Editorial: Self-employed nation

There are a number of striking patterns in the fifth census, both by themselves and in comparison with the fourth, done in 1998. In 2005, manufacturing and retail trade were by far the most important employers, accounting for 25.4 million and 25.1 million workers, respectively, out of a total estimated employment of 90 million in the non-agricultural sector, with agricultural establishments covered by the census accounting for a further 10 million. In manufacturing, about 13.5 million workers were employed by rural establishments, while rural retail establishments employed about 11.5 million. Taking both rural and urban establishments together, about 18 million workers were in establishments that had at least one hired worker, while the number in this category for retail was a significantly lower 12.5 million. In other words, about half the employment in the retail sector in this country is in the so-called "own account" establishments, in which the entrepreneur, manager and worker are the same individual. Across all sectors, about 54.4 million workers were in own account establishments. In short, India is overwhelmingly a nation of self-employed people. Even among establishments with hired workers, 95 per cent had five workers or less.

 

Comparing the results of the fifth census with those of the fourth, it appears that the number of rural establishments grew at a faster rate than urban ones