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Delay in 7th Economic Census Report
Context:
The 7th Economic Census (2019) has faced significant delays, leading to concerns over resource utilisation. The Parliamentary Standing Committee on Finance has urged the Ministry of Statistics and Programme Implementation (MOSPI) to release interim data. It emphasised the need for greater state/UT involvement to improve efficiency and accountability.
Parliamentary Panel’s Recommendations
- Release interim data to ensure some utility from collected information.
- Enhance state/UT engagement in future Economic Censuses.
About Economic Census
- The Economic Census is a comprehensive statistical exercise that provides data on economic establishments, workforce distribution, and sectoral growth.
- It helps in policy formulation and planning at the national, state, and district levels.
- The 7th Economic Census (2019) faced multiple challenges, leading to delays in data finalization.
- The Parliamentary Standing Committee on Finance has recommended the release of interim data to derive useful insights.
Economic Census Significance
- It provides disaggregated data on economic activities, ownership patterns, and employment trends.
- Helps in monitoring economic growth, structural changes, and sectoral contributions.
- Acts as a crucial input for GDP estimation, business policy, and investment decisions.
- Ensure accountability to avoid financial mismanagement in large-scale data exercises.
Reasons for delay in releasing 7th Economic Census: Challenges Faced
- Prolonged Timeline and COVID-19 Disruptions
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- Fieldwork started in 2019 but was delayed due to COVID-19 restrictions.
- Obsolete data due to extended collection period, impacting relevance.
- State-Level Discrepancies
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- West Bengal did not participate despite repeated communications.
- 12 states/UTs have not approved provisional results (as of December 2023).
- 10 states/UTs yet to provide approval, delaying nationwide finalization.
- Financial Concerns
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- Total expenditure: ₹913 crore; ₹691.04 crore utilized.
- Lack of finalized data despite significant expenditure raises concerns over resource wastage.
- Issues with Third-Party Data Collection Model
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- Data collection was outsourced to third-party agencies, reducing state/UT involvement.
- The model failed to function effectively, leading to disruptions and verification issues.
Recommended Measures for the 8th Economic Census
- Strengthening State/UT Involvement: States/UTs will have complete ownership in hiring enumerators and supervisors.
- Extended Data Collection Period
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- The fieldwork timeline will be extended from 3 months (7th Census) to 9 months (8th Census).
- Will allow better coverage and verification.
- Improved Data Collection Methodology
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- Use of digital platforms for faster data processing and analysis.
- Hybrid model of data collection involving both government and private agencies.
Key Findings of the 6th Economic Census (2013-14)
Overall Establishments and Growth
- Total establishments: 58.5 million (41.79% growth from the 5th Economic Census in 2005).
- Rural establishments: 34.8 million (59.48%).
- Urban establishments: 23.7 million (40.52%).
- Non-agricultural establishments: 77.6% of total establishments.
- Agricultural establishments: 22.4%, with livestock as the dominant sector (86.74%).
Employment Data
- Total workforce: 131.29 million (38.13% growth since 2005).
- Male workers: 98.25 million (74.83%); Female workers: 33.04 million (25.17%).
- Government and PSU employment: 7.2%; Private sector employment: 78.5%.
- Manufacturing sector: Largest employer (23.1%) followed by retail trade (20.7%).
Ownership and Structural Characteristics
- Proprietary establishments: 89.39% (15.4% owned by women).
- Home-based establishments: 36.19%.
- Perennial establishments: 93%.
- Seasonal establishments: 5.9%.
Women Entrepreneurship
- Total women-owned establishments: 8.05 million (13.76%).
- Employment generated: 13.45 million workers.
- Majority of women entrepreneurs: Tamil Nadu, Kerala, Andhra Pradesh, West Bengal, Maharashtra.
- Key sectors: Livestock, manufacturing, retail trade.
Conclusion
- The 7th Economic Census has faced significant delays and operational inefficiencies, raising concerns about data reliability and resource utilization.
- To improve future Economic Censuses, stronger state participation, enhanced methodologies, and timely data release are essential.
- Implementing the Parliamentary Panel’s recommendations will help streamline processes and ensure effective data-driven policy-making in India.
