ANNUAL SURVEY OF INDUSTRIES (ASI)

 

 

 

Introduction

 

          The Annual Survey of Industries (ASI) is the principal source of industrial statistics in India. It provides statistical information to assess and evaluate, objectively and realistically, the changes in the growth, composition and structure of organised manufacturing sector comprising activities related to manufacturing processes, repair services, gas and water supply and cold storage. Industrial sector occupies an important position in the Indian economy and has a pivotal role to play in the rapid and balanced economic development. Viewed in this context the collection and dissemination of ASI data, on a regular basis, are of vital importance. The Survey is conducted annually under the statutory provisions of the Collection of Statistics Act 1953, and the Rules framed there-under in 1959, except in the State of Jammu & Kashmir where it is conducted under the State Collection of Statistics Act, 1961 and the rules framed there-under in 1964. 

 

 

Historical Background

 

2.     Understanding the importance of collection and compilation of data relating to industrial sector of the country, the Government of India, after 1930, launched a voluntary scheme for collection of detailed data from important industries in India. During the Second World War, in order to cater to the specific requirement of war management, each government department created its own statistical sections.  In 1942, Industrial Statistics Act was formed on the recommendation of the Royal Commission on Labour. A Directorate of Industrial Statistics (DIS) was formed in 1945 under Ministry of Commerce to administer the act. DIS started Census of Manufacturing Industries in 1946. After independence, Central Statistical Organisation (CSO) was set up under Cabinet Secretariat by the Government of India in 1951 as an apex statistical body for co-ordinating the large variety of data collected by various agencies which was necessitated for adoption of planned economy by the government. In 1956, the Industrial Statistics Act 1942 was repealed with the passing of a more comprehensive Collection of Statistics Act 1953. Subsequently DIS was transferred to the Cabinet Secretariat in 1959 and was attached to Central Statistical Organisation as Industrial Statistics Wing. 

 

Census of Manufacturing Industries (CMI)

 

3.     The Directorate of Industrial Statistics launched the CMI in 1946 with the objective of studying the structure of the Indian industry and estimating its contribution to national income.  Because of practical difficulties, the CMI could cover only 29 of the 63 industry groups specified in the Industrial Statistics Act and extended only to 11 States of the Indian Union.  It was conducted annually up to 1958.  By 1958, the geographical coverage of the CMI extended to 13 States and 2 Union Territories (UT).

 

Sample Survey of Manufacturing Industries (SSMI)

 

4.     Following the recommendation of the National Income Committee (1949), the Directorate of Industrial Statistics conducted the first SSMI in 1949 for collecting data from factories falling under the 34 industry groups left out by the CMI and defined under the Factories Act 1934.  The technical work including the survey design, sample selection, and preparation of schedules was undertaken by the Directorate of Industrial Statistics while the tabulation and analysis of data, report writing, etc. was carried out by the Indian Statistical Institute, Calcutta. The SSMI was conducted annually up to 1958 by the then Directorate of National Sample Survey (now the NSS Organisation). 

 

 

Annual Survey of Industries (ASI)

 

5.     The Collection of Statistics (Central) Rules, 1959 framed under the 1953 Act provided for, among others, a comprehensive Annual Survey of Industries (ASI) in India.  This survey replaced both the CMI and SSMI.  The ASI was launched in 1960 with 1959 as the reference year and is continuing since then except for 1972.  For ASI, the Collection of Statistics Act 1953 and the rules frame there-under in 1959 provides the statutory basis.  The ASI refers to the factories defined in accordance with the Factories Act 1948, and thus has a coverage wider than that of the CMI and SSMI put together.

 

 

Scope and Coverage

 

6.    The ASI extends to the entire country except the States of Arunachal Pradesh, Mizoram, and Sikkim and Union Territory of Lakshadweep. It covers all factories registered under Sections 2m(i) and 2m(ii) of the Factories Act, 1948 i.e. those factories employing 10 or more workers using power; and those employing 20 or more workers without using power. The survey also covers bidi and cigar manufacturing establishments registered under the Bidi & Cigar Workers (Conditions of Employment) Act, 1966 with coverage as above. All electricity undertakings engaged in generation, transmission and distribution of electricity registered with the Central Electricity Authority (CEA) were covered under ASI irrespective of their employment size. Certain servicing units and activities like water supply, cold storage, repairing of motor vehicles and other consumer durables like watches etc. are covered under the Survey. Though servicing industries like motion picture production, personal services like laundry services, job dyeing, etc. are covered under the Survey but data are not tabulated, as these industries do not fall under the scope of industrial sector defined by the United Nations.  Defence establishments, oil storage and distribution depots, restaurants, hotels, café and computer services and the technical training institutes, etc. are excluded from the purview of the Survey.

 

7.     From ASI 1998-99, the electricity units registered with the CEA and the departmental units such as railway workshops, RTC workshops, Govt. Mints, sanitary, water supply, gas storage etc. are not covered, as there are alternative sources of their data compilation for the GDP estimates by the National Accounts Division of CSO.

 

ASI frame and its updation

 

8.     The ASI frame is based on the lists of registered factories/units maintained by the Chief Inspector of Factories (CIF) in each State/UT and those maintained by licensing authorities in respect of bidi and cigar establishments and electricity undertakings. Regional offices of FOD (NSSO) maintain close liaison with CIF in updating the frame every year.

 

Sampling Design

 

9.     The primary unit of enumeration in the survey is a factory in the case of manufacturing industries, a workshop in the case of repair services, an undertaking or a licensee in the case of electricity, gas & water supply undertakings and an establishment in the case of bidi & cigar industries.  The owner of two or more establishments located in the same State and pertaining to the same industry group and belonging to same scheme (census or sample) is, however, permitted to furnish a single consolidated return.  Such consolidated returns are common feature in the case of bidi and cigar establishments, electricity and certain public sector undertakings. 

 

10.    The ASI adopted from the beginning a very simple design. All units with 50 or more workers operating with power, and units having 100 or more workers operating without power were covered under the census sector.  Also 12 States/UTs, namely, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Nagaland, Tripura and Pondicherry, A&N Islands, Chandigarh, Goa, Daman & Diu, D&N Haveli, which were industrially backward, were covered under the census sector to take complete stock of their manufacturing activities.  Even the sample sector which comprised of units employing less than 50/100 workers (operating with or without power) in the major States were covered fully over a span of two years.  This procedure continued till ASI 1986-87 by which time the total number of factories in the country grew enormously.  Accordingly, the definition of the census sector was changed from ASI 1987-88 to the units having 100 or more workers irrespective of their operation with or without power. All the units in the frame of 12 less industrially developed States/UTs were surveyed on complete enumeration basis.  The rest of the universe was covered on sampling basis through an efficient sampling design adopting State X 3 digit industry group as stratum so as to cover all the units in a span of three years.  This design continued till ASI 1996-97.

 

11.    Before launching of ASI 1997-98 due to constraints of resources in covering a large number of units in the survey and generating the results of the survey in time bound manner, a review of the earlier design was made and a revised design was adopted in ASI 1997-98.  The census sector was defined to include units having 200 or more workers and also some Significant Units were identified from the databases of ASI 1993-94 to ASI 1995-96, which although having less than 200 workers, contributed significantly to the Value of Output in these ASI years. The complete coverage of all Units in 12 less industrially developed States/UTs, namely, Goa, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Nagaland, Tripura, A&N Islands, Chandigarh UT, D&N Haveli, Daman & Diu and Pondicherry was continued. Also, all public sector undertakings (PSUs) were included in the census sector.  The rest of the universe was covered in the Sample Sector by the usual formula of determination of sample size at a given value of the precision of the estimates with at least 99 per cent chance.  This approach significantly reduced the sample size in ASI 1997-98 compared to that of ASI 1996-97 while maintaining a fair level of degree of precision for the estimates up to the State level. However, in 1997-98 a consensus decision has been taken so as not to attempt for the district level estimates. This design has been more or less continued in 2004-05 with the modification that the census sector was defined to include units having 100 or more workers instead of 200 or more workers and only 5 industrially backward States/UTs, namely, Manipur, Meghalaya, Nagaland, Tripura and A&N Islands were covered in census sector.  The public sector undertakings were also covered in the general scheme i.e. units having 100 or more workers in census sector and rest in sample sector. 

 

 

 

Industrial Classification

 

12.    The Standard Industrial and Occupation Classification 1962 developed on the basis of the UN International Standard Industrial Classification (ISIC) of all Economic Activities 1958 (Rev. 1) was adopted from its first survey in 1960.   With effect from ASI 1973-74, the National Industrial Classification (NIC) 1970 developed subsequently on the basis of UNISIC 1968(Rev.2) has been adopted. The NIC 1987 that strictly followed UNISIC 1968 was adopted from ASI 1989-90 to ASI 1997-98.  The NIC 1998, developed on the basis of UNISIC, 1990 (Rev. 3) was used from ASI 1998-99 to ASI 2003-04. The latest classification, i.e. NIC 2004, developed on the basis of UNISIC 2002 (Rev. 3.1) has been adopted from ASI 2004-05.

 

Reference period & schedule of enquiry

 

13.    Reference period for ASI is the accounting year of the industrial unit ending on any day during the fiscal year.  Thus, in ASI 2004-05, the data collected from the respective industrial units relate to their accounting year ended on any day between 1st April 2004 and 31 March 2005.

 

14.    Data for the ASI are collected through a comprehensive schedule.  In the initial rounds, the schedule sought particulars relating to manufacturing activity only.  Over the years, additions were made to meet the specific data requirements of various organisations.  By 1973-74, the schedule consisted of five Parts: Part I on manufacturing, Part II on labour turnover, Part III on stocks & consumption of components and accessories in small scale sector, Part IV on construction expenditure and Part V on indirect taxes, sales, subsidies and capacity of power equipments installed.  It was felt that the ASI schedule had become too unwieldy and complicated.  So a modified schedule with three parts on manufacturing, labour and construction was adopted with effect from ASI 1974-75. Further modifications in the schedule were carried out in 1987-88, and again in 1997-98. Part III schedule relating to construction has been discontinued from 1998-99. The schedule for ASI 2004-05 also incorporated some minor changes.

 

Concepts and Definitions of items collected through the schedule of enquiry

 

15.    The concepts and definitions of items collected through ASI schedule are given below:

 

Reference Year   for ASI 2004-05 is the accounting year of the factory ending on 31st March 2005 while the survey was conducted in 2005-06.

 

Factory is one that is registered under sections 2m (i) and 2m (ii) of the Factories Act, 1948. The sections 2m (i) and 2m (ii) refer to any premises including the precincts thereof (a) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on; or (b) whereon twenty or more workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily  so carried on.

 

Fixed Capital   represents the depreciated value of fixed assets owned by the factory as on the closing day of the accounting year. Fixed assets are those that have a normal productive life of more than one year. Fixed capital includes land including lease- hold land, buildings, plant & machinery, furniture and fixtures, transport equipment, water system and roadways and other fixed assets such as hospitals, schools, etc. used for the benefit of the factory personnel.

 

Physical Working Capital   is the total inventories comprising of raw materials and components, fuels and lubricants, spares, stores and others, semi-finished goods and finished goods as on the closing day of the accounting year. However, it does not include the stock of the materials, fuels, stores, etc. supplied by others to the factory for processing and finished goods processed by the factory from raw materials supplied by others.

 

Working Capital    is the sum total of the physical working capital as already defined above and the cash deposits in hand and at bank and the net balance receivable over amounts payable at the end of the accounting year. Working capital, however, excludes unused overdraft facility, fixed deposits (irrespective of duration), advances for acquisition of fixed assets, loans and advances by proprietors and partners (irrespective of their purpose and duration), long-term loans (including interest thereon) and investments.

 

Productive Capital      is the total of fixed capital and working capital as defined above

 

Invested Capital   is the total of fixed capital and physical working capital as defined above.

 

Gross Value of Plant and Machinery   represents the total original (un-depreciated) value of installed plant and machinery at the end of the accounting year. It includes the book value of the newly installed plants and machinery and the approximate value of rented in plants and machinery at the time of renting-in but excludes the value of rented-out plants and machinery.  Total value of all the plants and machinery acquired on hire - purchase basis is also included.

 

Outstanding Loans   represent all loans (whether short term or long term, interest bearing or not) outstanding according to the books of the factory as on the closing day of the accounting year.

 

Workers  are defined to include all persons employed directly or through any agency whether for  wages  or not and engaged in any manufacturing process or in cleaning any part of the machinery  or premises used for manufacturing process  or in any other kind of work incidental to or connected with the manufacturing process or the subject of the  manufacturing process . Labour engaged in the repair & maintenance, or production of fixed assets for factory's own use, or employed for generating electricity, or producing coal, gas etc. are included.

 

Employees  include all workers defined  above and persons receiving wages and holding clerical or supervisory or managerial positions engaged in administrative office, store keeping section and welfare section, sales department as also those engaged in purchase of raw materials etc. or purchase of fixed assets for the factory as well as watch and ward staff. 

 

Total Persons Engaged  include the employees as defined above and all working proprietors and their family members who are actively engaged in the work of the factory even without any pay, and the unpaid members of the co-operative societies who worked in or for the factory in any direct and productive capacity. The number of workers or employees is an average number obtained by dividing mandays worked by the number of days the factory had worked during the reference year.

 

Wages and Salaries  are defined to include all remuneration in monetary terms and also payable more or less regularly in each pay period to workers as compensation for work done during the accounting year. It includes (a) direct wages and salary (i.e., basic wages/salaries, payment of overtime, dearness, compensatory allowance, house rent and other allowances), (b) remuneration for the period not worked (i.e., basic wages, salaries and allowances payable for leave period, paid holiday, lay-off payments and compensation for unemployment, if not paid from sources other than employers), (c) bonuses and ex-gratia payment paid both at regular and less frequent intervals (i.e., incentive bonuses, good attendance bonuses, productive bonuses, profit sharing bonuses, festival or year-end bonuses, etc.). It excludes lay off payments which are made from trust or other special funds set up exclusively for this purpose i.e., payments not made by the employer. It also excludes imputed value of benefits in kind, employer's contribution to old age benefits and other social security charges, direct expenditure on maternity benefits and crèches and other group benefits. Travelling and other expenditure incurred for business purposes and reimbursed by the employer are excluded. The wages are expressed in terms of gross value i.e., before deduction for fines, damages, taxes, provident fund, employee's state insurance contribution, etc.

 

Contribution To Provident Fund And Other Funds  includes old age benefits like provident fund, pension, gratuity, etc. and  employers contribution towards other social security charges  such as employees state insurance, compensation for work injuries and occupational diseases, provident fund-linked insurance, retrenchment and lay- off benefits.

 

Workmen and Staff Welfare Expenses include group benefits like direct expenditure on maternity, crèches, canteen facilities, educational, cultural and recreational facilities; and grants to trade unions, co-operative stores, etc. meant for employees.

 

Total Emoluments   is defined as the sum of wages and salaries, employers’ contribution as provident fund and other funds and workmen and staff welfare expenses as defined above. 

 

Total Input  comprises total value of fuels and materials consumed as well as expenditures such as cost of contract  and commission work done by others on materials supplied by the factory, cost of materials consumed for repair and maintenance of factory's fixed assets including cost of repairs and maintenance work done by others to the factory's fixed assets, inward freight and transport charges, rates and taxes (excluding income tax), postage, telephone and telex expenses, insurance charges, banking charges, cost of printing and stationery and purchase value of goods sold in the same condition as purchased .   

 

Total Output comprises total ex-factory value of products and by-products manufactured as well as other receipts such as receipts from non-industrial services rendered to others, work done for others on material supplied by them, value of electricity produced and sold, sale value of goods sold in the same condition as purchased, addition in stock of semi- finished goods and own construction. 

 

Depreciation is consumption of fixed capital due to wear & tear and obsolescence during the accounting year and is taken as provided by the factory owner or is estimated on the basis of cost of installation and working life of the fixed assets. 

 

Net Value Added is arrived by deducting total input and depreciation from total output.

 

Presentation of Data

 

16.    The ASI results presented in the published reports relate to the factory sector i.e. industrial units covered under the census and sample sectors of the ASI.  The total of any characteristic was obtained by adding the figures of the census sector and estimates of sample sector. 

 

Present position of availability of results

 

17.    As per the National Dissemination Policy, the ASI reports   are supplied on electronic media to the Computer Centre, New Delhi which has been declared as the Data Warehouse of the Ministry of Statistics & PI for the purpose of dissemination to users on request as per the Pricing Policy fixed by the Ministry.  As per the dissemination policy, the Unit-wise data are also supplied by CSO (IS Wing), Kolkata to the Computer Centre for dissemination to users.  Of course, for Unit-wise dissemination due care is taken in suppressing identities of industrial Units as required under the Collection of Statistics Act 1953.  This is achieved by merger of data of some units in some industry groups/States/UTs when the number of units became less than three.

 

      

18.   The final results for ASI 2004-05 have already been released.  The ASI results in respect of selected characteristics are available in electronic media at various levels of aggregation, viz.

 

·      All industries by States,

·      All India X 2- digit level of NIC with rural-urban break-up,

·      All India X 2/3/4-digit level of NIC,

·      States X 2/3/4-digit level of NIC,

·      Unit level with suppressed identifications, etc.

 

19.    The following offices may be contacted for the ASI results on electronic media against payment:

 

                        I.     Deputy Director General

  Central Statistical Organisation (Industrial Statistics Wing)

               Ministry of Statistics & Programme Implementation

               1, Council House Street, Kolkata - 700 001

        Tel: 91-33-22481521; Fax: 91-33- 22483501

E-Mail: cso_isw@yahoo.co.in

 

                     II.     Deputy Director General

  Computer Center

               Ministry of Statistics & Programme Implementation

        East Block-10, R.K.Puram

        New Delhi - 110066

        Tel: 91-11-26109682; Fax : 91-11-26160652

E-Mail : ddgcc@hotmail.com