Annexure - Directorate of Economics and Statistics

April 05/2011
series using the estimated labour input engaged and the Value Added per Worker (VAPW) in the activity. For
subsequent years, the GVA estimates are extrapolated with appropriate proxy indicators relevant to the economic
activity. Therefore, for estimating the GVA for these segments of economy, data on labour input and VAPW are
required for the base year. It is pertinent to mention here that the labour input used in the national accounts relates to
the number of jobs performed in the economic activities, rather than the number of persons employed. This means
that a person performing two jobs is counted twice in the labour input procedure adopted in the national accounts.
This labour input corresponds conceptually to the labour input used in estimating the value added per worker from
the NSS enterprise surveys.
The estimates of value added are compiled at detailed activity level, known as ‘compilation categories’. These
compilation categories are determined by regrouping the economic activities at 4 and 5 digit level described in the
National Industrial Classification (NIC), 1998, which, in turn, follows the International Standards Industrial
Classification of All Economic Activities, Rev.3 (ISIC Rev.3) of the United Nations. As per the recommendations of
the Advisory Committee, the same compilation categories of 1999-2000 series have been used for the base year
2004-05 as well for the sake of comparability of the data between the two series.
The estimates of Labour Input (LI) for the public, private corporate and unorganized sectors, separately for
rural and urban areas, have been derived compilation category-wise from the results of NSS 61st round (2004-05)
of Employment Unemployment Survey (EUS) and population projections as on 1.10.2004 of the Office of the
Registrar General of India (RGI). In accordance with the decisions of the Advisory Committee, the estimates of LI
for the public, private corporate and unorganized sectors have been derived on the basis of place of work in rural
and urban areas rather than on the basis of place of residence of the workers. However, while adopting this decision,
it was observed that a number of workers had no fixed place of work. Therefore, these workers who had no fixed
place of work were redistributed on the basis of their place of residence. Yet another change made in the procedure
of estimation of labour input in the new series relates to the source of data for estimating the labour input in the
private corporate sector. Previously (till the 1999-2000 series), the labour input for this sector was estimated from
the data provided by the Directorate of Employment and Training (DET) through their Annual Employment Market
Intelligence (EMI) survey. In the new series, the labour input data for the private corporate sector has also been
estimated from the results of NSS Employment and Unemployment Survey.
For the compilation categories relating to manufacturing sector, labour input for registered sector is available
from the data of Annual Survey of Industries (ASI) in 2004-05. The estimates of labour input for unregistered
manufacturing segment covered under MSME have been derived from the ‘Fourth All India Census of Micro, Small
and Medium Enterprises (MSME), 2006-07’. The labour input for the unregistered manufacturing sector (not
covered under MSME definition) has been derived by subtracting the labour input in ASI and MSME from the total
labour input in the manufacturing activity. For all other compilation categories, the labour input has been estimated
separately for private corporate and unorganised sectors from the results of NSS 61st round (2004-05) on
Employment and Unemployment.
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