What Insights Did the Govt’s Pilot Survey Reveal About the Incorporated Service Sector?
Click to start listening
Synopsis
A recent pilot survey by MoSPI has shed light on the dominance of large Indian enterprises in asset ownership and compensation. With significant insights for future surveys, this study lays the groundwork for a more robust understanding of the service sector's impact on India's economy. Discover how these findings could shape the future of employment and GDP.
Key Takeaways
- 62.77% of asset ownership is held by enterprises with output > Rs 500 crore.
- Enterprises below Rs 500 crore account for 63.03% of total employment.
- 28.5% of enterprises reported having multiple business locations.
- The trade sector shows the highest additional business location percentage at 41.8%.
- The pilot study sets the groundwork for a comprehensive survey in January 2026.
New Delhi, April 30 (NationPress) A pilot survey conducted by the Ministry of Statistics and Programme Implementation (MoSPI) has unveiled that Indian enterprises with revenues exceeding Rs 500 crore significantly lead in asset ownership (62.77 percent), net fixed capital formation (62.73 percent), gross value added (69.47 percent), and total compensation (63.17 percent). Additionally, it was noted that businesses with outputs below Rs 500 crore contribute to nearly 63.03 percent of total employment and 36.84 percent of overall compensation.
Overall, 28.5 percent of enterprises indicated having multiple business locations within the state, with the trade sector showing the highest percentage at 41.8 percent for additional places of business.
This pilot study, part of the Annual Survey of Services Sector Enterprises (ASSSE), marks a pivotal step in enhancing India's statistical framework for the service sector, which plays a vital role in both GDP and employment, the ministry stated.
The pilot study not only offers critical operational insights but also sets the stage for a comprehensive annual survey of incorporated service sector enterprises starting in January 2026.
Most enterprises surveyed were confirmed to be active and operational. The service sector is crucial to India's economy, contributing over 50 percent to the national GDP and generating millions of jobs.
The pilot also validated the GSTN database as a suitable sampling frame for the upcoming survey, emphasizing the necessity for thorough verification and validation of survey tools, the relevance of data collection from enterprise records, and the obstacles faced during data gathering.
“The pilot study provides essential insights for planning and refining the sample design, determining sample size, and enhancing the questionnaire for the comprehensive survey in collaboration with key stakeholders,” stated the ministry.
Point of View
We recognize the significance of the pilot study conducted by MoSPI. It not only highlights the impressive dominance of larger enterprises but also underscores the importance of building a robust statistical framework for the service sector, which is crucial for India's economic growth and job creation. The insights gained will be invaluable in shaping future surveys and economic policies.
NationPress
08/06/2025
Frequently Asked Questions
What does the pilot survey by MoSPI reveal?
The pilot survey reveals that Indian enterprises with revenues above Rs 500 crore lead in asset ownership, net fixed capital formation, gross value added, and total compensation, highlighting their dominance in the service sector.
What percentage of employment do smaller enterprises contribute?
Enterprises with outputs below Rs 500 crore account for almost 63.03 percent of total employment within the sector.
When will the full-scale survey begin?
The full-scale annual survey of incorporated service sector enterprises is set to commence in January 2026.
Why is the pilot study important?
The pilot study is crucial as it strengthens India's statistical infrastructure for the service sector, providing a framework for future surveys and policies.
What role does the service sector play in India's economy?
The service sector is a major driver of India's economy, contributing over 50 percent to the GDP and providing millions of jobs.
