The latest Annual Survey of Industries (ASI) showed that India swiftly recovered after the Covid-19 pandemic, with employment rising above the pre-pandemic level in 2021-22. Investment growth also picked up during this period, but it has yet to surpass the levels witnessed before the pandemic. Ishaan Gera explains the importance of ASI, what it measures and its connection with gross domestic product (GDP).
What is the Annual Survey of Industries?
The Annual Survey of Industries measures industrial statistics that present comprehensive results of the country’s registered manufacturing enterprises. It presents data on gross value added, output, inputs, invested capital, net income and profits of rural and urban enterprises across states. In 2021-22, it compiled results of 250,454 factories, with a sample size of 80,764 units. The data is collected for reference financial periods. The 2021-22 ASI data from the survey was collected from March 2023 to September 2023.
What all does it cover?
The ASI covers the entire gamut of registered factories that employ ten or more workers using power and those employing 20 or more workers without using power. The list of factories is maintained and updated by the chief inspector of factories in each state. Besides, it covers bidi and cigar manufacturing establishments registered under the Bidi & Cigar Workers (Conditions of Employment) Act, 1966 and electricity undertakings not registered with the Central Electricity Authority.
However, it does not include defence establishments, oil storage and distribution depots, restaurants, hotels, café and computer services, departmental units such as railway workshops, road transport corporation workshops, government mints, sanitary, water supply and gas storage.
What did 2021-22 results indicate?
The 2021-22 results showed that 17.2 million people were employed by enterprises during the fiscal, making a sharp recovery from 2020-21 when employment had declined to 16.1 million from 16.6 million in 2019-20. Invested capital increased 6.7% year-on-year, while gross value added was up 26.6% and profits went up 55% from the previous year, signalling robust pick-up in the economy.
What’s the connection to GDP?
The results of the Annual Survey of Industries help determine the industrial sector’s contribution to GDP. While data from the first revised estimates usually relies on the Index of Industrial Production and Wholesale Price Index combined, the second and third revised estimates use the results of the survey to determine the industrial sector’s performance. Later this month, the second revised estimates of 2021-22 and the third revised estimates or final estimates for 2022-23 will incorporate the ASI data released earlier this week.
(You can now subscribe to our Economic Times WhatsApp channel)