Generated Summary
The document is a chapter from a report discussing the findings of the Sixth Economic Census in India, focusing on non-agricultural establishments. It provides a comprehensive overview of these establishments, their coverage, and key characteristics, with data presented for the entire country. The chapter analyzes various aspects such as establishments by type, employment distribution, nature of operation, and ownership types, with a breakdown across rural and urban sectors. It also includes a comparison of non-agricultural establishments across different states and union territories, offering insights into regional variations in economic activities. The methodology involves the collection and analysis of statistical data from the Sixth Economic Census, presenting the findings through tables and descriptive text. The scope encompasses a wide range of non-agricultural activities, offering valuable data on establishments and employment in these sectors.
Key Findings & Statistics
- Total Establishments: There were 45.36 million non-agricultural establishments in the country.
- Ownership: Out of these, 30.13 million (66.43%) were own account establishments, and 15.23 million (33.57%) were establishments with at least one hired worker.
- Rural vs. Urban: In rural areas, 22.71 million non-agricultural establishments were located, with 16.61 million being own account establishments and 6.10 million having at least one hired worker. In urban areas, 22.65 million non-agricultural establishments were located, with 13.53 million being own account establishments and 9.13 million having at least one hired worker.
- Location of Own Account Establishments: Out of 30.13 million own account establishments, 16.61 million (55.12%) were in rural areas, and 13.53 million (44.88%) were in urban areas.
- Employment: About 108.41 million persons worked in non-agricultural establishments. Of these, 39.27 million persons (36.22%) were employed in own account establishments, and 69.14 million (63.78%) were in establishments with at least one hired worker.
- Employment Distribution: 46.84 million (43.20%) of the total employment in the non-agricultural sector was in rural areas, and 61.57 million (56.80%) in urban areas.
- Hired Workers: There were 54.74 million hired workers, constituting 50.49% of total workers in the non-agricultural sector, with 37.52% of them found in rural areas.
- Female Workers: Female workers numbered 24.15 million, constituting 22.28% of total employment, with about 50.6% in rural areas.
- Employment Rate by Sector: The average employment in non-agricultural establishments was 2.39 persons, higher in urban areas (2.72) than in rural areas (2.10). Own account establishments had an average employment of 1.30 persons, and those with at least one hired worker had 4.54 persons.
- Activity Group Statistics: In the activity group ‘retail trade’, the activity group had the largest share with 41.21% in urban areas, with the second position held by ‘manufacturing’ at 20.96% in urban areas.
- Ownership: 2.06 million establishments (4.53%) were under Government ownership, 39.44 million (86.94%) under private proprietorship. The majority of establishments were under ‘private proprietorship’ (83.66% in rural and 90.22% in urban).
- Employment in Non-Agricultural Establishments: The maximum number of workers were found in the ‘manufacturing’ with 30.36 million workers (28.00%) followed by ‘retail trade’ with 27.19 million workers (25.08%) and ‘education’ with 10.60 million workers (9.77%).
- Education Employment: The activity ‘education’ came out in third position as far as its percentage share is concerned, with 11.04% share and numbering 1.68 million.
- Employment Rate: The rate of employment in own account establishments was 1.30 persons, uniform in rural and urban areas.
- Employment Rate in Major Activity Groups: Employment rate was found to be the least (1.10) in activity group ‘transportation and storage (including postal and courier activities)’.
- Establishments by Size Class: Indian non-agricultural establishments have their employment in the range 1-5 for about 94.60% of the establishments, with total establishments employing less than 10 workers at about 98.34%.
Other Important Findings
- Non-agricultural establishments by major activity groups: ‘Retail trade’ accounted for 39.84% of the total in own-account establishments, followed by ‘manufacturing’ (23.96%) and ‘other service activities’ (9.06%).
- Urban area activity groups: The activity group ‘retail trade’ had the largest share (41.21%), followed by ‘manufacturing’ (20.96%), and ‘other service activities’ (8.72%).
- Establishments with at least one hired worker: ‘Retail trade’, ‘manufacturing’, and ‘education’ were the three most significant major activities, sharing 58.12% of the total.
- Rural Area Analysis: In the rural areas, ‘education’ accounted for 21.51% of the total number of establishments having at least one hired worker, followed by ‘retail trade’ and ‘manufacturing’ with share of 19.26% and 17.36%.
- Urban Area Analysis: In urban areas, ‘retail trade’ (31.59%) was the top, followed by ‘manufacturing’ (22.48%).
- Employment Rate Analysis: In the ‘financial & insurance activities’ the employment rate (1.96) was found the most, followed by ‘arts, entertainment, sports & amusement and recreation’ (1.63) and ‘mining and quarrying’ (1.52).
- Average Employment per Establishment: The average employment in non-agricultural establishments with at least one hired worker was 4.54.
- Ownership Distribution: Majority of the establishments were under ‘private proprietorship’ (83.66% in rural and 90.22% in urban).
- Establishments and Employment by Sex of Owner: Proprietary non-agricultural establishments under male, female and other ownership were 34.03 million (86.28%), 5.29 million (13.41%) and 0.01 million (0.31%), respectively.
- Ownership by Social Group: ‘Others’ (45.2%) had the most proprietary non-agricultural establishments, with an employment share of 50.8%.
- Religion of Owners: Hindus owned 71.50% of the proprietary non-agricultural establishments, with a workforce of 70.85%. Muslims owned 16.10% of establishments with 14.71% employment.
- Nature of Operation: Majority (95.2%) of establishments were perennial.
- Premises Status: About 54.64% of establishments operated from outside households with fixed structures.
- Source of Finance: 78.2% of non-agricultural establishments were self-financed.
Limitations Noted in the Document
- Methodological Limitations: The document’s reliance on the Sixth Economic Census data may be subject to the limitations inherent in the census methodology, including potential underreporting or inaccuracies in data collection.
- Data Constraints: The study is limited by the scope and detail of the data collected in the census, potentially missing granular insights into specific sectors or activities.
- Generalizability: The findings reflect the situation at the time of the Sixth Economic Census. Changes in the economic landscape, technological advancements, or policy shifts since the census were conducted may impact the current relevance of these findings.
- Data accuracy: There are limitations of the information and assumptions the authors had to work with.
Conclusion
The analysis of the Sixth Economic Census reveals significant patterns in the structure and employment of non-agricultural establishments across India. The dominance of ‘retail trade’ and ‘manufacturing’ in terms of establishments and employment highlights their crucial role in the Indian economy. The prevalence of ‘private proprietorship’ across both rural and urban sectors underscores the importance of small and medium-sized enterprises. The data emphasizes that the majority of establishments operate on a perennial basis and are self-financed, which informs policy decisions and economic planning. The findings on the distribution of establishments by social group and religion provide insights into the socioeconomic dynamics of the Indian economy, highlighting regional variations in economic activities. The study of premises status, with the majority of establishments operating from outside households, has significant implications for urban planning and infrastructure development. The analysis also provides valuable data to better understand employment rates in various sectors. Policy makers should prioritize interventions to aid sectors such as retail and manufacturing, support small businesses, improve infrastructure, and address regional economic disparities, based on the analysis presented.