Small Trading Units in India and Their Basic Characteristics : 1997 (Volume II)

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1 Report No. 444 (53/2.41.2/1) Small Trading Units in India and Their Basic Characteristics : 1997 (Volume II) NSS 53 rd Round January - December 1997 National Sample Survey Organisation Department of Statistics Government of India December 1998

2 P R E F A C E The National Sample Survey Organisation (NSSO) conducted a sample survey of the small trading units in India in its Fifty-third round during January - December The survey used the list of enterprises and establishments in the unorganised trade sector obtained from the Economics Census 1990 as the basic frame for selection of samples. the 53 rd round of NSS covered own account trading enterprises and non-directory trading establishments which were earlier taken up for survey by NSSO in its 41 st ( ) & 46 th ( ) rounds. Results obtained from this enquiry are being presented in the form of two detailed reports. The present report is the first in the series. It contains information on number of unorganised trading enterprises, persons employed therein, value added and trade margins for different commodity groups traded by those enterprises. Tables containing detailed results for state as well as the country are appended with this report. While the field work of the survey was done by the Field Operation Division of the NSSO, accumulated data were processed and tabulated by the Data Processing Division of the NSSO, Calcutta. The report at its draft stage was examined by the Governing Council members and officers of the Department of Statistics. Suggestions and various comments received were very helpful in improving the report. I am grateful to everyone. I also wish to put on record my appreciation for the team of SDRD officers for planning and designing the survey, undertaking analysis of the tabulated data, preparing the draft report and then revising it based on the comments received. I hope the report will serve as a reference document to the planners and the policy makers. Comments / suggestions for further improvement will be most welcome. Sd /- ( Dr. N. S. Sastry ) Director General and Chief Executives Officer National Sample Survey Organisation

3 Small Trading Units in India and Their Basic Characteristics: 1997 NSS 53 rd Round Contents CHAPTER TITLE PAGE NO. Chapter I Introduction 1 3 Chapter II Concepts and Definitions 4 6 Chapter III Summary of Findings 7 35 A Detailed Tables B Sample Design and Estimation Procedure C 4-digited NIC Codes A1 A219 B1 B4 C1 C9

4 HIGHLIGHTS Total number of small trading enterprises in the country during 1997 was estimated to be 145 lakh. Of these units 92% were own-account enterprises and the remaining 8% were non-directory establishments. About 84 lakh enterprises were located in the rural areas and 61 lakh in the urban areas. About 6% of the enterprises were wholesale trading units and 82% were retail trading units. The remaining 12% enterprises comprised the other trading units (commission agents, auctioneers and free collection categories). The State of Uttar Pradesh had the highest number of enterprises, followed by West Bengal, Bihar, Andhra Pradesh, Orissa and Maharashtra. These six states together accounted for more than 61% of the total trading units. About 90% of the rural enterprises and 98% of the urban enterprises were found to be perennial enterprises. 9.3% of the rural enterprises and 1.5% of the urban enterprises were seasonal in nature. Casual enterprises were almost non-existent in both rural (0.9%) and urban (0.3%) sectors. Orissa showed significant percentage (36.8%) of seasonal enterprises in the rural sector. About 94% of the rural enterprises and 86% of the urban enterprises were observed not to have maintained accounts. Among the wholesale trading units, 18% in the rural sector and 34% in the urban sector maintained accounts. At the all-india level, it is seen that 7.6% of the household enterprises were owned by Scheduled Tribes, 10.7% by Scheduled Castes and 21.4% by Other Backward Castes. The remaining 60.2% of the trading units were owned by Others. The estimated number of workers engaged in small trading units in India during 1997 was 222 lakh, of which lakh were in the rural sector and lakh in the urban sector. Among the States, Uttar Pradesh had the highest number of workers, followed by West Bengal, Andhra Pradesh, Maharashtra, Orissa and Bihar. These six states together covered more than 60% of the total number of workers. Average number of workers per enterprise in the small trading sector was There were 2.77 persons employed in an NDTE and 1.41 persons in an OATE.

5 About 30 lakh female workers and 6 lakh child workers were engaged in the small trading units during Participation of female or child workers in unorganised trade was more prevalent in the rural areas. The rural enterprises operated for 10.5 months on the average whereas, the urban enterprises operated for 11.2 months in the last 365 days. Per enterprise value of net additions to fixed assets in small trading units was found to be Rs This was Rs.1074 for owned assets. Per enterprise value of fixed assets owned and rented were found to be Rs and Rs 22458, respectively. In the rural sector, per enterprise value of assets owned were found to be much more than the assets rented. But in the urban sector, rented assets per enterprise were marginally higher than the owned assets. The small trading units generated monthly value added of about Rs 3927 crore of which the rural and urban share were 37% and 63%, respectively. In terms of percentage gross value added, Uttar Pradesh (13.8%), Maharashtra (10.5%), West Bengal (9.5%), Andhra Pradesh (7.9%) and Tamil Nadu (7.5%) were the five states in the lead. The GVA per enterprise for the country was observed to be Rs The same was found to be Rs 3595, if calculated by factor income approach. The annual value added by this sector was estimated to be Rs 44,220 crore of which the urban and rural shares were Rs 28,492 crore and Rs 15,727 crore, respectively. ***************

6 Small Trading Units In India : 1997 CHAPTER - I INTRODUCTION 1.1 As a follow-up survey of the Third Economic Census which was conducted in the year 1990, National Sample Survey Organisation conducted a survey on small trading units in its 53rd round. The objective of the survey was to throw up estimates of some important characteistics like number of enterprises, number of workers, value added and trade margins of commodities sold by the enterprises on the basis of the samples selected. In the first report of the series, the estimates have been presented in the form of 12 tables for all-india as well as States. The present report provides the results of the survey in another set of 12 tables for States as well as all-india. 1.2 The coverage of the fifty-third round of the NSS was restricted to all non-directory trading establishments(ndtes) and own account trading enterprises (OATEs) except the public sector trading enterprises/establishments. The term 'enterprise' has been used in the report in a generalised sense and will mean trading enterprises as well as establishments. All the enterprises covered by the two-digit codes (called divisions) 60 to 68 and three-digit codes (called groups) 040, 052, 053, 054, 059, 060, 061, 063, 069 and 890 under the revised National Industrial Classification, 1987 (NIC, 1987) were considered for this survey. Strictly speaking, the activity codes 040,052,..,069, which represent various free collection activities for sale, should be covered under agriculture. But value added for such activities are not regularly available from official sources. As such, they are being covered under unorganised trade since the NSS 34 th round. The relevant extract of the NIC, 1987 for trading activities is provided in APPENDIX C. In its geographical coverage, the fifty-third round survey covered the whole of the Indian Union except Ladakh and Kargil districts of Jammu & Kashmir, 768 interior villages of Nagaland situated beyond five kilometers of the bus route and 195 inaccessible villages of Andaman & Nicobar Islands. Villages with population more than 20,000 were also kept outside the coverage of the survey. 1.3 All the States and Union Territories except Andaman & Nicobar Islands, Dadra & Nagar Haveli and Lakshadweep participated at least on an equal matching basis. The number of firststage units (villages in the rural areas and UFS blocks in the urban areas) surveyed were 5988 and 7138 in rural and urban areas, respectively in the central sample. Under the State sample, 6530 villages and 8346 blocks were surveyed. In this round, instead of resorting to hamlet group or sub-block formation, the whole fsu s were listed. The distribution of first-stage units in different States for the Central sample was as given in Statement 1. 1

7 Small Trading Units In India : 1997 Statement 1 : Number of first-stage units allotted to different States and UT's for Central sample in NSS fifty-third round number of sample number of sample state/u.t States/u.t villages blocks villages blocks (1) (2) (3) (4) (5) (6) Andhra Pradesh Arunachal Pradesh Assam Goa Bihar Gujarat Haryana Jammu & Kashmir Himachal Pradesh Karnataka Kerala Maharashtra Madhya Pradesh Manipur Meghalaya Nagaland Mizoram Orissa Punjab Sikkim Rajasthan Tamil Nadu Tripura West Bengal Uttar Pradesh A. & N. Islands Chandigarh Daman & Diu D. & N. Haveli Delhi Lakshadweep 8 8 Pondicherry All - India As already mentioned, enterprises were selected in this round from three enterprise classes. The main characteristics on which information were collected are fixed assets, employment, purchase and sale values, other expenditure, other receipts, value added and trade margin of the traded goods. Reference period for collection of data was 'month' except for fixed assets and trade margin, where the reference period used was 'last one year'. An attempt has also been made to tabulate the average time taken to fill up the schedule and also the number of visits required to collect the information from the traders. The estimates are presented by broad industry divisions and/or groups (2- and/or 3-digit levels ) of the NIC,1987. In some of the tables, estimates are presented separately for different types of trade, viz. wholesale trade (NIC 60 to 63), retail trade (NIC 65 to 68), commission agents (NIC 64), auctioneers (NIC 890) and other trading units(nic 040, 052, 053, 054, 059, 060, 061, 063 & 069). 2

8 Small Trading Units In India : In the first report of the series, 12 tables were presented providing the information on number of enterprises, number of workers, gross value added, trade margins for different commodity groups and percentage distribution of enterprises by certain characters. In this report, along with the three variables, viz. number of enterprises, number of workers and GVA, some other important variables like fixed assets, net addition to fixed assets, other expenditure and various factor incomes have been presented for the States as well as for all-india. Average number of months the enterprise operated and the average number of days it operated in the working month are also given. The trade margins presented in the first report were obtained in the schedule as direct query from the traders. But the trade margins in this report are derived from the schedule where purchase and sale took place during the reference month. Some amount of difference is, therefore, expected between the two sets of data. But the table giving the distribution of sample enterprises by trade margins was generated on the basis of the observed trade margins only. 1.6 Important concepts and definitions adopted in the survey are explained in Chapter II. Major findings based on the data are discussed in a summarised form in Chapter III. The detailed tables at the All-India as well as the State level are given in APPENDIX A. APPENDIX B gives a note on sample design and estimation procedure followed in arriving at the estimates presented in this report. Industry division/group codes and the corresponding descriptions are given in APPENDIX C. ******* 3

9 Small Trading Units In India : 1997 CHAPTER II CONCEPTS AND DEFINITIONS Important concepts and definitions followed in the survey of NSS 53rd round are explained below : 2.1 Trade : Trading is defined as an act of purchase of goods and their disposal by way of sale without any intermediate physical transformation of goods. The activities of intermediaries who do not actually purchase or sell the goods but arrange their purchase and sale and thereby earn remuneration by way of brokerage or commission, are also covered for the purpose of `trade` survey. Distributive agencies which undertake trading activity on commission basis are also included. In addition, the activities of free collection for sale of honey and forest products like gathering of fodder, grass, etc.; free hunting, trapping and game propagation for commercial purposes; free collection for sale of fish, prawns, crabs and oysters; free collection for sale of waste paper, ash, rags, coal, etc., are also treated as trade for this survey. Separate and distinct trading units of manufacturing concerns like sale shops of Delhi Cotton Mill, Bombay Dyeing, Bata Shoe, etc., and activities like selling of fruit juice, sugarcane juice, etc. which involve a process of transformation marginally are also covered under trade. 2.2 Wholesale trade: In wholesale trade, goods are generally bought from the producer and sold to the retailer. A wholesaler is generally regarded as an intermediary between the producer and the retailer. A wholesale trader sometimes sells goods to other wholesalers or to the users in bulk. Besides, wholesale business is undertaken not only by the merchant wholesalers who buy and sell commodities, but also by the manufacturing wholesalers who maintain distinct and identifiable wholesale trade outlets. 2.3 Retail trade : In retail trade, goods are generally bought from wholesalers or dealers and sold to consumers. The retail trader is an intermediary between a wholesaler and the consumers or users. The retail trader may sometimes purchase goods directly from the producer or manufacturer. Hawkers and peddlers selling goods are considered to be retail traders. 2.4 Trading enterprise: A trading enterprise is an undertaking/unit engaged in trade. An enterprise may be owned and operated by a household or by an institutional body. The activities of the enterprise may be carried on by household members and/or by hiring outside labour. 2.5 Household enterprise: A household enterprise is an enterprise which is run by the members of the household. An enterprise run by two or more households on partnership basis is also considered a household enterprise. In other words, all proprietary and partnership enterprises are household enterprises. 2.6 Non-household enterprise: Non-household enterprises are those which are institutional, i.e. owned and run by the public sector (governments, local self-governments, local bodies, government undertakings,, etc.), the corporate sector, cooperative societies, other types of societies, institutions, associations, trusts,, etc. In unorganised trade, however, public sector enterprises are not covered. 4

10 Small Trading Units In India : Own-account enterprise: An enterprise which is run by household workers only (i.e. without any hired worker on a fairly regular basis ) is termed as an own-account enterprise. If such an enterprise is engaged in trading, it is termed as an own-account trading enterprise (OATE). 2.8 Establishment: An enterprise which is employing at least one hired worker on a fairly regular basis is termed as an establishment. 2.9 Non-directory establishment : An establishment employing fewer than six workers (household and hired workers taken together) is termed as a non-directory establishment. If such an establishment is engaged in trading activities, it is termed as a non-directory trading establishment (NDTE) Worker : A worker is defined as one who is engaged, either full time or part time, in the activity of the enterprise, in any capacity - supervisory or primary - in return for wages/salaries or not, involving any kind of work incidental to or connected with the (trading) activity. The entire set of workers has been divided into two categories, viz. hired workers and other workers, the main distinction being that while the former category of workers is paid some wages or salaries, the latter category of workers is not paid wages /salaries. For instance, a working proprietor or a working family member is treated as a hired worker if he/she gets remuneration for the work in an explicit form, but any receipt other than remuneration is not considered salary or wage and in that case the working proprietor or working family member is categorised as other worker Fairly regular basis : The term fairly regular basis for employment of hired workers means that the enterprise/establishment has engaged hired worker(s) during the major part of its period of operation(s) in the last one year. However, it is not necessary that the same worker(s) should be employed throughout the year Duration of operation of enterprise: It indicates the regularity with which the enterprise is run. If an enterprise runs more or less regularly throughout the year, it is a perennial enterprise. If an enterprise usually operates during a particular season or fixed months of a year, it is termed as a seasonal enterprise. In case the activities of an enterprise are neither perennial nor seasonal in nature but are undertaken occasionally during the reference year, the enterprise is termed as a casual enterprise Reference period : It means the period for which information on a particular characteristic is collected. In the NSS 53rd round only one reference period, viz. 'month' was used to collect the data. However, data on trade margins and net additions to fixed assets were collected for the last one year Fixed assets : Fixed assets in connection with the enterprise will mean (i) building (including land) and other construction, (ii) transport equipment and (iii) other fixed assets (new or used ) that have a normal economic life of more than one year from the date of acquisition/construction. The market values of the fixed assets have been considered. 5

11 Small Trading Units In India : Trade Margin :Trade Margin of a commodity is the percentage gain in the sale price over its purchase price. Trade margins will be obtained when some transaction of goods takes place and as such will not be applicable for commission agents, auctioneers, etc Trader's net earnings/surplus :The total income generated by an enterprise is distributed over 4 major heads. Interest goes to the loaners, rent goes to the landlords, compensation goes to the workers and the remaining income is retained by the entrepreneur(s). This fourth part is called the trader's net earnings / surplus. In common parlance, it is known as 'net profit' Change in stock : The change in stock has been estimated in value terms as the difference between capital locked up in stock at the beginning and that at the end of the reference month. Credit purchases were also considered while arriving at the capital locked up figures Trading expenses : The value of commodities purchased together with other incidental expenditure like electricity consumed, printing, stationery, postage and telephone charges, transport charges, rent on assets other than land, local rates, taxes, licence fees,, etc. incurred by the unit during the month for trading purpose are considered to be trading expenses of the unit Total receipts : The sale value of all commodities traded by the unit together with the value of trading goods consumed at home and other receipts incidental to trading activities will be considered as total receipts of the unit Value added : This represents the contribution of a trading unit to the economy. Gross value added is calculated by subtracting the value of trading expenses from the total of receipts and change in stock of the unit. ******** 6

12 Small Trading Units in India : 1997 CHAPTER III SUMMARY OF FINDINGS 3.0 Introduction: The present report is the second and final volume on the findings of the unorganised trade survey of NSS 53rd round. In the first volume (report number 443) of the series, 12 tables were presented containing the main characteristics of small trading units, namely, number of enterprises, workers, value added and trade margins. The remaining tables of the tabulation plan are given in this report. This report also furnishes the information on the abovementioned characteristics but the classificatory variables are different. As for example, Gross Value Added per enterprise was shown in the first volume; in this volume Gross Value Added per worker are given. Reported trade margins were shown in the first volume whereas calculated trade margins are shown in the second, etc. Other than the above characteristics, information about fixed assets, average number of days / months operated by the enterprises and GVA by factor income approach are also added in the present volume. The summaries of findings of the report are discussed in the form of 20 statements. Some of the statements have been subdivided into two or three parts for presentation of the findings in finer details. It may be mentioned that dash (-) or zero point zero (0.0) used in the tables will have their usual connotations of not available or negligible values in respective situations Number of FSUs and SSUs surveyed : Statement 1 gives the number of sample FSUs and SSUs surveyed for different states and UTs. It may be seen that in NSS 53rd round, 5988 villages and 7138 UFS blocks were surveyed all over India. Out of these villages and blocks surveyed, data were collected from and enterprises respectively. The sample size for the UTs as well as the relatively smaller states like Arunachal Pradesh, Goa, Haryana, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura was small. It is also seen that major 14 states of the country viz. Andhra Pradesh, Assam, Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal cover more than 90% of the FSUs and SSUs. As such, in most of the statements the estimates are given only for those 14 states where substantial number of units could be netted in the sample. The number of enterprises surveyed per FSU is observed to be 12.1 and 11.6 in the rural and urban areas respectively. At all India level, the SSU/FSU rate is observed to be 11.9 i.e. 12 enterprises per village/block Number of sample enterprises : Statement 1a shows the number of sample enterprises for different NIC groups by OATEs, NDTEs and combined. From the statement it is seen that out of about 1.56 lakh enterprises surveyed in NSS 53rd round, only 16% enterprises were NDTEs which clearly suggests that OATEs were abundantly represented in the sample. For wholesale trade, however, the dominance of OATEs was less prominent. There, sample OATEs were found to have accounted for about 57% of the total surveyed enterprises. In fact, for wholesale trade in wood, firewood, leather etc. (NIC 61) and in machinery and equipment (NIC 62), NDTEs were found to be sampled more in number. In free collection category, only 2.5% of the enterprises surveyed were NDTEs. In auctioneering services, only 17 enterprises were caught all over India. Maximum number of enterprises were surveyed from NIC 65 i.e. retail trade in food articles etc. NIC 68 (retail trade n.e.c) was also fairly represented in the sample. Among free collection categories, NIC 052 (firewood from forest), 054 (gums, resins, honey, fruits from forests) and 061( inland water fishing) showed substantial number of enterprises (mostly OATEs) in the sample. Retail trading enterprises (sub-total: ) accounted for about 90% of the total sample. 7

13 Small Trading Units in India : 1997 Statement 1: Number of sample FSUs and SSUs surveyed in NSS 53rd round State / UTs rural Urban combined fsu ssu fsu ssu fsu ssu (1) (2) (3) (4) (5) (6) (7) Andhra Pradesh Arunachal Pradesh Assam Bihar Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh West Bengal A & N Islands Chandigarh Dadra & Nagar Haveli Daman & Diu Delhi Lakshadweep Pondicherry India

14 Small Trading Units in India : 1997 Statement 1a : Number of sample enterprises by industry group & enterprise type INDIA RURAL+URBAN NIC group OATE NDTE COMB NIC group OATE NDTE COMB (1) (2) (3) (4) (1) (2) (3) (4) st: st: st: st: st: st: st: st: (r.t.) (auc. ser.) st: st : ( w. t) st:64 (comm. ag.) st: ( f.c.) all ind Note : st=sub-total, w.t.=wholesale trade, r.t.= retail trade, comm.. ag. = Commission agents, auc. ser. = aucitineering services and f.c = free collection enterprises. 9

15 Small Trading Units in India : Estimated number of enterprises: The estimated number of OATEs, NDTEs and their total for all states and UTs are given in statement 2. It is observed that out of 145 lakh enterprises in India 133 lakh (92%) are OATEs and the rest 12 lakh (8%) are NDTEs. It is also seen that about 84 lakh (58%) enterprises are located in the rural areas and 61 lakh (42%) in the urban areas. The percentage of NDTEs is observed to be only 4 in case of rural enterprises and 15 in case of urban enterprises. Among the states, sizable number of NDTEs are observed in West Bengal (0.40 lakh), Maharashtra(0.39 lakh), Andhra Pradesh (0.29 lakh) and Kerala (0.25 lakh) in the rural areas. In the urban areas substantial number of NDTEs are found in Tamil Nadu(1.14 lakh), Maharashtra(1.06 lakh), West Bengal(1.04 lakh) and Andhra Pradesh(0.68 lakh). OATEs are abundant in almost all the states and they are more in number in the rural areas. Uttar Pradesh, West Bengal, Orissa, Bihar and Andhra Pradesh in the rural sector and Uttar Pradesh, West Bengal, Tamil Nadu, Maharashtra and Andhra Pradesh in the urban sector are leaders in the number of OATEs. Overall estimates of number of enterprises is highest in Uttar Pradesh followed by West Bengal, Bihar, Andhra Pradesh and Orissa. Statement 2: Estimated number of OATEs and NDTEs for different states/uts rural urban combined State / UTs OATE NDTE total OATE NDTE total OATE NDTE total (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Andhra Pradesh Arunachal Pradesh Assam Bihar Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh West Bengal A & N Islands Chandigarh Dadra & Nagar Haveli Daman & Diu Delhi Lekshadweep Pondicherry India

16 Small Trading Units in India : 1997 Statement 2a : Estimated number of enterprises by industry group and enterprise type INDIA RURAL+URBAN NIC group OATE NDTE COMB NIC group OATE NDTE COMB (1) (2) (3) (4) (1) (2) (3) (4) st: st: st: st: st: st: st: st: (r. t) (auc. serv.) st: st:60..63( w. t) st:64(com. ag.) st: (f. c) all industries OATEs, NDTEs and thier total at 3-digit levels of NIC. It is seen that out of a total of about 145 lakh small trading units in India, OATEs and NDTEs are estimated to be 133 lakh and 12 lakh respectively. Maximum number of such enterprises are recorded against retail trade (sub-total 65 to 68). Contribution of NIC 65 (retail trade in food products) is found to be maximum among all NICs. At 3- digit level, NIC 650, 688 and 655 show significantly high number of enterprises. In wholesale trade, 11

17 Small Trading Units in India : 1997 NIC 60 (wholesale trade in food and agricultural raw materials) has the highest contribution. NIC 601 and 638 are found to have substantial number of enterprises. Auctioneering services (NIC 890) are observed to be very less in number (only 1228 all over India). But enterprises in free collection have a sizable number. There are about 16 lakh OATEs and 11 thousand NDTEs which traded in freely collected goods. In most of the NIC groups, OATEs are found more in number than the NDTEs, but for NIC 609, 615, 623, 632, 634 etc., the situation is found to be reverse where NDTEs are more in number. As expected, proportion of NDTEs among wholesale trading units (19%) is more than that among retail trading units(8 %) Key estimates of unorganised trade: The key estimates of unorganised trade obtained from NSS 53rd round have been presented in statement 3 in a concised form. Three basic characteristics of unorganised trade viz. number of enterprises, persons employed therein and monthly gross value added by the enterprises have been considered in the statement. The estimates are provided separately for wholesale trade, retail trade and all trading enterprises. Statement 3: Key characteristics of NSS 53rd round characteristic wholesale trade retail trade all Enterprises (lakh) (i) total (ii) OATE (iii) NDTE Employment (lakh) (i) total (ii) female (iii) children (iv) hired (v) full time Gross value added (GVA) (i) total (crores) (ii) GVA per enterprise(rs) (iii) GVA per worker(rs) It may be observed that in the unorganised sector, retail trading units (119 lakh) are outnumbering the wholesale units (8 lakh) by a long margin. However, this feature is less prominent in NDTEs than in OATEs. Among 222 lakh (approx) workers engaged in the unorganised trade sector, it is seen that about 15 lakh workers are employed by the wholesale trading outlets, whereas, about 176 lakh workers are engaged by the retail trading outlets. The employment figures for females suggest that sizable proportions of such workers are engaged in the other trading units (free collection, auctioneering and commission agents taken together). Considering the relatively small number of wholesale enterperises in India (8.02 lakh), the number of hired or full-time workers engaged in such enterprises are found to be substantial. Gross value added by the wholesale units is about one seventh of the total GVA. The retail trading units add value of Rs 3102 crore which amounts to 79% of the total GVA. Gross value added per enterprise and per worker are estimated to be Rs 2708 and Rs 1773 respectively. It may be noted that average value added by a wholesale unit (Rs 7003) is much more than that added by a retail unit (Rs 3102). The variation in the average GVA between wholesale and retail trade is reduced when per worker estimates are taken. 12

18 Small Trading Units in India : 1997 Statement 3a:Comparable statement showing the number of enterprises and number of persons employed in unorganised trade over NSS rounds NSS round number of enterprises ( 00) number of persons employed ( 00) wholesale trade retail trade others Wholesale trade retail trade others all 34th round ( ) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) 41st round ( ) (338.3) (56.6) (242.8) (65.6) (488.8) (66.2) (172.9) (77.4) 46th round ( ) (6.6) (18.5) (646.6) (41.5) (2.5) (13.6) (845.5) (37.4) 53rd round (1997) 8024 (45.8) (12.7) (352.9) (4.3) (28.4) (8.4) (-49.2) (1.0) Note :- figures within bracket show % increase from previous round Comparison of estimates obtained in various rounds: Statement 3a shows the number of enterprises and persons employed in unorganised trading enterprises over 4 time periods viz. 34th round ( ), 41st round ( ), 46th round ( ) and 53rd round (1997) of NSS. It is seen that total number of enterprises has shown an upward trend in the four time periods. But the growth has somewhat slowed down after The wholesale trading units grew 5 times after 34th round. They remained almost the same in 41st and 46th rounds. But after , there is a sudden rise in the number of such units. The total number of enterprises has grown by about 41 lakhs in 46th round as compared to the 41st round. It is seen that the rise was due to the rise in the number of trading units other than wholesale and retail trade. Total employment has grown steadily in 34th, 41st and 46th rounds. The growth is minimal after 46th round. Number of persons employed has taken a big jump after 34th round for wholesale as well as retail trade. The growth has slowed down in 53rd round. The growth in the number of persons employed during 46th round is seen to be due to the growth in the employment generated by the other trading units Ranking the major states in respect of unorganised trade: In statement 4 the major 16 states (including Delhi) of the country have been ranked on the basis of the 3 basic characteristics, namely, number of enterprises, employment and (monthly) value added. 13

19 Small Trading Units in India : 1997 Statement 4: Major states ranked in order of enterprises, employment and gross value added (GVA). states/uts number % share enterprises employment gross value added R A N K number % share R A N K Rupees % share R A N K Uttar Pradesh West Bengal Bihar Andhra Pradesh Orissa Maharashtra Tamil Nadu Karnataka Madhya Pradesh Gujarat Rajasthan Punjab Kerala Assam Haryana Delhi India It has been observed that the above 16 states contribute about 97% of the total enterprises, employment and gross value added of the country. Hence the comments have been restricted to those major states only. It may be noted that the ranks given to the states on the basis of number of enterprises and employment are more or less consistent but their ranks according to the share of GVA are varying considerably. This is because of the composition of the states in respect of types of enterprises and types of trade. The states where concentration of the NDTEs or the wholesale enterprises are more are expected to add more value than the states where OATEs or free collection units are more in number. This point is well established by the observations given below. The state of Uttar Pradesh is ranked first in respect of the number of enterprises and employment. But the rank of the state is observed to be second in respect of its share in the GVA of the nation. Maharashtra stands 6th in the number of enterprises, 5th in employment but ranked first in its share of GVA. Orissa is 5th in enterprises, 4th in employment but 14th in its share of GVA. This is perhaps due to the existence of a sizable number of enterprises in Orissa in the free collection category which contribute marginally in GVA. In case of Delhi, it is seen that the rank of the state according to the share in GVA is 13th although it stands 16th on the basis of estimated enterprises and employment which clearly indicates that Delhi has a concentration of relatively bigger enterprises than lowly placed states like Orissa, Assam and Haryana each of which obviously has a bigger share in the number of enterprises. 14

20 Small Trading Units in India : Contribution of industries at the 3-digit level : Statement 5 and 5a delve into the 3- digit level composition of the industries in wholesale (Statement 5) and retail (statements 5a) trading activities. Percentage shares of individual NIC groups in respect of the number of enterprises, number of workers and gross value added are also given in the State ments to indicate the relative importance of the individual industries in their contributions. The enterprises have been arranged in order of their percentage share in GVA at the 3-digit level of NIC. Statement 5 : Contributions of particular industries to the wholesale trade NIC group number of enterprises % share in total number of workers % share in total gross value added (Rs.) % share in total wholesale trade

21 Small Trading Units in India : 1997 Statement 5a : Contributions of particular industries to the retail trade NIC group number of enterprises % share in total number of workers % share in total gross value added (Rs.) % share in total st : st : st : st : retail trade

22 Small Trading Units in India : 1997 It is observed that there were about 8 lakh wholesale trading units employing about 15 lakh workers and 119 lakh retails trading units employing about 176 lakh workers in The wholesale enterprises added value of about Rs. 562 crores whereas the retail trading units contributed about Rs crores to GVA. It is also seen that the NICs 600 (w.t in metal scraps) are the four industries which contributed quite substantially to the total number of wholesale tading units. They account for about 58.4% of the wholesale units. The maximum number of wholesale enterprises, however, came from the two NICs, viz. 601 (w.t in basic food stuffs) and 638 (w.t in metal scraps). Similarly, the contributions of the NICs 650 (r.t in cereals), 651 (r.t in vegetables), 655 (r.t in pan, bidi etc) and 688 (non-specialsed r.t) were noteworthy in the number of retail trading units. These 4 industries jointly contributed about 62% of the total number of retail enterprises. The maximum number of units in retails trade came from NIC groups (r.t in in cereals) and 688 (non-specialised r.t). In the total number of workers engaged by the wholesale and retail trading units, significant contributions are observed from NIC 601(w.t in basic food stuff), 638 (w.t in metal scraps), 600 (w.t in cereals), 609 (w.t in textiles) and 605 (w.t in live animals) in wholesale trading activities and NIC 650 (r.t in cereals), 688 (non-specialised r.t), 655 (r.t in pan, bidi etc.), 651 (r.t in vegetables), and 689 (r.t not elsewhere classified) in retail trading activities. These industries contributed about 58.5% of the workers engaged in wholesale trad and 65.6% of the workers of the retail trade. Maximum workers are engaged by the industries 601 (w.t in basic food stuff) and 638 (w.t in metal scraps) in wholesale trade and 650 (r.t in cereals) and 688 (nonspecialised r.t) in the retail trade. Gross value added by the wholesale trade are substantial for NICs 600 (w.t in basis food stuffs), 601 (w.t in basic food stuff), 609 (w.t in textiles), 615 (w.t in medicines) and 639 (w.t not elsewhere classified). They contributed 71.3% of the total GVA. In retail trade, 61.4% GVA is contributed by the NICs 650 (r.t in cereals), 651 (r.t in vegetables), 660 (r.t in textiles), 688 (non-specialised r.t), 683 (r.t in building materials) and 689 (r.t not elsewhere classified). The maximum contributions came from the NICs 650 (r.t in cereals) and 688 (non-specialised r.t) Distribution of enterprises by number of workers : Statement 6 shows the percentage distribution of enterprises by number of workers. It is observed that at the all- India level about 90% enterprises were covered by the size classes 1 and 2. About 60% of the enterprises were accounted for by the class 1. The overwhelming presence of OATEs in the unorganised trade sector may be the reason behind this finding. Concentration of enterprises in size class 1 was found to be the minimum for Andhra Pradesh (46%) and the maximum for Bihar (70%). Percentage of enterprises in size class 2 was observed to be maximum (42%) in Andhra Pradesh and the minimum in Assam (21%). In size class 3, Orissa, Andhra Pradesh, Maharashtra and Tamil Nadu showed higher proportion of enterprises whereas Tamil Nadu and Madhya Pradesh recorded sizable proportions of enterprises in employment size class 4. It may be noted that in size class 0 also, certain proportions of enterprises were present in all the above States. Those were the cases where enterprises did not operated during the reference month. About 0.8% of enterprises were observed in the size class 5 or more. These may have been the cases of bigger OATEs (with many household workers) or misclassified DTEs. 17

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