ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Service Producing Manufacturing Units and Their Impact on Sectoral GDP

Manufacturing services are characterised as outsourced parts of a total production process and comprise output of those manufacturing activities that are performed on the physical inputs owned by units other than the units providing the service. According to standard industrial classifications, these are included in manufacturing. Sixty-four per cent of the unregistered manufacturing establishments in India are, in fact, engaged - more often than not solely - in providing manufacturing services. Generally, these activities are treated as "manufacturing" while estimating domestic product or supply side aggregates, but as "services" while estimating expenditure or use side aggregates. This paper presents a profile of the manufacturing services providing segment of the unregistered manufacturing sector and briefly dwells on the ambiguities inherent in the accepted definitions of "manufacturing" activities and "services". It illustrates the implications of the dual treatment in estimating sectoral distribution of domestic product and concludes that distinguishing manufacturing services from other manufacturing activities in the industrial classification might help resolve this issue as well as related problems in a wide range of applications.

Estimates of Value Added per Worker from Enterprise Surveys

Cross-validation of data collected on various parameters, through independent sets of data from alternative sources, is desirable as it enhances data credibility and enthuses confidence among data users. Such an exercise for estimates of household consumption expenditure from the consumption expenditure surveys (CES) of the National Sample Survey Organisation (NSSO) and National Accounts Statistics (NAS) is available in the literature. A similar exercise for the estimates of value added per worker derived from the results of Enterprise Surveys. The non-availability of information on value added per worker through more than one source is the reason for the paucity of such exercises. An attempt has been made in this paper to examine the feasibility of using estimates of per worker consumption expenditure available from the CES 1993-94, in which information on the activity status of members of the same households was also collected.
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