16 economic census karnataka

7/30/2019 16 Economic Census Karnataka

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ECONOMIC CENSUS INECONOMIC CENSUS INKARNATAKAKARNATAKA

DIRECTORATE OF ECONOMICS & STATISTICSDIRECTORATE OF ECONOMICS & STATISTICS

BANGALORE, KARNATAKABANGALORE, KARNATAKA


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INTRODUCTION

Reliable and timely data base is the basic necessity for any sound andsystematic planning. Moreover, the availability of detailed

information, preferably at Micro level is the key for effectiveplanning. Though a fairly adequate system of agricultural statisticshas already been developed in the country, such an informationsystem has not yet been built up for the Non-Agricultural Sector,especially in un-organized sector though it assumes greaterimportance due to its significant contribution towards Gross DomesticProduct and also in generation of employment in developing

economy. But this data relating to this segment which would facilitatefair assessment of its share in the National/State Income and also itsimpact on the growth of income and employment are either scarce or

not available at regular intervals.


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DEFINITION

The Economic Census (EC) is the official count of all

entrepreneurial units located within the geographical boundaries ofany country or a region & involved in any economic activity eitherin agriculture (excluding crop production and plantation) or in non-

agricultural sectors of the economy. The units should be engaged ineither production of goods or their distribution or in delivery ofservices or a combination of these, but not for the sole purpose ofown consumption.

OBJECTIVE

The important objectives and benefits of Economic Census

are It provides a fine, comprehensive sampling frame forundertaking large or small sample surveys on the status andactivities of establishments in the un-organized sector.

Bridges essential data gaps on all units of economic activity suchas their number, the type of ownership, the nature of theiroperations, the kind of power or fuel used etc.


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ADVANTAGES

The economic census furnishes an important part of the

framework for such composite measures as the gross domesticproduct estimates, input/output measures, production and priceindices and other statistical series that measure short-term

changes in economic conditions. Specific uses of economiccensus data include the following:

Policymaking agencies of the government may use the data

to monitor economic activity and to assess the effectivenessof policies.State, Central and local governments may use the data toassess business activities and tax bases within their

jurisdictions and to develop labor laws, base for commercialtax etc.Trade associations and Individual businessmen may use the

data to locate potential markets and to study market trends.


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DATA LIMITATIONS

1. The First economic Censuses conducted in 1977 included turnover (both production and value) particulars. In the SecondEconomic Census these items have been dropped. Reasons forthis may be explored to plug the data gaps and to be revived sinceit is very valuable information for multi-purposes. Hence, it isvital to correlate the census data with that of production results.


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DATA LIMITATIONS contd.

2. The term Private Non-Profit institutions shall be clearly defined.All the societies registered under societies Registration Act 1960should be covered and suitable space may be provided in the data

sheets. At present, institutions which are financed and controlled byhouseholds e.g: Dharmashala, Trust or Temple etc. are treated as Non-Profit Institutions (NPI). This definition does not cover the SportsInstitutions, Education Societies etc.

Economic Census 2005 gives about 55000 units of establishmentunder NPI, whereas NPI first phase survey has identified 192487

societies in Karnataka registered under Societies Registration Act 1960


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3. Less than 10 employees are employed in nearly 68% of theestablishments. Information regarding these institutions will be ofmuch value for analyzing their contribution in terms ofemployment, GSDP and formation of labor safety laws in un-organized sector. Name and address slips of the enterprises havingless than 10 employees may be collected and published and theDirectory of establishment with location details should be published

on the website providing dynamic mechanism and proper publicitymust be made to utilize the data by the public as like yellow pages.

4. The gap between the commencement of Economic Census and thepublication of its results should be minimized to 10 months. Sincedelay makes the statistics less useful. An experience and wellknown Agency to be entrusted with this task to get qualitative andtimely data.


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5. Once in five years, the list of Urban Frame Survey (UFS) blockshave to be updated by deleting the defunct enterprises. Unique ID tobe given to each enterprise based on category wise, location wise

and type of registration. This will help to track the status of theestablishment.

6. NGO s and enumerators to be trained in census operations.Intensive theoretical training combined with field demonstrationhasto be imparted.

7. Supply of information under economic census is purely voluntary andthere is no statutory sanction behind it. Despite wide publicitythrough mass media some degree of non-co-operation on the part of

informants is apprehended.


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DATA LIMITATIONS concld.

8. The method of collection of data under economic census is notrecord based information but only oral information provided by theinformants. In this method there is likelihood of under reporting ofemployment, unintended inaccuracy, recall lapse and casualapproach on the part of the informants to some extent.

9. The data analysis has to be carried-out to know the trends. Thus meredata entry software or table generating software need not suffice; as

such a methodology and software are to be developed to know thetrend of the different industries across the census has to bedeveloped.


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ANALYSIS OF ECONOMIC CENSUS IN KARNATAKA:Establishments, Employment Vs GSDP

Establishment and employment status with each activity and theirproportion to total in Economic Census 1989-90, 1997-98 and 2004-05 is compared with the GSDP of respective year to know whetherthat the variation in GSDP is in line with the variation in EconomicCensus. Following are the statistics on Establishments, Employment

and GSDP.

E t bli h t Fi i b k t i di t t f t l


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Establishment : Figures in brackets indicate percentage of sectoral

contribution to the total

Sl.No

Major ActivityGroup

No. ofestablishments

EC-1990

No. ofestablishmentsEC-

1998


EC-2005

%Variationover itsshare

1990-98


1998-2005

1AgriculturalActivities

208803(12.33)

259178(13.56)

390602(15.38)

24.13(9.98)

50.71(13.42)

2

Mining and

Quarrying

6024

(0.36)

4675

(0.25)

8634

(0.34)

-22.39

(-33.33)

84.68

(41.67)

3 Manufacturing306839(18.11)

388335(20.31)

635544(25.03)

26.56(12.15)

63.66(23.24)

4 Electricity, Gas &Water

2198(0.13)

727(0.04)

3466(0.14)

-66.92(-69.23)

376.75(250.00)

5 Construction19239(1.14)

16093(0.84)

18202(0.72)

-16.35(-26.32)

13.11(-14.29)

6Trade, Restaurantsand Hotels

638304(37.68)

728487(38.11)

920529(36.26)

17.72(-7.10)

49.98(-11.69)


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7Transport, Storage,Warehousing &Communications

36980(2.18)

42423(2.22)

88149(3.47)

14.72(1.83)

107.79(56.31)

8Financial, Insurance,Real Estate andBusiness Services

34111(2.01)

57970(3.03)

115348(4.54)

69.95(50.75)

98.98(49.83)

9Community, Socialand Personal servicesand other unspecifiedactivities

441400(26.06)

413743(21.64)

358400(14.12)

-6.27(-16.96)

-13.38(-34.75)

Non-Agricultural Activities 1485095(87.67)

1652453(86.44)

2148272(84.62)

11.27(-1.40)

30.01(-2.11)

Total Agricultural &

Non-Agricultural Activities

1693898

(100.00)

1911631

(100.00)

2538874

(100.00)

12.85

(0.00)

32.81

(0.00)Trade=Sales, Maintenance, Repairs + Wholesale Trade + Retail Trade

% Variationover itsshare

1998-2005

% Variationover itsshare

1990-98


EC-2005


EC-1998

No. ofestablishm

ents

EC-1990

Major Activity GroupSl.No


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Employment : Figures in brackets indicate percentage of sectoral

contribution to the total

Sl.No

Major Activity Group

Total No.of

Employ-ment

EC-1990

Total No.of

Employ-ment

EC-1998

Total No.of

Employ-ment

EC-2005


1990-98


1998-2005

1 Agricultural Activities674966(13.28)

722646(13.76)

813491(12.82)

7.06(3.61)

12.57(-6.83)

2 Mining and Quarrying 27573(0.54) 17805(0.34) 38951(0.61) -35.43(-37.04) 118.76(79.41)

3 Manufacturing1319827(25.96)

1336723(25.44)

1735429(27.35)

1.28(-2.00)

29.83(7.51)

4 Electricity, Gas &Water

13236(0.26)

5103(0.10)

23101(0.36)

-61.45(-61.54)

352.69(260.00)

5 Construction51608(1.02)

48641(0.93)

46438(0.73)

-5.75(-8.82)

-4.53(-21.51)

6Trade, Restaurants andHotels

1239194(24.37)

1481045(28.20)

1731270(27.28)

26.15(18.99)

31.98(-8.08)


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7Transport, Storage,Warehousing &

Communications

121905

(2.40)

122707

(2.34)

198461

(3.13)

0.66

(-2.50)

61.74

(33.76)

8Financial, Insurance,Real Estate and

Business Services

173069(3.40)

236333(4.50)

409910(6.46)

36.55(32.35)

73.45(43.56)

9

Community, Social andPersonal services and

other unspecifiedactivities

1461891

(28.76)

1282436

(24.41)

1348535

(21.25)

-12.28

-15.13)

5.15

(-12.95)

Non-Agricultural Activities4408303(86.72)

4530793(86.24)

5532095(87.18)

2.78(-0.55)

22.10(1.09)

Total Agricultural & Non-Agricultural Activities

5083269(100.00)

5253439(100.00)

6345586(100.00) 3.35 20.79

Trade=Sales, Maintenance, Repairs + Wholesale Trade + Retail Trade

%Variationover its

share1998-2005

%Variationover its

share1990-98

Total No.of

Employ-

mentEC-2005

Total No.of

Employ-

mentEC-1998

Total No.of

Employ-

mentEC-1990

Major Activity GroupSl.N

o

GSDP t f t t b i d t f i i At t i


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GSDP at factor cost by industry of origin At current prices

Figures in brackets indicate percentage of sectoral contribution to

the total

Sl.No

Industry 1989-90 1997-98 2004-05

%Variationof 1989-90

to 1997-98

%Variation

of 1997-98

to 2004-051 Agricultural

Activities697974(34.88)

2141563(29.32)

3015316(19.30)

206.83(-15.94)

40.80(-34.17)

2 Mining andQuarrying 14023(0.70) 60441(0.83) 190258(1.22) 331.01(18.57) 214.78(46.99)

3 Manufacturing 339998(16.99)

1337387(18.31)

2869685(18.37)

293.4(7.77)

114.57(0.33)

4 Electricity, Gas andWater supply

60712(3.03)

170563(2.34)

347698(2.23)

180.94(-22.77)

103.85(-4.70)

5 Construction 112278

(5.61)

455617

(6.24)

1021876

(6.54))

305.79

(11.23)

124.28

(4.81)6 Trade, Hotels and

Restaurants248029(12.39)

921074(12.41)

2214733(14.18)

271.36(0.16)

140.45(14.26)


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Here GSDP at current prices is considered, as all the three series of GSDP has different

base years, converting it to a common base year is not possible, since there is no linking factor.Hence by converting this into constant prices using Consumer Price Index of base year 1960-61as 100, it is observed that the activity wise proportion to it s total does not change.

7 Transport, Storageand Communication

118662(5.93)

431672(5.92)

1035293(6.63)

263.78(-0.17)

139.83(11.99)

8 Banking andInsurance, RealEstate, Ownership ofDwellings andBusiness services

211295(10.56)

909998(12.46)

3117010(19.95)

330.68(17.99)

242.53(60.16)

9 PublicAdministration andother services

198270(9.9)

876261(12.00)

1809851(11.58)

341.95(21.21)

106.54(-3.50)

Total GSDP 2001241 7304576 15621720 265 114

Sl.N

o

Industry 1989-90 1997-98 2004-05

%Variationof 1989-

90 to1997-98

%Variationof 1997-

98 to2004-05


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ANALYSIS OF ESTABLISHMENTS, EMPLOYMENT Vs GSDP

Agricultural Activities :The percentage of variation in employment in proportion tototal in this sector during 1997-98, compared to 1989-90 rosepositively by 3.61% but declined negatively by 6.83% during2004-05 compared to 1997-98. Its variation in its percentagecontribution to GSDP is -15.94% during 1997-98 compared to 1989-90 and -34.17% during 2004-05 compared to 1997-98. Whereas

value wise variation is positive.But it is paradoxical to note a rise in percentage variation in

number of establishments in proportion to total during the same

period by 9.98% and 13.42% respectively.In total its contribution to GSDP is in decreasing rates whereas

number of establishments are in increasing rate. Reason may be thatthese establishments are catering mostly to farmers who are in ruralarea.


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Manufacturing:

The percentage of variation in proportion to total in this

sector with respect to establishment during 1997-98 is 12.15%compared 1989-90 and 23.24% during 2004-05, compared to1998-99. The percentage of variation with respect toemployment in proportion to total during 1997-98 compared to1989-90, though negative at 2.00%, rose positively by 7.51%during 2004-05 compared to 1997-98 variation in it'scontribution to GSDP is 7.77% during 1997-98 compared to

1989-90 but reduced drastically to 0.33% during 2004-05compared to 1997-98.

It can be observed that though the number of

establishments has increased appreciably during three economiccensuses, the same trend is not noticed with respect toemployment and GSDP. Main reason may be that there is risein automation in industry and the other is increase in highlypaid technical professionals.


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Construction:

The percentage of variation in number of establishments in proportionto total is -26.32% during 1997-98 compared to 1989-90 and -14.29%during 2004-05 compared to 1997-98, and is on decreasing trend. In

contrast, the percentage of variation in employment in proportion tototal is negative from -8.82% during 1997-98 compared to 1989-90 and-21.51% during 2004-05 compared to 1989-90. This sector's percentage

of variation in it's GSDP contribution in proportion to total decreasedfrom 11.23% during 1997-98 compared to 1989-90 to 4.81% during2004-05 compared to 1997-98.

Trade, Hotels & Restaurants:

It's contribution to GSDP in proportion to total has increased by aminimum of 0.16% during 1997-98 compared to 1989-90 and

appreciably by 14.26% during 2004-05 compared to 1997-98.


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Trade, Hotels & Restaurants- concluded

The percentage of variation in number of establishments inproportion to total is -7.1% during 1997-98 compared to 1989-90and -11.69% during 2004-05 compared to 1997-98. The percentage

of variation in employment in proportion to total is 19% during1997-98 compared to 1989-90 and -8.08% during 2004-05 comparedto 1997-98.

Trade, Hotels and restaurants put together contribute 37.68%,38.11% and 36.26% to total establishments in 1989-90, 1997-98 and2004-05 respectively. It is 24.37%, 28.20% and 27.28% inemployment. In GSDP its contribution is only 12.39%, 12.41% and14.18% in 1989-90, 1997-98 and 2004-05 respectively.

Financial policy of the banks would have influenced thesesectors. Cut in interest rates, easy availability of loans are the

important factors influencing the increase rate.

i id i ll i


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STATISTICAL ANALYSIS: It is said in all Economic Censusesthat it contribute significantly to National Income/GSDP here an

attempt is made to statistically analyze the same by deriving thecorrelation coefficient.

(i) Correlation between Establishment and Employment

Year Value of (r)

1990 0.91

1998 0.95

2005 0.94

The Karl-Pearson correlation co-efficient (r) between the number ofestablishments and the number of employment in nearly perfect duringall the 3 censuses. Thus it proves that employment and establishments

are correlated to each other.

(ii) C l ti b t E t bli h t d GSDP


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(ii) Correlation between Establishment and GSDP

Year Value of (r)

1990 0.35

1998 0.48

2005 0.59

On the other hand there exists a weak correlation between the numberof establishments and the GSDP during earlier two censuses.

(iii) C l i b E l d GSDP


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(iii) Correlation between Employment and GSDP

Year Value of (r)

1990 0.44

1998 0.572005 0.64

There exists a good correlation between the number ofemployment and the GSDP during last two censuses.

The general opinion is that either employees or establishment ishighly correlated with GSDP as both are expected to influence thestate income, it is observed more so in employment.

Correlation Coefficient : Districts & EC-2005


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Sl.No

DistrictsNo. of

Establish

ments

No. ofEmployment

GSDP

1 Bagalkote 67613 155668 3381152 Bangalore U 295728 1247713 4583558

3 Bangalore R 114715 295518 586059

4 Belgaum 204610 442325 924390

5 Bellary 88699 211293 717745

6 Bidar 49807 101841 236662

7 Bijapur 56045 115723 312766

8 Chamrajnagar 42850 81482 166052

9 Chikmagalur 56930 136106 36841310 Chitradurga 72144 148822 287049

Correlation Coefficient : Districts & EC-2005

N f N f


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11 Dakshina Kannada 203334 352093 885484

12 Davangere 62239 124653 419287

13 Dharwad 61935 170895 427339

14 Gadag 44505 98872 197101

15 Gulbarga 91417 192101 599053

16 Hassan 88225 201449 342871

17 Haveri 54874 109617 280694

18 Kodagu 17178 42785 22880819 Kolar 138428 348056 510674

20 Koppal 40473 90013 283856

Sl.

NoDistricts

No. of

Establish

ments

No. of

Employm

ent

GSDP


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Sl.

NoDistricts

No. of

Establishm

ents

No. of

Employ

ment

GSDP

21 Mandya 104333 222001 341144

22 Mysore 165913 536982 757557

23 Raichur 53245 116015 281862

24 Shimoga 78381 210446 403565

25 Tumkur 141940 289934 48952626 Udupi 87018 174602 335515

27 Uttar Kannada 56295 128581 316573

Total 2538874 6345586 15621718


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Correlation Coefficient between Establishment

and Employment = 0.91

Correlation Coefficient between Establishment

and GSDP = 0.79

Correlation Coefficient between Employment

and GSDP = 0.94


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SUGGESTIONS FOR IMPROVEMENT:-

1. In future Economic Censuses, production and value of turn overare to be included.

2. A methodology may be developed based on taxation and

administrative data combined with sample survey to arrive atintermediate years statistics.3. The UFS block maps should be updated by the NSSO well-in-

advance before the commencement of field work.4. The 6th Economic Census should be planned in such a way that

the field work of population census and Economic Censusshould go simultaneously.

5. Information regarding name and address slips of the enterpriseshaving less than 10 employees has to be to collected andpublished since this segment constitutes 68% of the total

establishments.


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SUGGESTIONS FOR IMPROVEMENT:-concluded

6. Intensive training regarding concept and definitions, to identifythe respondents, activities and enterprises, has to be imparted to

the primary workers before they go for field work.7. A methodology and software has to be evolved to study the trend

of different industries across the censuses.

8. A reputed Agency should be entrusted for conducting EconomicCensus to get qualitative and timely data. So that the results ofthe Economic Census can be published within a year since itscommencement.

9. To estimate GSDP at block level, Economic Census data may beused as auxilary variable.


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THANK YOU

16 economic census karnataka

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