Enterprises with output below Rs 500 cr account for 63% of employment

But these enterprises, a pilot study showed, accounted for only 36.84 per cent of total compensation

 

Enterprises with output less than Rs 500 crore accounted for more than 63 per cent of total employment in India, according to data released by the Ministry of Statistics and Programme Implementation on Wednesday.

 

The data was released as part of a pilot study on Annual Survey of Services Sector Enterprises (ASSSE), which aims to capture insights into the incorporated service sector.

 

The data shows that large enterprises — those with an output of Rs 500 crore and above — hold a dominant share in several key economic indicators: 62.77 per cent of total asset ownership, 62.73 per cent of net fixed capital formation, 69.47 per cent of gross value added, and 63.17 per cent of total compensation. 

 

The data also indicates that during FY 2022–23, the majority of corporate entities in the ASSSE pilot study were private limited companies, comprising 82.40 per cent at the aggregate level. These were followed by public limited companies and limited liability partnerships, each representing nearly 8 per cent of the total. The pattern was consistent across all Broad Activity Categories (BAC), namely construction, trade, and other services.

 

The data also showed that, overall, 28.5 per cent of the enterprises reported having multiple business locations within the same state. This proportion was highest in the trade sector, where approximately 41.8 per cent of enterprises reported such additional business premises. “As per GSTN nomenclature, the term ‘enterprise’ is analogous to ‘principal place of business’, which may have one or more ‘additional places of business’ (establishments) in the state,” the government clarified.

 

While conducting the survey, the government encountered several challenges. Although most enterprises were found to be existing and operational, “challenges were faced in bifurcating the GSTIN-level information pertaining to the selected enterprises from pan-India centralised records (often CIN-based) maintained at the headquarter level,” the government said.