"For my part I know
nothing with any certainty, but the sight of the stars makes me dream."
—Vincent Van Gogh (Dutch,
1853-1890)
Word for the day
Rapprochement (n)
An establishment or
reestablishment of harmonious relations, e.g., a rapprochement reached between
warring factions.
Malice towards none
The latest opinion polls
suggest BJP sweeping both Gujarat and Himachal elections.
You may trust these polls or
reject them outright. Who cares!
First random thought this morning
The government has reassured people that (a) PSBs shall meet Basel
III capital adequacy norms well within the 2019 deadline; (b) the physical infrastructure
development program is on track with maximum focus on transport logistics
(railways, roads, waterways and ports); and (c) all GST related problems are
being evaluated with open mind.
This shall heal some of the ruffled feathers, ignite hopes of
recovery in investment cycle alive and keep markets busy for few months.
Overall, a happy Diwali.
Informal sector is core to Indian economy
Integration of informal sector to economy's mainstream is stated to
be one of the focus areas.
To understand the criticality of this issue, it is pertinent to
note the following findings from 6th Economic Census conducted during
2013-2014.
*
There were about 58.5mn commercial establishments
in operation in the country, employing 131.29mn people.
*
34.8mn establishments (59.48%) were in rural
areas and 23.7mn establishments (40.52%) were located in urban areas. During
8yr period between 2005-2013 the number of establishments grew 41.8% from
41.25mn to 58.5mn. The growth was higher at ~48% in urban areas.
*
Out of 58.5mn establishments, about 77.6%
establishments (45.36mn) were engaged inØnon-agricultural
activities (excluding public administration, defence and compulsory social
security activities) while the remaining 22.4% establishments (13.13mn) were
found to be engaged in agricultural activities (excluding crop production and
plantation).
*
Out of the total establishments, 22.6% belong to
primary sector of which agriculture sectorØ constitutes 22.45%,
mining and quarrying constitutes 0.15%, 19.72% belongs to secondary sector
(including construction which contributes 1.66%) and 57.68% pertain to tertiary
sector.
*
41.97mn (71.74%) were Own Account Establishments
(i.e. establishments without any hiredØ worker) and the remaining
16.53mn (28.26%) were establishments with at least one hired worker.
*
Own Account Establishments grew at the rate of
56.02% while the growth of establishments with hired workers was 15.11%, since
2005.
*
Out of 58.50mn establishments, around 96.4%
establishments were under private ownershipØ and remaining 3.6%
establishments reported their ownership as Government or PSU.
*
Proprietary establishments were 89.39%. More than one third (36.19%) of all the
establishments in the country were home basedØ establishments i.e.
inside household. Another 18.44% establishments were operating from outside
household without fixed structure, and the remaining 45.37% establishments were
operating from outside households with fixed structure.
*
Top five States viz. Uttar Pradesh (11.43%),
Maharashtra (10.49%), West Bengal (10.10%),Ø Tamil Nadu (8.60%) and
Andhra Pradesh (7.25%) together accounted for about 50% of the total number of
establishments in the country.
*
Livestock was the major economic activity
(86.74%) of agricultural sector. Retail TradeØ (35.41%) followed by
Manufacturing (22.77%) were the dominant ones within the nonagricultural
sector.
*
Among the States, maximum growth rate of
establishments during 2005-2013 was observed inØ Manipur (121.07%)
followed by Assam (107.99%) and Sikkim (100.07%).
*
Around 131.29mn persons were found employed in
58.5mn establishments. 67.89mn persons (51.71%) were employed in rural areas
and 63.4mn persons (48.29%) in urban areas. While employment in Own Account
Establishments was of the order of 58.15mn persons (44.29%), the employment in
establishments with at least one hired worker was about 73.14mn persons
(55.71%).
*
The growth rate of employment since 2005 was of
the order of 38.13%. Around 57.14mn persons (43.53%) were hired workers and the
remaining 74.14mnØ
persons (56.47%) were not-hired workers. Among the total workers, 74.83% were
male and 25.17% female.
*
Manufacturing sector was the largest employer
providing employment to 30.3mn (23.1%)Ø persons. This was
followed by retail trade employing 27.19mn persons (20.7%) and livestock sector
employing 19.4mn persons (14.8 %).
*
Around 55.86mnØ establishments (95.50%)
were having 1-5 workers, around 1.83mn establishments (3.13%) were having 6-9
workers, while 0.8mn establishments (1.37%) employed 10 or more workers.
*
Highest growth rate of employment was, however,
observed in Manipur (93.57%), followed byØ Assam (89.32%) and Uttar
Pradesh (79.94%).
*
Total number of Handicraft/Handloom
establishments was 1.87mn (1.71%). TheseØ establishments provided
employment to 4.20mn persons (3.12%). Out of the total establishments, 78.9%
were without hired workers. About 67.0% of the handicraft/handloom
establishments were outside the household without fixed structure or inside
household. Majority of establishments
i.e. 96.6% were owned by proprietors.
This is the true depiction of the employment conditions and
current business paradigm.
Any policy solution that does not account for this reality is
bound to be ineffective.
....to continue tomorrow
Also see
Living without freedom and without the right to a say how the government will treat its people is living under tyranny. Tyrannical governments and centrally controlled economies go hand-in-hand. https://europa-road.eu/hu/transportation.php
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