Evaluate the adequacy of statistical surveys like ASUSE in capturing the dynamism of India's informal economy.

Q. Evaluate the adequacy of statistical surveys like ASUSE in capturing the dynamism of India's informal economy. (15 marks, 250 words)

The Annual Survey of Unincorporated Sector Enterprises (ASUSE), run by NSSO under MoSPI, is India's principal instrument for measuring the informal, non-agricultural economy — 7.92 crore establishments employing ~12.81 crore workers [1]. Its adequacy in capturing a fast-mutating sector merits a balanced verdict.

Strengths - Annual, high-frequency coverage replaced the quinquennial NSS enterprise rounds (last 2015-16), enabling timely reading of trends — establishments up 7.97%, GVA up 10.87% in 2025 [1][2]. - Digital-first collection via CAPI on tablets across >6.5 lakh establishments improves accuracy and speed [2]. - Captures emerging dynamism: >50% of traders using the internet, and female-headed proprietary units rising to ~27%, feeding gender and digital-adoption narratives [1][2]. - Feeds GDP/GVA back-series and MSME databases, aligning reference period to the calendar year for global comparability [1].

Limitations - Coverage gaps: excludes agriculture, LLPs and — until recently — construction, understating the true informal base [2]. - Establishment-based sampling misses footloose, home-based and platform-gig work, precisely the most dynamic informal segment. - Snapshot design lags churn — births/deaths of micro-units within the year — and depends on respondent recall for unregistered units. - Weak dovetailing with e-Shram, Udyam and PLFS limits a unified informal-economy picture.

Overall, ASUSE is a substantial advance — frequent, digital and policy-linked — yet not fully adequate to a shape-shifting informal economy. Integrating it with e-Shram and PLFS, and extending scope to gig and construction work, would make it a truer mirror of India's informal dynamism.

(~250 words)

Sources: 1. PIB — 7.92 crore unincorporated non-agricultural establishments driving economic expansion (PRID 2258362) — establishment/worker counts, growth rates, digital and female-participation data, calendar-year reference 2. MoSPI — Press Note on ASUSE 2025 — CAPI method, >6.5 lakh sample, sector scope/exclusions, GVA growth, female-headed share