |
|---|---|---|
| Survey Design and Research Division | National Sample Survey Organization (NSSO) | Developed sample design and survey instruments, prepared report |
| Field Operations Division | National Sample Survey Organization (NSSO) | Fieldwork |
| Data Processing Division | National Sample Survey Organization (NSSO) | Data processing and tabulation work |
| Coordination and Publication Division | National Sample Survey Organization (NSSO) | Coordinated various activities pertaining to the survey |
| Governing Council of NSSO | National Sample Survey Organization (NSSO) | Technical Guidance |
| Steering Committee and Working Group for NSS 62nd Round | National Sample Survey Organization (NSSO) | Technical Guidance |
Sampling
One salient feature of the sample design adopted during the 62nd round was the use of list frame, in addition to the usual area frame, which was done to capture sufficient number of relatively 'bigger' enterprises with a view to improving the overall estimate of gross value added per worker, total number of workers, total input, total output, etc. A list of 8,000 big non-ASI manufacturing enterprises2 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 enterprises in the universe, the usual area frame approach was followed for sampling of enterprises in stages. It is important to mention that this dual frame approach was experimented for the first time in the 62nd round. The effectiveness of using the list frame has been discussed under Chapter four.
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 first stage units (FSUs). Thus, the 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 enterprises in both the sectors. However, in case of large FSUs requiring hamlet-group (hg) / sub-block (sb) formation, one intermediate stage in the sampling involved the selection of two hg's / sb's from each FSU out of a minimum of three hg's/sb's formed in the FSU. Of these two selected hg's/sb's, one was selected with probability '1' (termed as segment 1) and another one (termed as segment 2) was selected from among the remaining hg's/sb's of the FSU at random. The hg/sb selected with certainty (i.e. segment 1) was the hg/sb having maximum number of directory manufacturing establishments (DMEs) (or with maximum number of non-directory manufacturing establishments (NDMEs) if there was no DME, or with maximum number of own account manufacturing enterprises (OAMEs) if there was no DME/NDME, or with maximum population if there was no DME/NDME/OAME3 in the entire FSU). Smaller FSUs without any hg/sb formation were identified/categorized as segment 1 for the purpose of survey (segment 2 does not exist for such FSUs). As regards the first stage stratification, two basic strata were formed within each district of a State/UT: rural stratum comprising all rural areas of the district and urban stratum consisting of all urban areas of the district. However, each city with a population of one million or more as per Census 2001 was invariably treated as a separate stratum by itself. For details of stratification, sub-stratification and selection of sample FSUs, reference may be made to Appendix-B of of the final report no.526.
For each of segments 1 and 2 for the selected sample FSUs, a frame of eligible enterprises was prepared by the field investigators by visiting each and every house/household within the selected geographical area. While doing so, if any enterprise of the list frame was encountered, care was taken not to list it again within segment 1 or 2 as a part of the area sample / area frame to guard against duplication of enterprises between the two types of frames. Listing and sampling of enterprises in the area frame was independent for each of segments 1 and 2. In this context, it may be mentioned that for each selected FSU of rural sub-strata 1 and 2 only (see Appendix B for composition of these two sub-strata), segment 9 was also carved out within the FSU, which comprised top 10 big non-ASI registered SSI enterprises (identified by jointly considering the number of workers in the enterprise and gross value of output of the enterprise) located within the boundaries of the entire FSU. The list of such units for selected FSUs was made available to the field investigators in order to facilitate formation of segment 9.
Respective frames of segments 1 and 2 in these FSUs excluded the units listed under segment 9. The effectiveness of the formation of segment 9 has been discussed under Chapter four of the final report no.526.
All the eligible enterprises listed under each of segments 1, 2 and 9 were stratified into 2 broad second-stage strata by enterprise type i.e. OAME & NDME/DME. Each of these two broad second-stage strata was further divided into 3 broad manufacturing groups (BMG) i.e. BMG 1, BMG 2 and BMG 3. BMG 1 comprised eligible enterprises belonging to NIC codes 15 and 20. BMG 2 consisted of eligible enterprises belonging to NIC Codes 23, 27, 30-35 and 01405 while all other eligible enterprises belonging to the rest of the NIC codes under coverage formed BMG 3. Thus within a segment for any given sample FSU, six ultimate second-stage strata were formed by jointly considering the broad second-stage strata and BMG. A total of 12 manufacturing enterprises - two from each ultimate second-stage stratum - were selected for detailed enquiry. In case of shortfall of enterprises in the frame of any particular second-stage stratum, compensation was made by selecting additional samples from other second-stage strata so that a total of 12 enterprises were selected from each FSU for detailed enquiry. Data from enterprises were collected from books of accounts if those were available. Otherwise, it was through oral enquiry.
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. In the final report,
discussion will be focused on the pooled estimate based on two types of frames used in
the survey.
Sample size and its limitation
Out of 8,000 enterprises selected from the list frame, data could be collected from only 2,260 enterprises (for state/UT wise distribution of allotted and surveyed numbers of enterprises as per the list frame, reference may be made to Table 2 at the end of chapter 1 of the final report no.526. Thus a large percentage (72%) of the list frame enterprises became casualties (see Chapter four for the reasons for casualties). In the area frame, 80,637 enterprises (42,050 from rural India and 38,587 from urban India) spread over 4,798 villages and 5,125 urban blocks across the country were surveyed. It is important to mention here that even though a large percentage of list frame enterprises became casualty, theoretically the surveyed enterprises netted through the list frame and area frame represented the whole universe of the unorganized manufacturing sector. The estimation procedure developed for the purpose (see Appendix B) also ensured this. The sample sizes in terms of number of FSUs and enterprises are presented in Tables 1 and 2 respectively at the end of chapter 1 of the final report no.526.
Thus, altogether a total of 82,897 unorganized manufacturing enterprises considering both list frame and area frame were surveyed. In the appendix tables, although estimates are presented at disaggregated level i.e. sector (rural/urban/combined) x enterprise type (OAME/NDME/DME/All) by NIC code (for all-India) or by state/UT, sample size at the ultimate level of disaggregating may sometimes be very small. The users of the final report are advised to look at the related sample size while using the survey results particularly at the disaggregated level.
A detailed description of the sampling procedure can be found in section 2 Appendix B in the final report 526.
The survey was conducted in 4798 villages and 5125 urban blocks. A total of 82897 enterprises (including 2260 list frame enterprises located in urban areas) were ultimately surveyed. A total of 17070820 unorganized manufacturing enterprises were estimated in India during 2005-06.
For generating any estimate, one has to extract relevant portion of the data, and aggregate after applying the weights.
The weights (multipliers) are Sub-sample-wise and based on the following variables available in the data - NSS, NSC and MLT
For generating subsample-wise estimates based on data of all subrounds taken together, either Subsample-1 households /enterprises or Subsample-2 households /enterprises are to be considered at one time
For generating subsample-combined estimates based on data of all subrounds taken together, all households/ enterprises are to be considered.
Weights were determined using the following variables available in the data : NSS NSC MLT
weight = MLT/100, if NSS=NSC
= MLT/200 otherwise.
All records of a household /enterprise will have same weight figure.
For more information, see the README file in technical documents under external resources.
Survey instrument
Schedule 2.2 was designed for collection of data from the manufacturing enterprises. The schedule was organized into 15 blocks. The items of information collected through different blocks of the schedule included the following:
• Particulars of operation and background information of the enterprise
• Principal operating expenses
• Other operating expenses
• Principal receipts
• Other receipts
• Gross value added
• Employment particulars
• Compensation to workers
• Fixed assets owned and hired
• Loan outstanding
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. The reference period for recording details of various items depended primarily on whether the enterprise under survey could provide information from their books of accounts, or they could provide information orally. The different cases are discussed in detail in chapter 2 of the final report no.525
Data collection
| Start | End | Cycle |
|---|---|---|
| 2005-07-01 | 2005-09-30 | sub-round 1 |
| 2005-10-01 | 2005-12-31 | sub-round 2 |
| 2006-01-01 | 2006-03-31 | sub-round 3 |
| 2006-04-01 | 2006-06-30 | sub-round 4 |
| Name | Affiliation |
|---|---|
| Field Operations Division | NSSO |
The entire survey period was divided into four sub-rounds of three months each. In each of these sub-rounds, equal number of sample villages/urban blocks was allotted for survey with a view to ensuring uniform spread of fieldwork over the entire survey period. All efforts were made to complete the fieldwork in a sample village/block during the sub-round period to which it was allotted.
Data Access
| Name | Affiliation | URL |
|---|---|---|
| Director General & Chief Executive Officer | National Sample Survey Organisation | http://mospi.nic.in |
Use of the dataset must be acknowledged using a citation which would include:
- the Identification of the Primary Investigator
- the title of the survey (including country, acronym and year of implementation)
- the survey reference number
- the source and date of download
Disclaimer and copyrights
The user of the data acknowledges that the original collector of the data, the authorized distributor of the data, and the relevant funding agency bear no responsibility for use of the data or for interpretations or inferences based upon such uses.
Contacts
| Name | Affiliation | URL |
|---|---|---|
| Director General & Chief Executive Officer | National Sample Survey Organization | http://mospi.nic.in |
Metadata production
DDI_IND_2005_NSS62-SCH2.2_v01_M
| Name | Affiliation | Role |
|---|---|---|
| Development Economics Data Group | The World Bank | Documentation of the DDI |
2012-09-04
Metadata version
Version 01 (Sept 2012)