Informal sector manufacturing 15% of overall output: NSSO

NEW DELHI: Manufacturing in the informal sector accounted for almost 15% of the overall manufacturing output of the economy, according to the latest survey on the informal economy by the National Sample Survey Organisation (NSSO).

The NSSO, under the Ministry of Statistics and Programme Implementation, released key results of its 67th round survey on the unincorporated non-agricultural enterprises (excluding construction) for the year 2010-11.

India’s informal service sector accounted for almost 5.8% of the total services sector, while manufacturing in the informal sector accounted for 14.87% of the total manufacturing according to the survey.

This survey covered 5.77 crore units out of which 54% were located in the rural areas while 46% were in the urban areas. The economic units were further divided into Own Account Enterprises (OAEs) and Establishments.

OAEs outnumbered establishments at the all India level by a huge margin accounting for 85% of total enterprises. Their share under the three broad activity categories of manufacturing, trade and other services were at 84%,86% and 84% respectively.

The NSS 67th round is the exclusive enterprise survey covering unincorporated non-agricultural enterprises (manufacturing, trade and other services, excluding construction).

NSS enterprise surveys in the past have also covered unorganised non-agricultural enterprises, covering manufacturing, services and trade. About 90% of the Indian economy still comes under the ambit of informal economy and consequently a number of details are unknown.

The main aim of this latest survey is to address the issue of data availability and estimate the total number of enterprises, number of workers, gross value added per worker, fixed capital per enterprise, gross fixed capital formation (GFCF) per enterprise, outstanding loan per enterprise, capital productivity (GVA/Fixed Capital) and other Operational/economic characteristics of enterprises.