Enterprise Sample Registration: Better Tracking of Microenterprises

20 March 20251 min read

Why in the news

A proposal argues that India needs a new way to track its microenterprises because the economic census has repeatedly failed to do so reliably.

Meant to count small units with other firms every five years; also the sampling frame for informal sector surveys that estimate their GDP share.
Since the mid-1970s: poor data quality, weak NSO-state DES coordination, staff and supervision gaps.
The 7th census (2019-20) relied mainly on IT ministry-assigned Common Service Centres with little State role; output may not be published.

Option	Idea	Limit
Meta database	Combine GST and State registrations (Shops and Establishments, Cooperative Acts); give each firm a unique State ID, updated on renewal	Many units stay unregistered: roadside vendors, seasonal sellers, evening food carts
ESRS	Sample villages and urban blocks; part-time enumerators follow set activities; record births, deaths and rebirths of firms	Needs sampling, not full count

Censuses and occasional surveys cannot capture seasonal or hour-limited businesses.
Gives real-time insight into how volatile and fluid the sector is, useful to policymakers, investors and analysts.
China’s 2023 economic census shows even large industrial economies have millions of microenterprises, so India must measure them whatever its manufacturing success.

Model: Sample Registration System of the Registrar General of India (births and deaths).
Census frequency: every five years (quinquennial).

Test yourself

1. The proposed Enterprise Sample Registration System (ESRS) is modelled on which existing system?

ESRS is modelled on the SRS that tracks births and deaths.

2. How often is India's economic census meant to cover microenterprises?

The census is scheduled once in five years (quinquennial).

3. Which bodies did the 7th Economic Census (2019-20) largely use for field work, per the notes?

Most assignments went to Common Service Centres set up by the IT ministry.