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Employment in enterprises grows 38%, number of companies 42% in India

NEW DELHI: The sixth Economic Census has found that employment in Indian enterprises grew 38.13% in 2013 from 2005 even as the growth in the total number of establishments in the country was higher at 41.75%. As per the census, which was carried out between January 2013 and April 2014, 58.5 million establishments were found to be in operation employing 131.29 million people.

The census results are different from those of the household survey, which is also done by the ministry of statistics and programme implementation, as the approach and coverage of the two surveys are different. In the economic census, the en meration unit is an establishment while in the household survey, the accounting unit is a worker.

Establishment is defined as units engaged in production and/or distribution of goods and services not for the purpose of sole consumption.

Besides, the economic census has left out establishments involved in crop production, plantation, public administration, defence and compulsory social security. "Hence, farmers, casual labour, contract workers, housemaids and many others get missed in the census. It is not comprehensive that way," said an official.

As per the census report, manufacturing sector was the largest employer providing employment to 23.1% of the population covered, followed by retail trade employing 20.7% and livestock sector that employed 14.8% of the people considered in the census. During the period between the two censuses (2005 and 2013), non-agricultural establishments grew 28.97% while agricultural establishments grew 115.98%, suggesting a strong increase in agriculture related business.

The total number of establishments in the country were 41.25 million in 2005. According to the census results, 59.48% establishments were found in rural areas employing 51.71% of the population under consideration whereas 40.52% establishments that were located in urban areas employed 48.29% people.

The census revealed that Uttar Pradesh, Maharashtra, West Bengal, Tamil Nadu and Andhra together accounted for about 50% of the total number of establishments in the country. Maharashtra, Uttar Pradesh, West Bengal, Tamil Nadu and Gujarat accounted for almost half of the total employment in the country. In its report, the ministry said that data for handicraft and handloom establishments were collected for the first time.

The total number of handicraft and handloom establishments were 1.87 million, providing employment to 4.2 million people. The average employment per establishment for handicraft or handloom establishments was found to be 2.24. In terms of religion, Hindus owned 80.57% of enterprises while Muslim owners accounted for 6.87% of establishments. Christians accounted for 3.53% while Sikhs owned 2.1% enterprises.