Discuss the significance of the Economic Census and a Statistical Business Register in capturing the contribution of the unorganised sector to India's GDP.
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The unorganised sector employs a large share of India's workforce, but its contribution to GDP is estimated, not counted. MoSPI works out the gross value added (GVA) of unincorporated firms by multiplying GVA per worker from ASUSE by the workforce figure from PLFS [2]. The 8th Economic Census (EC) and a National Statistical Business Register (SBR) come under the newly approved VISTAR scheme [1]. They are meant to fix the base on which this method rests.
Why the current estimate is weak
- Errors carry through: any error in output per worker or in the worker count goes straight into GDP [2].
- Outdated sampling frames: ASUSE results feed into National Accounts [3]. If its list of firms is old, new firms are missed and closed ones are still counted.
Significance of the Economic Census
- Complete count: it covers all non-farm establishments, including their hired workers, down to Gram Panchayat and Ward level [1].
- Fresh frame for surveys: an up-to-date list of firms makes ASUSE estimates more reliable, and so improves GVA per worker [3].
- Local detail: it supports District GDP and estimates for States and districts under SSS 2.0, which helps decentralised planning [1].
Significance of the Statistical Business Register
- A register kept current: it is built on the EC baseline [1] and can be updated between census rounds, so the frame does not go out of date.
- Data linkage: VISTAR plans interoperable, harmonised and machine-readable datasets [1]. These can let administrative records add to survey data.
- Frequent tracking: it makes the proposed Index of Unincorporated Sector Enterprises possible [1]. The informal sector could then be tracked through the year, not only once every few years.
- Formalisation visible: a single register can show firms moving from informal to formal status.
Limitations
- The EC leaves out farm activity, so informal work in agriculture still needs other sources [1].
- Each change of method creates a break in the series. Old and new estimates must be run side by side and linked.
Together, the EC and the SBR shift measurement of the unorganised sector from guesswork to a firm base: a complete count backed by a register that stays current. Their value depends on regular census rounds, good-quality updates and transparent methods. These are the kind of independent, credible statistics the Rangarajan Commission asked for, and they serve SDG 17.18 on stronger statistical capacity. With these in place, India's growth story for Viksit Bharat 2047 can rest on solid data.
Sources
- 1Cabinet approves 'Viksit Bharat Initiative for Statistical Transformation, Analytics & Research (VISTAR)' — PIB, 04 Nov 20268th EC scope, SBR built on the EC baseline, Index of Unincorporated Sector Enterprises, SSS 2.0/District GDP, data harmonisation
- 2Sources and Methods for Compilation of National Accounts Statistics — MoSPIunincorporated-sector GVA = ASUSE GVA per worker × PLFS workforce
- 3Press Note on Annual Survey of Unincorporated Sector Enterprises (ASUSE) — MoSPI, June 2024ASUSE results used in compiling National Accounts Statistics