Millennium Post

Unincorporated units add ₹11.5 lakh cr to economy

As many as 6.34 crore unincorporated non-agriculture enterprises excluding construction sector, have contributed Rs 11.52 lakh crore to the economy and provided employment to 11.13 crore in 2015-16.

"During 2015-16, the aggregate gross value added (GVA)by the unincorporated non-agricultural enterprises (excluding construction) engaged in market production was estimated as Rs 11,52,338 crore," stated a report by National Sample Survey Organisation.

According to the report, at all India level, units that employ at least one hired worker on a fairly regular basis contributed about 56 per cent to the aggregate annual GVA.

However, in rural areas, OAEs (own account enterprises) had a higher share (61 per cent) in aggregate GVA.

The survey revealed that about 11.13 crore workers were engaged in unincorporated non-agricultural enterprises (excluding construction) during 2015-16.

Out of the total number of workers, 34.8 per cent were engaged in trading, 32.8 per cent in other services and 32.4 per cent in manufacturing. While 55 per cent worked in urban areas, 45 per cent worked in rural areas.

The top five states in terms of estimated number of workers are Uttar Pradesh (14.9 per cent), West Bengal (12.2 per cent), Tamil Nadu (8.7 per cent), Maharashtra (8.2 per cent) and Karnataka (6.4 per cent).

They accounted for nearly 50 per cent of the total number of workers engaged in the sector. Of the 6.34 crore enterprises, 31 per cent were engaged in manufacturing, 36.3 per cent in trading and 32.6 per cent in other services sector.

The number of enterprises engaged in 'non-captive electricity generation and transmission' was negligibly low.

About 51 per cent of such enterprises were located in rural areas and 49 per cent were in urban areas.

The Own Account Enterprises (OAEs) have a dominant share of 84.2 per cent.

The share of OAEs in manufacturing stood at 85.5 per cent, trade (84.5 per cent) and other services (82.5 per cent).

Uttar Pradesh reported the highest share (14.20 per cent) of such enterprises followed by West Bengal (13.99 per cent), Tamil Nadu (7.80 per cent), Maharashtra (7.54 per cent) and Karnataka (6.05 per cent).

These states accounted for nearly half of the total unincorporated non-agricultural enterprises in the country.

Proprietary enterprises (i.e. enterprises wholly owned by a single individual) had the highest share (96 per cent).

Partnership enterprises had a share of 2 per cent and Self Help Groups (SHGs) accounted for 1.8 per cent. Trusts and others had only a negligible presence of 0.1 per cent each.

Nearly one-fifth of the enterprises were female-headed proprietary enterprises.

Average annual emolument per hired worker was estimated at Rs 87,544. The average emolument per hired worker was highest for enterprises in 'other services' (Rs 1,01,094) followed by trade (Rs 80,267) and manufacturing (Rs 75,595).

Kerala and Assam reported the highest and lowest value of average annual emolument per hired worker at Rs 1,25,616 and Rs 53,726 respectively.

The report titled "Key Indicators of Unincorporated Non- Agricultural Enterprises (Excluding Construction) in India" is based on the information collected under 73rd round of survey conducted during July 2015 to June 2016 as a follow-up survey of the 6th Economic Census.

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