Final report of fourth all india census of msme for finance, subsidy & project related support contact - 9861458008

CONTENTS
Team of Officers i
PART I
Summary Results & Comparison v
Highlights of Sample Survey: Fourth All India Census vii
List of Statements ix
List of Graphs xii
CHAPTER
1. Introduction, Survey Design and Data Processing. 1-16
2. Review of Results: An Overview of Unregistered MSME Sector 17-32
3. Dispersion, Dominance and Economic Ratios. 33-48
4. Participation of Women in Unregistered MSME Sector. 49-52
5. Participation of Social Groups in Unregistered MSME Sector. 53-60
6. Economic Census 2005 data on economic activities not included
in Sample Survey of Unregistered Sector. 61-64
7. International Scenario of MSE sector. 65-76
PART II
Table Index 79-80
Tables 81-236
PART III
Appendix I: Distribution of FSUs by enterprise slabs 239-239
Appendix II: Copies of Office Memorandums on constitution of Steering Committee,
Sub group of Technical Sub-Committee and Administrative Sub-Committee
On Fourth Census of Micro, Small and Medium Enterprises (MSMEs) 240-247
Appendix III: Formats used for sample survey 248-259
Appendix IV: Concepts and Definitions 260-268

i
Name Designation
Shri Samarendra Sahu Addl. Development Commissioner
Shri B.N. Nanda Economic Adviser
Shri G. Sajeevan Deputy Director General
Smt. Honey C. H.
Shri L.K.Chaudhary
Deputy Director
Deputy Director
Dr Niyati Joshi
Shri A.K.Chopra
Deputy Director
Deputy Director
Shri Shivnath Singh Jadawat Assistant Director
Shri S. T. Akhtar Assistant Director
Shri I. P. Singh Assistant Director Grade II
Shri A. K. Lokhande Assistant Director Grade II
Shri P. K. Srivastava Assistant Director Grade II
Shri Khushi Ram Meena Assistant Director Grade II
Shri S.K.Paik Assistant Director Grade II
Shri D. Chakraborty Assistant Director Grade II
TEAM OF OFFICERS ACTIVELY ASSOCIATED WITH THE
REPORT: UNREGISTERED SECTOR: FOURTH ALL INDIA
CENSUS OF MSMEs 2006-07

v
FOURTH ALL INDIA CENSUS OF MICRO, SMALL AND MEDIUM
ENTERPRISES 2006-07: UNREGISTERED SECTOR
SUMMARY RESULTS & COMPARISON WITH THIRD ALL INDIA CENSUS OF
SSIs 2001-02: UNREGISTERED SECTOR
Sl. No.
Characteristics
Numbers
Percent
Third Census
(2001-02)
Fourth Census
(2006-07)
Third Census
(2001-02)
Fourth
Census
(2006-07)
1. Size of the Sector(in Lakh) 91.46 198.74 100.00 100.00
2.
Number of Rural Units(in
Lakh)
51.99 119.68 56.84 60.22
3.
Number of Urban Units(in
Lakh)
39.47 79.05 43.16 39.78
4. Enterprises(in Lakh)
Micro - 198.39 - 99.83
Small - 0.35 - 0.17
5.
Number of Women
Enterprises (in Lakh)
9.26 18.06 10.13 9.09
6. Nature of Activity (in Lakh)
Manufacturing 33.03 104.50 36.12 52.58
Repair and Maintenance 16.93 12.31 18.51 6.19
Services 41.50 81.93 45.38 41.22
7. Type of Organization (in
Lakh)
Proprietary 88.63 187.07 96.90 94.13
Partnership 1.04 2.65 1.13 1.33
Private Company 0.38 0.06 0.42 0.03
Cooperatives 0.10 0.23 0.11 0.12
Others 1.32 8.73 1.44 4.39
8. Number of Units Owned
by(in Lakh)
SC 9.44 22.61 10.32 11.38
ST 4.74 10.30 5.19 5.18
OBC 38.11 91.17 41.67 45.87
Others 39.17 74.66 42.82 37.57
9.
Number of Units Managed by
Women
8.81 17.99 9.63 9.05

vi
10. Main Source of Power(in
Lakh)
No Power Needed 38.55 76.68 42.15 38.59
Coal 2.95 3.57 3.23 1.79
Oil 5.55 10.52 6.07 5.29
LPG 0.55 1.18 0.60 0.59
Electricity 40.25 95.73 44.01 48.17
Non-Conventional Energy 0.61 0.57 0.66 0.29
Traditional Energy/Firewood 3.00 3.88 3.28 1.95
Others Nil 6.60 0.00 3.32
11 Total Employment(in Lakh) 187.69 408.84 - -
12
Total Original Value of P&M
(in ```` Crore)
24564.92 94639.60 - -
13
Per Unit Original Value of
P&M ((in ```` Lakh)
0.27 0.48 - -
14
Total Fixed Investment (in ````
Crore)
62556.60 240816.46 - -
15
Per Unit Fixed Investment (in
```` Lakh)
0.68 1.21 - -
16 Per Unit Employment 2.05 2.06 - -
17 Gross Output (in ```` Crore) 79015.36 369702.59 - -
18
Per Unit Gross Output (in ````
Crore)
0.86 1.86 - -
19
Gross Output per ```` one lakh
Fixed Investment(in ```` lakh)
1.26 1.53 - -
20
Gross Output per ```` one lakh
Original Value of P&M(in ````
lakh)
3.22 3.90 - -
21.
Employment per one lakh
Fixed Investment
3.00 1.70 - -
22.
Original Value of P&M
7.64 4.32 - -
23.
Gross Output
2.38 1.11 - -

vii
HIGHLIGHTS OF SAMPLE SURVEY RESULTS, FOURTH ALL
INDIA CENSUS MSME (2006-07): UNREGISTERED SECTOR
• All the enterprises, not permanently registered or not having filed
Entrepreneurs Memorandum II, as per Micro, Small and Medium Enterprises
Development Act, 2006 but qualifying to be doing so at District Industries
Centres as on 31.03.2007, of the State/UT, numbering 1.30 lakh were surveyed
against 1.68 lakh Small Scale Industries covered in the third census.
• Total Number of Micro and Small Enterprises (MSMEs) were estimated as
198.74 lakh. Proportion of micro and small were 99.83% and 0.17%
respectively. 104.50 lakh units (52.58%) were manufacturing enterprises,
12.31 lakh units (6.19%) were repairing and maintenance enterprises and
81.93 lakh units (41.22%) were service enterprises.
• 60.22% of enterprises are operating in Rural Sector.
• 186.24 lakh (93.71%) enterprises were found to be operating perennially
whereas share of enterprises running seasonal and casual were 6.42 lakh
(3.23%) and 4.23 lakh (2.13%) respectively.
• In terms of number of enterprises, ten States, viz., Uttar Pradesh (11.24%)
West Bengal (10.47%), Tamil Nadu (9.16%), Andhra Pradesh (7.50%),
Maharashtra (7.27%), Gujarat (6.55%), Kerala (6.51%), Madhya Pradesh
(5.79%), Karnataka (5.60%) and Orissa (4.92%) had a share of 75%.
• Per unit employment has gone up from 2.05 persons in 3rd Census to 2.06
persons. The employment per one lakh investment in fixed investment is 1.70
persons, which has gone down from 3.00 persons as compared to 3rd
Census
of Unregistered MSME.
• Data reveals that 48.17% enterprises were found to be using electricity as
main source of power whereas 38.59% enterprises were not using any kind of
fuel. The share of units using oil (petrol, diesel, etc.), coal and LPG/CNG were
5.29 %, 1.79% and 0.59% respectively.
• 9.09% units were reported to be women enterprises where as 62.43%
enterprises were found to be owned by socially backward groups, viz., SCs,
STs and OBCs. In terms of religion, 79.23% units were owned by Hindu
whereas domination of Muslim, Christian and Sikh were 12.85%, 3.25% and
3.10%, respectively.
• In terms of number of enterprises, 10 industry groups (at 2-digit level of
NIC)2004 viz., Repair of personal & household goods (15.13%), Wearing
apparel, dressing & dyeing of fur (14.85%), Food products & beverages
(11.52%), Other service activities(11.24%), Other Business Activities (6.38%),
Sale & maintenance of motor vehicles & motorcycles (6.21%), Manufacture of
furniture (5.34%), Post and Telecommunications (4.13%), Manufacture of
textiles(3.70%) and fabricated metal products except machinery &
equipment(3.53%) had a share of 82.03%.

viii
• Compared to Third Census, Fourth Census brought out some structural
changes in the unregistered MSME sector. Domination of manufacturing
enterprises among the working units has further marginally gone up from
36.12% in Third Census to 52.58% in Fourth Census. Data also reveals that
per unit employment has increased from 2.05 persons in 2001-02 to 2.06
persons in 2006-07, per unit fixed investment from 0.67 lakh to 1.21 lakh and
per unit Gross Output from 0.86 lakh to 1.86 lakh.
***

ix
LIST OF STATEMENTS
Statement
No.
Description Page
No.
1.1 Number of First Stage units (Villages / Towns) Allotted and
Surveyed by State / UT and Sector
10
1.2 Number of Enterprises by State and Sector 14
2.1 Distribution of Enterprises by Sector and type of Enterprises 17
2.2 Percentage Distribution of Enterprises by Nature of Activity 19
2.3 Percentage Distribution of Enterprises by Type of
Organisation and Sector
20
2.4 Percentage Distribution of Enterprises by Type of
Organisation and Type of Enterprise
20
2.5 Percentage Distribution of Enterprises by Sex of Owner
and Sector
21
2.6 Percentage Distribution of Enterprises by Sex of Owner
and Type of Enterprises
21
2.7 Percentage Distribution of Enterprises by Social Group of
Owner and Sector
22
2.8 Percentage Distribution of Enterprises by Social Group of the
Owner and Type of Enterprises
22
2.9 Percentage Distribution of Enterprises by Religion of Owner 23
2.10 Percentage Distribution of Enterprises by Source of
Power
23
2.11 Major State wise Distribution of Enterprises 24
2.12 Major Industry wise Distribution of Enterprises 25
2.13 DistributionofEmployment by Sector 26
2.14 Distribution of Employment by Type of Enterprises 26
2.15 Distribution of Employment by Nature of Activity 27
2.16 Distribution of Enterprises, Employment and
Average Employment per Enterprise by Sector
27
2.17 Distribution of Enterprises, Employment andAverage
Employment per Enterprise by type of Enterprises
28
2.18 Distribution of Enterprises, Employment and Average
Employment per Enterprise by Nature of Activity
28
2.19 Employment Intensity by Sector 28
2.20 Employment Intensity by type of Enterprises 29
2.21 Employment Intensity by Nature of Activity 29
2.22 Distribution of Fixed Investment by Sector 29
2.23 Distribution of Fixed Investment by type of Enterprise and 30

x
Nature of Activity
2.24 Distribution of Gross Output by Sector 30
2.25 Distribution of Gross Output by type of Enterprises and
Nature of Activity
30
2.26
Comparison between 3
rd
& 4
th
Census 32
3.1 Percentage Distribution of Major Characteristics by Sector 33
3.2 Per Unit Value of Major Characteristics by Sector 34
3.3 Employment Intensity by Sector 34
3.4 Productivity Intensity by Sector 34
3.5 Absolute Value of Major Characteristics by type of enterprise 35
3.6 Percentage Share of Major Characteristics by type of
enterprise
35
3.7 Absolute Value of Major Characteristics by Sector and type
of enterprise
36
3.8 Percentage Share of Major Characteristics by Sector and type
of enterprise
36
3.9 Per unit value of important Economic Parameters by
type of enterprise
37
3.10 Employment Intensity by type of
enterprise
37
3.11 Productivity by type of enterprise 37
3.12 Dominance of States in terms of Number of Enterprises 38
3.13 Dominance of States in terms of Employment 39
3.14 Dominance of States in terms of Gross Output 39
3.15 Dominance of States in terms of Fixed Assets 40
3.16 Dominance of States in terms of Investment in P&M 40
3.17 Percentage Distribution of Enterprises by Type of Industry 41
3.18 Percentage Distribution of Employment by type of Industry 43
3.19 Percentage Distribution of Gross Output by type of Industry 44
3.20
Percentage Distribution of Market Value of Fixed Assets by
Type of Industry 45
3.21 Percentage Distribution of Original Value of Plant &
Machinery by type of Industry
46
4.1 Participation of Women in Management /Ownership in
Unregistered MSME Sector, State-wise
49
4.2 Percentage Share of the Principal Characteristics of
Enterprises managed by Women in the Unregistered MSME
Sector
50
4.3 Employment of Females in MSME Sector, State-wise 51
5.1.1 An overview of MSE sector among Social Group 53
5.1.2 An overview of MSE sector among Social Group (percentage 53

xi
Share)
5.2.1 An overview of MSME sector by Social group and Religion 54
5.2.2 An overview of MSME sector by Social group and Religion
(Percentage Share)
54
5.3 Distribution of Enterprises by Social Group 55
5.4 Distribution of Enterprises by Religious Group 55
5.5.1 An Overview of Employment among Social Group 55
5.5.2 An overview of Employment among Social Group
(Percentage Share)
56
5.6.1 An overview of Employment among Religious Group 56
5.6.2 An overview of Employment among Religious Group (
Percentage Share )
57
5.7.1 Top 10 Industry group (NIC 2 Digit) by Owner's Category 57
5.7.2 Top 10 Industry group (NIC 2 Digit) by Owner's Category
(Percentage share)
58
5.8.1 Top 10 Industry group (NIC 2 Digit) by Owner's Religion 58
5.8.2 Top 10 Industry group (NIC 2 Digit) by Owner's Religion
(Percentage share)
59
6.1 State-wise Distribution of Enterprises and Employment data
extracted from EC-2005 as economic activities excluded from
Sample Survey Unregistered Sector Fourth All India Census
of MSME
61
6.2
NIC-2004 Class-wise (4-digit) Distribution of Enterprise and
Employment data extracted from EC 2005 as economic
activities excluded from Sample Survey of Unregistered
Sector Fourth All India Census of MSME
62
7.1 Status of MSME in United Kingdom, 2009 65
7.2 Status of MSME in United States of America, 2011 67
7.3 Status of MSME in Netherlands Antilles, 2011 68
7.4 Status of MSME in Argentina, 2011 69
7.5 Status of MSME in Australia, 2011 70
7.6 Status of MSME in Austria, 2011 71
7.7 Status of MSME in Chile, 2011 72
7.8 Status of MSME in China, 2011 73
7.9 Status of MSME in Nepal, 2006-07 74
7.10 Status of MSME in South Africa, 2011 75

xii
List of Graphs
Sl.
No.
LIST OF GRAPHS PAGE No.
2.6 Percentage Distribution of Enterprises by Sector 18
2.7 Percentage Distribution of the Enterprises by type of
Enterprises
18
2.8 Percentage Distribution of Enterprises by Nature of Activity 19
2.10 Percentage Distribution of Enterprises by Type of Organisation
and type of Enterprises
20
2.13 Percentage Distribution of Ownershipby SocialCategory 22
2.16 Percentage Distribution of Enterprises by Source of Power 24
2.19 Percentage Share of Employment by Sector 26
2.20 Percentage Share of Employment by type of Enterprises 26
2.22 Per Enterprises Employment 27

1
CHAPTER I
INTRODUCTION
1.1 Enterprises generate income and engage in its distribution by undertaking
economic activities. They account for a large part of the economic activities
in the National Economy and operate in agricultural and non-agricultural
segments of economy.
1.2 Micro, Small and Medium Enterprises (MSME) defined by Micro, Small and
Medium Enterprises Development (MSMED) Act, 2006, relate to all
enterprises engaged in production of goods pertaining to any industry
specified in first schedule of Industrial (D&R) Act, 1951 & other enterprises
engaged in production and rendering of services subject to limiting factor of
investment in plant & machinery and equipment respectively.
For manufacturing sector, an enterprise is classified as:
(a) micro enterprise, if investment in plant and machinery does not
exceed twenty five lakh rupees;
(b) small enterprise, if investment in plant and machinery is more than
twenty five lakh rupees but does not exceed five crore rupees; or
(c) medium enterprise, if investment in plant and machinery is more than
five crore rupees but does not exceed ten crore rupees;
In case, enterprise is engaged in providing or rendering services, it is
classified as:
(a) Micro enterprise, if investment in equipment does not exceed ten lakh
rupees;
(b) Small enterprise, if investment in equipment is more than ten lakh
rupees but does not exceed two crore rupees; or
(c) Medium enterprise, if investment in equipment is more than two crore
but does not exceed five crore rupees.
1.3 As defined, MSME sector spans the entire non-agriculture segment of
National Economy. Implementation of MSMED Act, 2006 brought different
components of the economy hitherto classified under Small Scale Industries
(SSIs), Small Scale Business Sector Enterprises (SSBSEs), Village & Cottage
industries together and expanded the scope of MSME sector substantially
resulting in high degree of heterogeneity. The sector is characterized by its
spread to each village / town and all segments of Non-agricultural sector of
the economy. The diffusion of self employed / own account entrepreneurs
and household enterprises that organize economic activity in a tiny and
informal manner at the bottom end of scale of activity is other domineering
feature of the sector. These informal sector activities are numerous in
number but tiny in terms of their contribution of economic indications at
enterprise level.
1.4 Depiction of activity verticals, in relation to its contribution to Gross
Domestic Product, is given below.

2
1. Medium Enterprises, Manufacturing Sector (Investment in Plant & Machinery more than Rs.500
lakh but not exceeding Rs 1000 lakh)
2. Small Enterprises, Manufacturing Sector (Investment in Plant & Machinery more than Rs. 25 lakh
but not exceeding Rs 500 lakh)
3. Micro Enterprises, Manufacturing Sector (Investment in Plant & Machinery less than Rs. 25
lakh)
4. Medium Enterprises Services Sector (Investment in Equipment more than Rs. 200 lakh but not
exceeding Rs 500 lakh)
5. Small Enterprises Services Sector (Investment in Equipment more than Rs. 10 lakh but not
exceeding Rs 200 lakh)
6. Micro Enterprises, Services Sector (Investment in Equipment Less than Rs. 10 lakh)
1.5 Out of ` 61.33 lakh crore Gross Domestic Product (GDP), accounted for in
National Economy during the year 2009-10, ` 38.90 lakh crore pertain to the
segments where MSME would be operating. Contribution to GDP by
enterprises, limited by investment levels specified for manufacturing and
Services sector, would fall under the scope of MSME sector.
Database on SSI/MSME Sector Prior to Fourth All India
Census of MSME (2006-07)
1.6 Development Commissioner (DC, MSME) is entrusted with the responsibility
of collection of data pertaining to SSI/MSME sector. It has conducted four
Censuses of the registered sector. Third Census and Fourth Census had
provision to cover data pertaining to Unregistered Sector on sample survey
basis. First Census was conducted in 1973-74 in respect of 2.58 lakh SSI units
registered up to 30-11-1973. During this Census, only 1.4 lakh units were

3
found to be working. Second Census was conducted during 1990-92 in
respect of 9.87 lakh SSI units registered up to 31-3-1988. During this Census,
only 5.82 lakh units were found working. Third Census, for the first time,
surveyed unregistered SSI sector, in addition to the registered sector.
Registered sector covered, on complete enumeration basis, all units
registered permanently up to 31.3.2001. A total of 22.62 lakh units were
surveyed; out of which, 13.75 lakh units were found to be working.
Unregistered sector was surveyed using a two-stage stratified sampling
design adopting first stage units of villages in rural area and urban frame
blocks in urban area. 19,579 rural villages and urban blocks were surveyed to
identify the units of the unregistered sector. Size of the unregistered sector
was estimated to be 91.46 lakh units.
Fourth All India Census of Micro, Small & Medium
Enterprises (2006-07)
1.7 Enactment of the MSMED Act, 2006 is one of the many important measures
by the Government of India in its continued effort as a part of its planned
approach to nurse and develop the erstwhile SSIs, Cottage and Village
Industries, Traditional Industries like Coir, Khadi and Silk on one hand and
encourage other non-agricultural and service related activities which need
special care on the other. As explained earlier, definitional changes expanded
the scope and coverage under MSME sector in an unprecedented manner.
Another policy initiative of the Ministry, Promotional Package of the
Ministry for Micro and Small Enterprises (2007), provided for a scheme for
strengthening of the database. Office of the DC, MSME launched Fourth All
India Census of MSME, which happened to be the first attempt to assess the
magnitude and features of the newly defined MSME sector in May 2008.
Objectives
1.8 Mainobjectivesofthe Census were: -
(a) To strengthen the database for MSME sector - statistics and information to
be collected in respect of number of units, employment, production,
extent of closure/sickness and other relevant economic parameters
pertaining to micro, smallandmediumenterprises.
(b) Data onenterprises ownedand/or managedby women.
(c) To collect the information on Khadi and Village Industry units set-up
under Rural Employment Generation Programme (REGP) & Coir sector
units and the units registered under Prime Minister's Rozgar Yojana
(PMRY) Scheme.
(d) To estimate size of the unregistered MSME sector, including Khadi &
Village Industries (KVIC) andCoir Industries.
Processes Adopted
1.9 A Steering Committee was constituted under the Chairmanship of Secretary,
M/o Micro, Small and Medium Enterprises to decide on all aspects relating to

4
the conduct of Fourth All India Census with the following broad terms of
reference of the Committee:
- Examining the deficiencies in existing frame of registered SSI units and
recommending:
• Objectives and approach for FourthCensus
• Definition, Methodology andformatsto be used
• Data collection, processing andtabulationmechanisms
• Costsinvolvedat eachstage ofthe Census
• Measures to be taken for eliciting better co-operation from the
informants and coordination among the Central & State level
functionaries, including advertisement and publicity measures.
• Stepsto be takeninfuture to avoidexisting deficiencies inthe frame
• To direct conduct of Census by addressing to administrative,
technical, financial and other related aspects.
1.10 The Steering Committee constituted two Sub-Committees, one on technical
matters under the Chairmanship of Director General & Chief Executive
Officer, National Sample Survey Office, M/o Statistics & Programme
Implementation (MOSPI) and the other on administrative matters and
implementation/ monitoring, under the Chairmanship of Additional
Secretary & Development Commissioner (MSME), to look into various
aspects in detail and accord approvals. The Sub-Committee on technical
matters constituted a Sub-Group of the Technical Sub-Committee, under the
Chairpersonship of the Additional Development Commissioner, MSME to
decide the sampling design, multiplier, data validation and tabulation.
Copies of the order constituting the Steering Committee, Sub-Committee and
Sub-group of the technical Sub-Committee are enclosed in the Appendix II,
Part III. These Committees formulated methodology and operational
guidelines for conducting the FourthAllIndia CensusofMSME.
1.11 As in the Third All India Census of SSIs, Fourth All India Census had both
Registered and Unregistered Sectors under its coverage. For the purpose of
the conduct of the Fourth All India Census, Registered Sector was defined as
on 31.03.2007:
(i) All enterprises registered/having filed Entrepreneurs Memorandum
(EM II) in District Industries Centers (DICs) in the State/UTs.
(ii) Enterprises registered with KVIC.
(iii) Enterprises registered with Coir Board.
(iv) Factories registered under section 2m(i) and 2m(ii) of the Factories
Act, 1948, as per frame list of Annual Survey of Industries(ASI) to
capture units having investment from ` 1 to ` 10 crore) as available
with National Sample Survey Office, M/o Statistics and Programme
Implementation as on 31.3.2006.

5
MSME, which are not forming part of Registered Sector were defined
to constitute the Unregistered Sector. The criteria of demarcation
between the scope and coverage of the Registered and the
Unregistered are as noted below:
Registered Sector Unregistered Sector
Definitional Difference in Scope and Coverage of Fourth All India Census of
MSME.
Enterprises registered up to
31.03.2007 with the following agencies
were detailed through complete
enumeration:
1. All District Industries Centres
in the State/UTs
2. KVIC
3. Coir Board
Units covered under registered
sector include manufacturing
and service sector including
retail, wholesale trade and
hotels and restaurants
4. Under section 2m(i) and 2m(ii)
of the Factories Act 1948 of ASI
to capture units having
investment from ` 1 to ` 10
crore as available with National
Sample Survey Office, M/o
Statistics &P.I. as on 31.03.2006
All non agricultural enterprises
subject to the definitions as per
MSMED Act, 2006, which were
eligible for registration/obtaining EM
II as on 31.03.2007 but were not
registered/not having filed EM II.
Activities excluded in Sample
Survey conducted as part of Fourth All
India Census of MSME.
Retail / Wholesale Trade
Establishment
General Merchandized Stores
Sale Outlets for industrial
components
Legal Services
Educational Services
Social Services
Hotels & Restaurants
Transport
Storage & Warehousing (except
Cold Storage)
1.12 The process adopted for the data collection in both the Registered and the
Unregistered sectors are different. In registered sector, while it was decided
to have complete enumeration of all the enterprises as per the list of the
frame, in case of the Unregistered Sector, sample survey technique was
resorted to. The complete enumeration of the Registered Sector and sample
survey of the Unregistered sector were carried out sequentially.
1.13 Based on the data collected during All India Census and supplemented by
the data extracted from Economic Census (EC, 2005), conducted by Central
Statistics Office, Ministry of Statistics and Programme Implementation
(MOSPI), two publications have been brought out.

6
i. ‘Quick Results: Fourth All India Census of Micro, Small and
Medium Enterprises 2006-07’
Estimates for this publication were based on preliminary results
obtained from complete enumeration data collected from
Registered Sector and data obtained from EC, 2005. There were
261.01 lakh enterprises employing 594.61 lakh persons. 51.77
percent were rural enterprises and 10.10 percent enterprises were
managed by women, while 81.76 percent males and 18.24 percent
women were employed in these enterprises. This report was
published in the year 2009.
ii. ‘Final Report Fourth All India Census of Micro, Small and
Medium Enterprises 2006-07: Registered Sector’
This publication brought out an in-depth analysis of data collected
on complete enumeration basis from 22.48 lakh enterprises falling
under Registered Sector as on 31.03.2007. The report highlighted
the operational characteristics of the 15.64 lakh enterprises, its
distribution over Sectors and States. For the first time, the detailed
features of the Registered MSME were bought out in this report.
This report was published in the year 2011.
1.14 The data collected from Unregistered Sector MSME on sample survey basis,
were analyzed and presented in this report. The chapterisation of this report
also, follows the pattern of ‘Final Report Fourth All India Census of Micro,
Small and Medium Enterprises 2006-07: Registered Sector’. Two additional
chapters, one on EC, 2005 data on economic activities not included in Sample
Survey of Unregistered Sector as decided by the Sub-Group of the Technical
Sub-Committee and another on International Scenario of MSE Sector are added.
The report is structured with seven Chapters. While Chapter I on
‘Introduction, Survey Design and Data Processing’ gives an overview of MSME
database and Fourth All India Census, 2006-07, Chapter II presents the
review of survey results. Chapter III attempts to examine the dispersion,
dominance and economic ratios. Chapter IV & V examine participation of
Women and Social Group categories in Unregistered Sector respectively.
Chapter VI presents data extracted from EC, 2005 on economic activities on
which data could not be collected on Sample Survey basis. Chapter VII gives
SME/MSME data sets on select countries.
Concepts Definitions, Sampling Design and Data Processing
Definition of MSME
1.15 The definition of the MSME subsequent to implementation of the MSME
Development Act, 2006 is as noted below. The Central Government, in
exercise of the powers conferred by Sub-Section (1) of Section 7 of Micro, Small
and Medium Enterprises Development Act, 2006 after having obtained the
recommendations of the Advisory Committee under Sub- section (4) of Section
7 of the Act in this regard, notified the following enterprises, whether
proprietorship, Hindu undivided family, association of persons, co-

7
operative society, partnership or undertaking or any other legal entity, by
whatever namecalled as:-
(i) In case of enterprises engaged in manufacturing or production of goods
pertaining to any industry specified in the First Schedule to the Industries
(Development and Regulation) Act, 1951, as:-
(a) A micro enterprise, where the investment in plant and machinery
does not exceed twenty five lakhrupees;
(b) A small enterprise, where the investment in plant and machinery is
more than twenty five lakh rupees but does not exceed five crore
rupees; or
(c) A medium enterprise, where the investment in plant and machinery
is more than five crore rupeesbut doesnot exceedtencrorerupees;
(ii) Incase ofthe enterprisesengagedinproviding or rendering ofservices :-
(a) A micro enterprise, where the investment in equipment does not
exceedtenlakh rupees;
(b) A small enterprise, where the investment in equipment is more than
ten lakh rupees but doesnot exceedtwo crore rupees; or
(c) A medium enterprise, where the investment in equipment is more
thantwo crore rupees but doesnot exceedfive crorerupees.
With the revised definition of MSME, Fourth Census was initiated by the
Office of DC, MSME, which happened to be the first attempt to assess
magnitude and features of the newly defined MSME Sector as mentioned
earlier. The demarcation into Registered and Unregistered Sectors were as
noted in Para-1.11, Chapter I. The objectives and the outcomes already
achieved are as stated in the Para-1.8 and 1.13 of Chapter I.
1.16 Fourth All India MSME wasconductedunder the following broadparameters:-
(i) A complete list of enterprises registered under various organizations to
be prepared, avoiding duplication, called Registered Sector, for complete
enumerationofestablishments.
(ii) Enterprises not covered under the Registered Sector pertaining to MSME
Sector were coveredon a sample basis under UnregisteredSector.
Unregistered Sector: Scope and Coverage
1.17 Coverage of the newly defined MSME sector was substantially expanded by
inclusion of all enterprises with investment in Original Value of plant and
machinery upto ` 10 crore in manufacturing sector and ` 5 crore in services
sector.
All unregistered enterprises of both manufacturing and service sector
constitute unregistered MSME sector. Unregistered enterprises are defined as
‘All enterprises engaged in the activities of manufacturing or in
providing/rendering of services, not registered permanently or not filed EM
with State Directorates of Industries/ District Industries Centres on or before
31-3-2007 are called unregistered enterprises’.
In addition,

8
a) All the enterprises that are not registered under section 2m(i) or 2m(ii)
of Factory Act on or before 31-3-2006 with CIF/IF of the State/UTs as
well as SDIs/DICs (permanently/temporarily) as also the enterprises
that are registered after 31-3-2006 till the date of survey with CIF/IF of
the States/UTs and not registered with SDIs/DICs upto 31-3-2007 till
the date of survey will be treated as unregistered for the purpose of
this survey.
b) All the Khadi & Village and Coir Industries that are not registered on
or before 31-3-2007 with KVIC/KVIB/Coir Board, SDIs/DICs and
section 2m(i) or section 2m(ii) of Factory Act will be treated as
unregistered for the purpose of this survey.
In order to keep continuity with the coverage of Third All India Census of SSI
(Unregistered Sector), following activities were excluded from the Fourth All
India Census of Micro, Small & Medium Enterprises 2006-2007 : Registered
Sector.
• Retail / Wholesale Trade Establishment
• General Merchandized Stores
• Sale Outlets for industrial components
• Legal Services
• Educational Services
• Social Services
• Hotels & Restaurants
• Transport
• Storage & Warehousing (except Cold Storage)
The total no. of enterprises which were excluded from the survey was 147.38
lakh as per Economic Census 2005.
1.18 Sampling Design, Selection of the First and Second Stage Units
• Sample survey was adopted in Unregistered Sector as against
complete enumeration adopted in Registered Sector. To ensure that
sufficient number of unregistered enterprises is covered through the
survey for obtaining valid estimates, it was felt necessary that area
frame be used.
• To reach the enterprises of Unregistered Sector universe, Multi-Stage
Stratified Sampling procedure was adopted.
• Villages in rural area and towns in urban area were the first stage
units (fsu) of the survey programme.
• Selected enterprises in the selected villages/towns were the second
stage units (ssu) of survey.
1.19 Stratification
The stratification of districts was done on the basis of total number of
enterprises as per EC 2005. The enterprise slabs for stratification of districts
into five strata are as given in the Appendix I, Part III.

9
• Rural areas covered 598 districts which consisted of 6,38,619 villages
out of which 12783 sample villages were selected for survey.
• Urban areas covered 591 districts which consisted of 5170 towns out of
which 568 towns were selected for survey
MSME relevant enterprises. In each State, districts were grouped into 5
strata on the basis of MSME relevant enterprises reported in the district as
per provisional data of EC 2005 both for rural and urban Sectors.
The criteria for stratification of districts for both Rural and Urban areas
are:
Stratum 1: All districts with MSME relevant enterprises up to 5000
Stratum 2: All districts with MSME relevant enterprises up to 5001-
10000
Stratum 3: All districts with MSME relevant enterprises up to
10001-15000
Stratum 4: All districts with MSME relevant enterprises up to
15001-20000
Stratum 5: All districts with MSME relevant enterprises > 20000
1.20 Village /Town Frame
• Village/ Town Frame of EC, 2005 was considered for stratification and
selection.
• The Village frame consisted of more than 6,38,619 lakh villages.
• The Town frame consisted of more than 5,170 towns.
• In the first stage, in the selected fsu (villages/towns), door to door visit
was made to list out all the non-agricultural enterprises and MSME.
The list so prepared was used for selection of enterprises for survey.
• In the second stage, MSMEs were selected out of the list of MSME
prepared for each fsu.
1.21 Sample Village/Town Selection
• There were five strata into which districts were stratified
• 2% of the villages were selected in rural areas in each stratum.
• Thus 12783 villages were selected for survey.
• One town was selected from each district in urban area.
Accordingly, the number of the villages/towns selected for survey and those
surveyed are as per the following Statement No. 1.1
1.22 Selection of First Stage Unit (FSU) and Second stage Stratification
The FSUs were selected by sample random sampling without replacement,
both for rural and urban areas.
Second-stage stratification was resorted to in selected FSUs. Door to door
survey was carried out in each of the FSUs selected for survey for listing of
MSMEs. The MSMEs listed were stratified into second-stage stratum I and II
on the basis of enterprises being engaged in manufacturing or services
sectors respectively.

10
Statement No 1.1 Number of First Stage units (Villages / Towns) Allotted and
Surveyed by State / UT and Sector
Number of Village/town
State
/ UT
Code
State / UT Name
Rural Urban ALL
Allotted Surveyed Allotted Surveyed Allotted Surveyed
1 Jammu And Kashmir 133 117 14 12 147 129
2 Himachal Pradesh 403 196 10 10 413 206
3 Punjab 255 196 17 16 272 212
4 Chandigarh 5 0 1 0 6 0
5 Uttarakhand 336 151 13 12 349 163
6 Haryana 139 130 19 18 158 148
7 Delhi 3 3 8 8 11 11
8 Rajasthan 828 669 31 31 859 700
9 Uttar Pradesh 2150 1771 69 65 2219 1836
10 Bihar 902 882 37 35 939 917
11 Sikkim 9 0 4 0 13 0
12 Arunachal Pradesh 81 32 8 6 89 38
13 Nagaland 26 19 8 3 34 22
14 Manipur 48 0 4 3 52 3
15 Mizoram 16 0 7 5 23 5
16 Tripura 3 2 4 4 7 6
17 Meghalaya 121 73 6 5 127 78
18 Assam 525 305 23 19 548 324
19 West Bengal 816 772 18 18 834 790
20 Jharkhand 654 431 18 12 672 443
21 Odisha 1027 682 30 29 1057 711
22 Chhattisgarh 406 360 16 14 422 374
23 Madhya Pradesh 1108 939 44 41 1152 980
24 Gujarat 371 353 24 24 395 377
25 Daman & Diu 5 7 2 2 7 9
26 Dadra & Nagar Haveli 5 5 1 1 6 6
27 Maharashtra 876 755 33 33 909 788
28 Andhra Pradesh 563 444 23 23 586 467
29 Karnataka 588 565 27 26 615 591
30 Goa 7 7 2 2 9 9
31 Lakshadweep 5 0 1 0 6 0
32 Kerala 27 31 13 13 40 44
33 Tamil Nadu 326 337 28 28 354 365
34 Puducherry 5 5 4 4 9 9
35
Andaman & Nicobar
Islands 11 1 1 1 12 2
All India 12783 10240 568 523 13351 10763

11
1.23 Sample Enterprise Selection
• Door to door survey was conducted in each of the villages/town
selected for survey, for listing the MSME.
• In villages, if the total number of MSME were less than 15, all of them
were surveyed.
• In villages with more than 15 total numbers of MSME, selection was
resorted to limit the survey of MSME to 15.
• In case of towns, if the total number of MSME were less than 20, all of
them were surveyed.
• In towns with more than 20 total number of MSME, selection was
resorted to limit the survey of enterprises to 20.
• Altogether 1.26 lakh MSME were surveyed in Unregistered sector by
the above process.
1.24 Training and the Field Work
The training of trainers (TOTs) for Fourth Census on MSME, Unregistered
Sector was conducted at various locations, with the help of State Directorate
of Industries and MSME-Development Institutes. TOTs were conducted
during June-July, 2009. The enumerators were trained to identify all the
visible non-agricultural enterprises and listing the unregistered MSME in the
selected villages in the rural areas and towns in the urban areas. The findings
of the listing operation would be furnished in Format-II (Appendix III, Part
III) by the enumerators. Out of the listed MSME, a few MSME as mentioned
above were selected randomly and were surveyed. Details of the selected
MSME were to be recorded in Format III (Appendix III, Part III);
Survey Instruments
Schedulesof Enquiry
1.25 During the Survey for the Unregistered sector, schedules of enquiry
contained three formats, which were used by enumerators for data
collection. These were Format II, Format III and Format IV. In addition,
Standardized Working Sheet were also made available together with
Instruction to Field Staff for data collection. These formats are given in Part
III. Computerized Data Preparation was adopted in respect of Format II and
Format III and was used for data validation purpose. Details of the formats are
given as under:

12
Sl.
No.
Form
at
No.
Description of Schedules of
Enquiry
Remarks
1. II Format for summarizing the
listing of unregistered MSME
This was filled in respect
of all the micro, small &
medium enterprises of
unregistered sector (list
frame).
2. III Questionnaire for unregistered
sector
unregistered sector for
survey.
3. IV Working Sheet for listing
Unregistered Micro, Small and
Medium Enterprises operating
in Fixed Premises
unregistered sector (for
fixed premises).
4. V Working Sheet to calculate
Gross output, Total Input, Gross
Value Added and Net Worth
unregistered sector
(calculation sheet).
Programme of Work
1.26 SDIs identified manpower separately for data enumeration, coding and
supervision. Each of the Data Enumerators was assigned the survey work in
a few unregistered MSME. Data Enumerators collected information from
selected enterprises in prescribed Formats on voluntary basis. Data
Inspectors were assigned the responsibility of coding in respect of economic
activity and products/services. Data Enumerators submitted all the filled-in
formats, in respect of work assigned to them, to the concerned Data Inspectors.
In all the formats filled-in by Data Enumerators, appropriate codes were
filled by Data Inspectors in respect of States, Districts, Villages, Towns,
Economic Activities and Commodities. Supervisors conducted on-the-spot
checks on working of the enumerators and provided guidance to them. They
also supervised the work of Data Inspectors. All the filled-in formats coded
by Data Inspectors were scrutinized by Supervisors. Norms were prescribed
for the work of these functionaries. State/UT Directorates of Industries (SDIs)
drew staff from other departments like State Statistical Bureaus, Agriculture
Department, Health Departments etc. to man these activities. State

13
Directorates of Industries and Development Institutes-MSME opened
coordination and liaison cells in their offices for smooth conduct of the
Census work. Nodal officers were also appointed at all levels to sort out field
problems expeditiously. Supervisors checked the entries in Formats-II using
Formats-III. All the filled-in formats in suitable batches, were sent to S&D
Division, O/o DC,MSME at New Delhi, immediately after completion of
fieldwork.
1.27 While entering the numerals in the formats, only “Arabic Numerals” were
used. The system of State Codes and District Codes developed by the Office of
Registrar General and Census Commissioner was adopted in Fourth Census.
Also, National Industrial Classification-2004(NIC-2004), based on
International Standard Industrial Classification (ISIC), introduced recently by
Central Statistics Office (CSO), was used for classifying economic activities.
The system of commodity codes being used by National Sample Survey
Office (NSSO) in their surveys, called 'A Standard Industrial Commodity
Classification 2000' (ASICC 2000) was enlarged to include reserve products
and other important SSI products and was used in Third Census. The same
ASICC code book was used in Fourth Census.
1.28 Conforming to the work programme mentioned above for the Sample
Survey of Unregistered Sector, all the filled-in formats in suitable batches,
were sent to S&D Division, O/o DC,MSME at New Delhi, immediately after
completionof fieldwork.
Data Processing of the Unregistered Sector:
1.29 ICR technology, which is known for its speed and accuracy, was used in Fourth
Census for preparation of data. The project of Fourth Census data preparation
was entrusted to M/s Image Infosys. This company executed the project along
with its partners but did not complete the data processing of the un-
registered sector which was subsequently outsourced to M/s. Pravidhi India
by tendering process for data processing including data scrutiny. Further, the
finalization of the dataset and generation of the reports was entrusted to NIC
recruited manpower who have generated the reports.
1.30 Second Stage Units Surveyed (Enterprises)
A total number of 1,26,169 enterprises with 71,996 from rural areas and
54,173 from urban areas were surveyed. 2145 records pertaining to retail
trade (With NIC 2004 division code 52 except for group code 5260 i.e. repair
and maintenance of household goods), 524 records pertaining to Hotel and
Restaurant (With NIC 2004 division code 55), 405 records pertaining to
Transport & Storage and Warehousing except cold storage (With NIC 2004
division code 60 and 63), 746 records pertaining to NIC 2004 division codes
02, 05, 10, 12, 13, 14 and major group code 111 of division 11 were excluded.
Data for the States- Sikkim (11) - rural and urban, Lakshadweep (31) - rural
and urban, Chandigarh (4) rural and urban and Manipur (14) - rural and
Mizoram (15) - rural were added from the fields of unit wise records of EC
2005 as available. The number of such records added was 24513. The total
records in the data set are 1,50,682. Distribution of the enterprise level data

14
based on which this report has been finalized, sector-wise and State-wise are
given below.
Statement No. 1.2: Number of Enterprises in Database by State
and Sector
Sl.
No. State / UT Name Rural Urban All
1 Jammu and Kashmir 612 539 1151
2 Himachal Pradesh 725 624 1349
3 Punjab 1372
1881 3253
4 Chandigarh 749 22093 22842
5 Uttarakhand 671 300 971
6 Haryana 1201 2245 3446
7 Delhi 22 261 283
8 Rajasthan 4457 3665 8122
9 Uttar Pradesh 10565 6899 17464
10 Bihar 6902 2437 9339
11 Sikkim 60 1065 1125
12 Arunachal Pradesh 124 82 206
13 Nagaland 126 24 150
14 Manipur 336 26 362
15 Mizoram 90 173 263
16 Tripura 20 473 493
17 Meghalaya 355 350 705
18 Assam 1205 685 1890
19 West Bengal 8451 2067 10518
20 Jharkhand 1784 608 2392
21 Odisha 3922 2987 6909
22 Chhattisgarh 2159 954 3113
23 Madhya Pradesh 5739 9493 15232
24 Gujarat 3424 3322 6746
25 Daman & Diu 35 203 238
26 Dadra & Nagar Haveli 12 50 62
27 Maharashtra 4286 3183 7469
28 Andhra Pradesh 3839 1584 5423
29 Karnataka 4935 2624 7559
30 Goa 38 111 149
31 Lakshadweep 37 83 120
32 Kerala 505 2187 2692
33 Tamil Nadu 4455 3631 8086

15
34 Puducherry 49 474 523
35
Andaman and Nicobar
Islands 6 31 37
All India 73268 77414 150682*
*1,26,169 Format III and 24,513 EC 2005 data records.
1.31 Multiplier and Table Generation
Estimation Procedure-Theoretical
Let ‘p’ stand for sector (p = 1to 2)
‘q’ stand for State (q = 1 to 35)
‘r’ stand for stratum no. (r = 1 to 5)
‘s’ stand for first stage unit within a given p, q, r.
‘t’ stand for second stage within a given p, q, r, s (t = 1, 2).
‘u’ stand for second stage unit within a given p, q, r, s, t.
Let ‘N’ stand for the number in the population (town/village) with the
above suffixes.
‘n’ stand for the number surveyed in the sample with the above
suffixes.
‘X’ stand for the total of a variable/ characteristic in the sample.
Npqr = No. of villages/ towns in the population for a given p, q, r.
Let npqr = No. of villages/ towns surveyed in the sample in a given p, q, r.
The Multiplier at fsu level, i.e., for a given p, q, r, s is computed as
(Npqr / npqr ).
Let xpqrstu = Value of any variable/ characteristic for a given p, q, r, s, t, u.
Estimate of the variable total for the population of enterprises at all India
level
∑ pqrstu (Npqr / npqr )* (Npqrst / npqrst ) xpqrstu
(Npqr / npqr )* (Npqrst / npqrst ) is the multiplier at fsu level. Before calculating
this multiplier, adjustment was made in Npqrst to cover total non-response
at sub-stratum level, where not even a single selected enterprise could be
surveyed, the corresponding size of the sub-stratum was added to the size of
the other sub-stratum. The multiplier so calculated was appended to the data
file of fsu at unit level.
Limitations of the Data:
1.32 At the record level, it was found that in some records, important information
such as original value of plant and machinery, gross output, exports etc. were
not reported. In certain other cases information needed for multiplier
computation at fsu level were also missing. This may have arisen due to non-

16
response or preference bias. In order to partially mitigate the extent of non-
response/preference bias in respect of FSU, average of the stratum value were
taken for multiplier computation. At enterprise level, average of the same
activity of the relevant fields like original value of plant and machinery, gross
output, exports etc. at stratum level were used to impute missing values. In
both rural and urban areas at FSU levels, the enumeration of MSME by door
to door visits was found to be practically difficult in certain cases especially
for large towns, which could have resulted in underestimation. Two sources
used for estimating missing values were EC 2005 and neighboring
stratum/substratum pertaining to unregistered sector. From the EC 2005,
information like employment, ownership of the enterprises and NIC have
been taken from similar stratum at NIC-4 digit. For variables Gross output,
Total input, Gross Value Added(GVA) and Net Worth for which data was
available for the years 2006-07, 2007-08, 2008-09, the data reported for latest
year is presented in the report.
1.33 Concepts, definitions and technical specifications adopted in the Census
are given in Part III.
***

17
CHAPTER II
REVIEW OF RESULTS:
AN OVERVIEW OF UNREGISTERED MSME
SECTOR
2.1 Planning for Fourth All India Census of Micro, Small and Medium
Enterprises 2006-07 coincided with a significant development in evolution of
small sector, i.e. enactment of MSMED Act in 2006, which broadened the
scope of sector to include all the non-agricultural enterprises including
medium enterprises falling within the stipulated investment limits. Hence,
the frame for Fourth Census of registered enterprises was enlarged to include
enterprises registered with KVIC/KVIB, Coir Board and under section 2m(i)
& 2m(ii) of Factories Act, 1948 apart from the enterprises permanently
registered with District Industries Centres (DICs) as against Third Census,
which included in its frame only permanently registered enterprises with
DICs. Thus, in Fourth Census, all the enterprises which were not eligible for
registration /having filed EM II as on 31-03-2007 but were not registered /not
having filed EM II & also all non–agricultural enterprises subject to the
definition as per MSMED Act, 2006 were surveyed under unregistered
enterprises.
2.2 A total number of 1,50,682 enterprises, 73,268 from rural areas and 77,414
from urban areas were surveyed. Subsequent to the decision of the sub group
of Technical sub-committee on Fourth census of Micro, Small and Medium
Enterprises (MSMEs) to append records from Economic Census 2005
database, for the States/UTs, for which data could not be collected. Therefore
the total no of records available for the purpose of generation of this record
are 1.50 lakhs.
Status of Operation of Enterprises
2.3 All the surveyed enterprises were found to be working at the time of survey
except for the units which could not be visited which were 415 in numbers.
2.4 Response of all the working units to the initiative of data collection was not
uniform. Out of 1.30 lakh enterprises approached for data collection, 0.04 lakh
enterprises comprising only a small percentage (i.e. 2.95%) did not provide the
required data.
Distribution of Enterprises
Statement No. 2.1: Distribution of Enterprises by Sector and type of Enterprises
(in lakh)
Sector Micro Small Total % Share
Rural 119.61 0.07 119.68 60.22
Urban 78.78 0.27 79.05 39.78
All 198.39 0.35 198.74 100.00

18
2.5 Urban areas with 78.78 lakh Micro enterprises accounted for 39.78% of the
total enterprises in MSME sector whereas rural areas accounted for 119.61
lakh Micro enterprises (i.e. 60.22% of the enterprises in MSME sector). Rural
areas increased its share of enterprises from 56.84% in 3rd Census to 60.22%
in 4th Census. Correspondingly, there was a small decline in the share of
urban areas from 43.16% in 3rd Census to 39.78% in 4th Census.
Percentage Distribution of Enterprises by Sector
2.6 Micro segment with 198.39 lakh enterprises, accounted for 99.83% of
enterprises of MSME unregistered sector. The micro segment, thus
dominated MSME sector in terms of number of enterprises. Small segment of
0.38 lakh enterprises accounted for 0.17% enterprises in MSME unregistered
sector.
Percentage Distribution of the Enterprises by Type of Enterprises
2.7 Micro segment dominated in both Sectors. Thus, the micro segment accounted
for 99.94% of the enterprises of MSME sector located in rural areas and
99.65% in urban areas, whereas Small segment accounted for only 0.06% and
0.35% of total enterprises in rural and urban areas respectively. Details are at
Table No.1.1 to 1.3 Part-II.

19
Nature of Activity
2.8 The classification of enterprises by nature of activity indicated that 52.58%
enterprises were engaged in manufacturing activity, 41.23% of enterprises
were engaged in services and 6.19% engaged in repairing and maintenance.
Percentage distribution of enterprises by nature of activity is presented in
Statement No. 2.2. Details are at Table No.3.1 to 3.3, Part II.
Statement No. 2.2: Percentage Distribution of Enterprises by Nature of Activity
Nature of Activity
No. of
Enterprises(lakh)
% Share
Manufacturing 104.50 52.58
Services 81.93 41.23
Repairing & Maintenance 12.31 6.19
All 198.74 100.00
Type of Organisation
2.9 There is dominance of proprietary enterprises in Unregistered MSME
sector. Out of 198.74 lakh enterprises, as high as 94.13% are
proprietary concerns. Only 1.33% MSMEs are partnership concerns.
There are negligible private companies and cooperatives in MSME
sector (0.03% and 0.12 respectively).Rural-Urban distribution by type
of organization shows that the dominance of proprietary concerns is
true both in case of rural areas and urban areas. Thus, the proprietary
concern constituted 94.54% of enterprises in rural areas and 93.51% in
urban areas. (Statement No. 2.3). Detailed reference is at Table No. 5.1
to 5.3, Part II.

20
Statement No. 2.3: Percentage Distribution of Enterprises by Type of Organization
and Sector
Sector Proprietary Partnership
Private
Co.
Co-
operative
Others
Not
Recorded
Rural 94.54 1.03 0.02 0.13 1.26 3.03
Urban 93.51 1.79 0.05 0.10 1.37 3.18
All 94.13 1.33 0.03 0.12 1.30 3.09
2.10 Analysis of the distribution of enterprises by type of organization in the two
segments of MSME sector reveals that the complete dominance of proprietary
enterprises is true only in case of micro segment (94.16% of micro enterprises
are proprietary concerns). In case of small segment, the distribution of
enterprises in different ownership categories is relatively even. In case of
small enterprises, 77.17% are proprietary concerns, 3.37% partnership
concerns and 8.76% private companies. There is a very little activity in
cooperative set-up of each of the two segments of MSME sector. Thus, there
are only 3.88% in small segment and 0.11% in the micro segment Co-operative
setup (Statement No. 2.4).
Statement No. 2.4: Percentage Distribution of Enterprises by Type of Organization
and Type of Enterprise
Type of Enterprises Proprietary Partnership Private Co. Co-operative Others NR
Micro 94.16 1.33 0.02 0.11 1.29 3.10
Small 77.17 3.37 8.76 3.88 6.54 0.28
All 94.13 1.33 0.03 0.12 1.30 3.09
Percentage Distribution of Enterprises by Type of Organisation and type of
Enterprises

21
Type of Ownership of Enterprises
Ownership by Sex of Owner
2.11 There is dominance of males in ownership of MSME. Thus, for Unregistered
MSME sector as a whole, male owned 90.44% of enterprises as compared to
9.09% owned by female and 0.47% enterprises showed missing ownership.
There is no significant deviation in this pattern in urban and rural areas,
although the dominance of man-owned enterprises is slightly more
pronounced in urban areas as compared to rural areas (92.49% ascomparedto
89.09%)(Statement No. 2.5). Details reference at Table No. 7.1 to 7.3.
Statement No. 2.5: Percentage Distribution of Enterprises by Sex
of Owner and Sector
Sector Male Female NR
Rural 89.09 10.69 0.22
Urban 92.49 6.67 0.84
All 90.44 9.09 0.47
2.12 Dominance of male in ownership was all pervading and hence true in each
of the two segments of MSME sector, although it was relatively less
pronounced in case of micro segment. Thus, male owned 90.43% of
enterprises in micro segment while 96.81% of enterprises were owned by
them in small segment (Statement No. 2.6).
Statement No. 2.6: Percentage Distribution of Enterprises by Sex of Owner by Type of
Enterprises
Type of Enterprises Male Female NR
Micro 90.43 9.10 0.47
Small 96.81 3.01 0.18
All 90.44 9.09 0.47
2.13 Ownershipby SocialCategory
The socially backward groups owned almost bulk of MSME which was
owned by OBCs (45.87%). Representation of SC and ST owners in MSME
sector was low at 11.38% and 5.18% respectively. The aforesaid pattern of
ownership by socially backward groups was true, by and large, both in rural
and urban areas. Thus, in rural areas, almost 67.84% of MSME were owned
by the socially backward groups, of which 70.69% belonged to the backward
classes. In urban areas, almost 54.24% belonged to the socially backward
groups, of which, 78.75% belonged to the OBCs. (Statement No. 2.7). Detailed
reference is at Table No. 7.1 to 7.3, Part II.

22
Statement No. 2.7: Percentage Distribution of Enterprises by Social Group of
Owner and Sector
Sector SC ST OBC Other NR
Rural 12.83 7.06 47.96 30.81 1.35
Urban 9.18 2.34 42.72 43.66 2.10
All 11.38 5.18 45.87 35.92 1.65
Percentage Distribution of Ownership by Social Category
2.14 The analysis of enterprises owned by socially backward groups in each of the
two segments of MSME sector reveals that micro sector had more than 62%
of enterprises owned by socially backward groups, whereas small sector had
28% of enterprises owned by socially backward groups, respectively. OBC
entrepreneurs dominated in both segments of Micro & Small sector
(Statement No. 2.8).
Statement No. 2.8: Percentage Distribution of Enterprises by Social Group of the
Owner and Type of Enterprises
Type Of
Enterprises
Type of Social Group
SC ST OBC Other NR
Micro 11.39 5.19 45.91 35.86 1.65
Small 2.17 0.36 25.06 70.82 1.59
All 11.38 5.18 45.87 35.92 1.65
Ownership by Religion
2.15 Ownership of enterprises by religion of the owner indicates that 79.23% of
the enterprises were owned by Hindus. Muslims owned 12.85% of the
enterprises followed by Christian at 3.25%. Percentage distribution of
enterprises by religion of owner is presented in Statement No. 2.9. Detailed
reference is at Table No. 12.1 to 12.3, Part II.

23
Statement No. 2.9: Percentage Distribution of Enterprises by Religion of Owner
Religion of Owner
No. of
Enterprises(lakh)
% Share
Hindu 157.45 79.23
Muslim 25.54 12.85
Sikh 6.16 3.10
Christian 6.46 3.25
Jain 0.34 0.17
Buddhist 0.36 0.18
Others 1.68 0.84
Not recorded 0.75 0.38
All 198.74 100.00
MainSource of Power
2.16 Main source of power for the enterprises was electricity and 48.17% of
enterprises used electricity. Only 0.29% of enterprises used non-conventional
energy as a source of power. There were 38.59% enterprises which did not
use any power. Statement No. 2.10 presents the percentage distribution of
enterprises by source of power. Detailed reference is at Table No. 13.1 to 13.3,
Part II.
Statement No. 2.10: Percentage Distribution of Enterprises by Source of Power
Source of Power
No. of
Enterprises(lakh)
% Share
No Power 76.68 38.59
Coal 3.57 1.79
Oil 10.52 5.29
LPG/CNG 1.18 0.59
Electricity 95.73 48.17
Non-Conventional Energy 0.57 0.29
Traditional Energy Firewood 3.88 1.95
Others 3.66 1.84
Not Recorded 2.95 1.48
All 198.74 100.00

24
Percentage Distribution of Enterprises by Source of Power
State-wise Distributionof Enterprises
2.17 State of Uttar Pradesh had the largest number of enterprises with a share of
11.24% in All India while West Bengal (10.47%) was second. This was
followed by Tamil Nadu and Andhra Pradesh which were marginally
behind, with a total share of 9.16% and 7.50% respectively. Top 10 states in
terms of number of enterprises accounted for a total share of 75% while
remaining 25 States/UTs accounted for 25% share. State wise
distribution of enterprises is given in Statement 2.11. Detailed reference is at
Table No. 1.1 to 1.3, Part II.
Statement No. 2.11: Major State -wise Distribution of Enterprises
Sl. No. State/ UT Name
No. of
Enterprises(lakh)
% Share
1 Uttar Pradesh 22.34 11.24
2 West Bengal 20.80 10.47
3 Tamil Nadu 18.21 9.16
4 Andhra Pradesh 14.90 7.50
5 Maharashtra 14.45 7.27
6 Gujarat 13.03 6.55
7 Kerala 12.94 6.51
8 Madhya Pradesh 11.50 5.79
9 Karnataka 11.12 5.60
10 Odisha 9.77 4.92
Total of above ten States 149.06 75.00
Others 49.68 25.00
All 198.74 100.00

25
Industry-wise Distributionof Enterprises
2.18 Activities of unregistered MSME were captured under various economic
activity classes using National Industrial Classification-2004 (NIC-2004),
published by Central Statistics Office, M/o Statistics and Programme
Implementation, during conduct of Fourth All India Census.
The classification system provides for different levels of aggregation starting
from NIC five-digit level. At five digit level of NIC, enterprises were
identified in the lowest level of disaggregation. Information was collected on
each of the enterprises to facilitate classification of the units under various
economic activities pursued by them at different levels of disaggregation. In
terms of aggregation at two digit level, 82.05% of the enterprises were
accounted for by top 10 of the total number of classes of economic activities.
(a) Retail Trade and repair of personal and household goods and (b) Wearing
Apparels accounted for 15.13% and 14.85% of enterprises, respectively. These
were the two relatively bigger industry groups in that order in 4th All India
Census. Top ten activities in terms of number of enterprises are noted below
in Statement No. 2.12. Detailed reference is at Table No. 2.1 to 2.3, Part II.
Statement No. 2.12: Major Industry- wise Distribution of Enterprises
NIC
2004
Description
No. of
Enterprises(lakh)
% Share
52 Retail Trade, Except Of Motor Vehicles And Motorcycles; Repair Of Personal
And Household Goods. 30.06 15.13
18 Manufacture Of Wearing Apparel; Dressing And Dyeing Of Fur 29.52 14.85
15 Manufacture Of Food Products And Beverages 22.89 11.52
93 Other Service Activities 22.34 11.24
74 Other Business Activities 12.69 6.38
50
Sale, Maintenance And Repair Of Motor Vehicles And Motorcycles; Retail
Sale Of Automotive Fuel 12.34 6.21
36 Manufacture Of Furniture; Manufacturing N.E.C. 10.62 5.34
64 Post And Telecommunications 8.21 4.13
17 Manufacture Of Textiles 7.36 3.70
28
Manufacture Of Fabricated Metal Products, Except Machinery And
Equipment 7.02 3.53
Total of above ten industry groups 163.06 82.03
Others 35.68 17.97
All 198.74 100.00
Employment
2.19 Unregistered MSME sector provided employment to 408.84 lakh persons.
Rural areas had a share of 57.26% and urban areas had a share of 42.74%
(Statement No. 2.13). Detailed reference is at Table No. 15.1 to 15.3, Part II.

26
Statement No. 2.13: Distribution ofEmployment by Sector
Sector Employment(lakh) % Share
Rural 234.09 57.26
Urban 174.75 42.74
All 408.84 100.00
Percentage share of Employment by Sector
2.20 Micro segment dominated by accounting for 99.19% of the total employment
in Unregistered MSME sector followed by small segment (0.81%) respectively
(Statement No. 2.14).
Statement No. 2.14: Distribution of Employment by Type of Enterprise
Type of Enterprise Employment(lakh) % Share
Micro 405.52 99.19
Small 3.32 0.81
All 408.84 100.00
2.21 Manufacturing enterprises contributed the most to the total employment in
Unregistered MSME sector by accounting for 58.51% of the total employment

27
in the sector followed by services (35.80%) and repair & maintenance (5.69%)
(Statement No. 2.15)
Statement No. 2.15: Distribution of Employment by Nature of Activity
Nature of Activity Employment(lakh) % Share
Manufacturing 239.20 58.51
Services 146.39 35.80
Repairing & Maintenance 23.25 5.69
All 408.84 100.00
Per UnitEmployment
2.22 Average employment generated by unregistered MSME sector is estimated at
2.06 per enterprise. This is higher than the average employment of
unregistered SSI enterprises in 3rd Census (2.05). Rural areas reported a
lower average (1.96 per enterprise) as compared to the urban areas (2.21 per
enterprise) (Statement No. 2.16).
Statement No. 2.16: Distribution of Enterprises, Employment and
Average Employment per Enterprise by Sector
Sector
No. of
Enterprises(lakh)
Employment(lakh)
Per Enterprise
Employment
Rural 119.68 234.09 1.96
Urban 79.05 174.75 2.21
All 198.74 408.84 2.06

28
2.23 Average employment provided by small enterprises was much
higher (9.60 per enterprise) as compared to micro enterprises (2.04 per
enterprise) respectively (Statement No. 2.17).
Average Employment per Enterprise by type of Enterprise
Type of Enterprise
No. of
Enterprises(lakh)
Employment(lakh)
Average
Employment
Per Enterprise
Micro 198.39 405.52 2.04
Small 0.35 3.32 9.60
All 198.74 408.84 2.06
2.24 Per enterprise employment in manufacturing activity was 2.29 service activity
was 1.79 andforrepair andmaintenance activity was1.89.
Average Employment per Enterprise by Nature of Activity
Nature of Activity
No. of
Enterprises(lakh)
Employment(lakh)
Average
Employment
Per Enterprise
Manufacturing 104.50 239.20 2.29
Services 81.93 146.39 1.79
Repairing & Maintenance 12.31 23.25 1.89
All 198.74 408.84 2.06
EmploymentIntensity
2.25 Employment intensity of unregistered MSME sector is estimated at 169.77
when measured in terms of employment per unit (crore) of fixed investment
while the value becomes 432.00 when measured in terms of employment per
unit (crore) of original value of P & M. The unregistered MSME sector in
rural areas reported much higher employment intensity as compared to
urban areas. (Statement No. 2.19).
Statement No. 2.19: Employment Intensity by Sector
Sector Employment
(Lakh)
Fixed Investment
(Crore)
Employment/
Fixed Investment
(Crore)
Employment/
Original Value of
P&M(Crore)
Rural 234.09 107293.93 218.17 494.39
Urban 174.75 133522.53 130.88 369.52
All 408.84 240816.46 169.77 432.00

29
2.26 Employment intensity of micro segment (179.29 persons per crore of fixed
investment) is substantially higher as compared to small sector (22.68).
Similar trend is observed when it is estimated using variable of original value
ofP& M. (Statement No. 2.20).
Statement No. 2.20: Employment Intensity by Type of Enterprise
Sector Employment(Lakh)
Fixed
Investment
(Crore)
Employment/
Fixed
Investment(Crore)
Employment/
Original Value
of P&M(Crore)
Micro 405.52 226174.82 179.29 478.83
Small 3.32 14641.64 22.68 33.37
All 408.84 240816.46 169.77 432.00
2.27 Employment intensity of manufacturing enterprises in unregistered MSME
sector was higher (187.60 persons per crore of fixed investment) as compared
to service enterprises (153.49) and repairing and maintenance enterprises
129.64), respectively. Similar trend is observed when it is estimated using
variable of originalvalue ofP& M. (Statement No. 2.21)
Statement No. 2.21: Employment Intensity by Nature of Activity
Nature of Activity Employment(Lakh)
Fixed
Investment
(Crore)
Employment/
Fixed
Investment(Crore)
Employment/
Original
Value of
P&M(Crore)
Manufacturing 239.20 127506.02 187.60 463.50
Services 146.39 95377.69 153.49 439.86
Repairing & Maintenance 23.25 17932.76 129.64 238.42
All 408.84 240816.46 169.77 432.00
FixedInvestment
2.28 Fixed investment in unregistered MSME sector is estimated at ` 240816.46
crore. Urban areas dominated in terms of share of fixed investment with
55.45% of the total fixed investment of un-registered MSME sector. The share
of rural areas was 44.55% (Statement No. 2.22).
Statement No: 2.22: Distribution of Fixed Investment by Sector
Sector
Fixed Investment
(```` in crore)
% Share
Rural 107293.93 44.55
Urban 133522.53 55.45
All 240816.46 100.00

30
2.29 Micro segment with a share of 93.92% of the total fixed investment of
unregistered MSME sector accounted for the largest share of total fixed
investment followed by small segment (6.08%). Manufacturing enterprises
accounted for a high share of fixed investment in unregistered MSME sector
(52.95%) followed by service enterprises (39.60%) and repairing and
maintenance enterprises (7.45%) (Statement No. 2.23).
Statement No. 2.23: Distribution of Fixed Investment by Type of Enterprise and
Nature of Activity
Nature of Activity
Fixed Investment (in Crore)
Micro Small Total % Share
Manufacturing 120026.24 7479.78 127506.02 52.95
Services 91247.23 4130.45 95377.69 39.60
All 226174.82 14641.64 240816.46 100.00
(% Share) 93.92 6.08 100.00
Grossoutput
2.30 MSME Sector reported a total of `369702.59 crore in terms of Gross Output.
Rural areas had a share of 56.17% and urban areas 43.83% (Statement No
2.24).
Statement No. 2.24: Distribution of Gross Output by Sector
Sector
Gross Output
(```` in Crore)
% Share
Rural 207674.40 56.17
Urban 162028.19 43.83
All 369702.59 100.00
2.31 Micro segment dominated the gross output by providing 87.87% of the total
of the gross output as compared to 12.13% in small segment. Manufacturing
enterprises dominated in terms of share of gross output of unregistered MSME sector
with 68.01% share followed by service enterprises and repairing and maintenance
enterprises (26.37% and5.62%), respectively (Statement No. 2. 25).
Statement No. 2.25: Distribution of Gross Output by type of Enterprises and
Nature of Activity
Nature of Activity
Gross Output (in ```` Crore)
Micro Small Total % Share
Manufacturing 212933.34 38504.61 251437.95 68.01
Services 92702.36 4788.79 97491.15 26.37
All 324872.78 44829.81 369702.59 100.00
(% Share) 87.87 12.13 100.00

31
Comparisonbetween 3
rd
Censusand4
th
Census
2.32 Scope of 4th Census was expanded as compared to 3rd Census by inclusion
of the medium enterprises and enlargement of services to include all non-
agricultural service enterprises, in conformity with the new definition as
enshrined in MSMED Act, 2006. Further, the definition of small enterprises
underwent a significant change over the two periods (3rd and 4th Census)
through upward revision of the investment limit of small manufacturing
enterprises from ` 1 crore to ` 5 crore and small service enterprises to ` 2
crore. Therefore, the results of 3rd Census and 4th are not strictly
comparable. At best, some comparability can be established between SSI
sector of the 3rd Census and MSE (Micro and Small Enterprises) Sector,
subject to the qualification that there is an upward shift in the investment
limit of small sector in 4th
Census.
2.33 Thus, there has been an increase in the number of enterprises and
employment both in MSE sector and MSME sector in 4th
Census as compared
to 3rd Census (Statement No. 2.26). The increase in these parameters in 4th
Census can partly be explained in case of MSME sector through the increase
in investment limit (thereby covering more enterprises and relatively large
sized enterprises).
2.34 There is an increase in per enterprise investment (both in P&M and Fixed
Assets), employment and output in 4th Census in respect of both registered
MSE sector and MSME sector as compared to the registered SSI sector of 3rd
Census. However, increase in per unit values in 4th Census over 3rd Census
has more to do with the size of enterprises (resultant of the upward increase
in investment limits) than with the efficiency. Thus, both the efficiency
parameters, i.e. employment intensity (employment per unit of fixed
investment) and productivity (output per unit of fixed investment) in respect
of unregistered MSE sector and MSME sector show improvement in 4th
Census as compared to the registered SSI sector of 3rd Census (Statement No.
2.26).
Statement No. 2.26: Comparison between 3
rd
& 4
th
Unregistered Census
Sl No Characteristics 3rd Census 4th Census
1 Size of Sector(In Lakh) 91.46 198.74
2 Employment (In Lakh) 187.69 408.84
3 Number of Women Enterprises (In Lakh) 9.26 18.06
4 Percentage of Rural Enterprises 56.84% 60.22%
5 Per Unit Employment 2.05 2.06
6 Per Unit Fixed Investment(In Lakh) 0.67 1.21
7 Per unit Original Value of Plant & Machinery (In Lakh) 0.26 0.48
8 Per unit Gross Output(In Lakh) 0.86 1.86
9
Value of Gross output per one Lakh investment in Fixed
Assets(In Lakh) 1.27 1.54
10 Employment per one Lakh fixed Investment 3.05 1.70
***

33
CHAPTER III
DISPERSION, DOMINANCE
& ECONOMIC RATIOS
Sectoral Distribution
Share of Rural and Urban Areas in Unregistered MSME Sector
3.1 Rural areas had a larger share of unregistered MSME sector as compared to
urban areas in respect of enterprises, employment, gross output and urban
areas were dominated by original value of plant & machinery and market
value of fixed asset. Thus, rural area accounted for almost 60% of the total
number of enterprises and their share contributing almost 57% of
employment, 50% of investment in plant and machinery, 45% in fixed assets and
56% in gross output of the total Unregistered MSME Sector However, in urban
areas with more than 39% of the enterprises contributing to almost 50% of
investment in P&M, 55% in fixed investment, 43% of employment and 44% of
the output of unregistered MSME sector, urban area also contributed
reasonably well to the growth of MSME sector (Statement No. 3.1).
Statement No. 3.1: Percentage Distribution of Major
Characteristics by Sector
Sector Enterprises Employment
Original Value
of P & M
Market Value
of Fixed
Assets
Gross Output
Rural 60.22 57.26 50.03 44.55 56.17
Urban 39.78 42.74 49.97 55.45 43.83
All 100 100 100 100 100
Economic Ratios
Per unit values
3.2 Per unit value of each of the major parameters such as employment,
investment in plant & machinery, fixed investment and gross output was
differing in urban areas as compared to rural areas. Thus, the average size of
unregistered enterprises (in terms of fixed investment, urban areas were
almost double of that in rural areas). The differentials were more pronounced
in respect of output and investment particularly (Statement No. 3.2).

34
Statement No. 3.2: Per Unit Value of Major Characteristics by Sector
Sector Employment
Original Value of
P & M (lakh)
Market Value
of Fixed
Assets (lakh)
Gross Output
(lakh)
Rural 1.96 0.40 0.90 1.74
Urban 2.21 0.60 1.69 2.05
All 2.06 0.48 1.21 1.86
EmploymentIntensity
3.3 Unregistered MSME sector was found to be more employment intensive in
rural areas as compared to urban areas. This is reflected in all the two
employment intensity parameters, i.e., employment per unit of investment
(both investment in P&M and fixed investment) and employment per unit of
output. Employment intensity of unregistered MSME in rural areas,
measured in terms of employment per unit of fixed investment, is more than
one and half times of that of urbanareas(Statement No. 3.3).
Statement No. 3.3: Employment Intensity by Sector
Sector
Emp./P&M
(Crore)
Emp./Fixed
Assets(Crore)
Emp./Output(Crore)
Rural 494.39 218.17 112.72
Urban 369.52 130.88 107.85
All 432.00 169.77 110.59
Productivity
3.4 Unregistered MSME sector was found to be more productive (measured in
terms of gross output per fixed investment) in rural areas as compared to
urban areas. Thus, the unregistered MSME sector in rural areas produced
goods/services worth ` 1.94 lakh per one lakh fixed investment as compared
to ` 1.21 lakhinurbanareas(Statement No. 3.4)
Statement No. 3.4 : Productivity intensity by Sector
Sector
Market Value of
Fixed
Assets(Crore)
Gross
Output(Crore)
Gross
Output/Fixed
Assets
Gross Output/Original
Value of P & M
Rural 107293.93 207674.40 1.94 4.39
Urban 133522.53 162028.19 1.21 3.43
All 240816.46 369702.59 1.54 3.91

35
Distribution by Type of Enterprise
Share of Micro & Small Enterprises
3.5 Micro segment with 99.83% of enterprises of unregistered MSME sector was
the most dominant segment in terms of number of enterprises. This segment
also accounted for the largest and a very dominant share of employment
(99.19%) of unregistered MSME sector. Further, the micro segment with
87.87% share of gross output, 93.92% share of Fixed Assets and 89.49% share
of investment in P&M dominates in the other important parameters of the
Unregistered MSME Sector. Thus, micro segment was a very important
segment of MSME sector in terms of all important parameters of the
Unregistered MSME sector. Small segment, although accounted for less than
1% of enterprises in unregistered MSME sector, had a significant share in
investment (both P&M and fixed assets) and gross output of Un-registered
MSME sector. (Statement No. 3.5 & 3.6).
Statement No. 3.5: Absolute Value of Major Characteristics by Type of Enterprise
Type of
Enterprise
No. of
Enterprises
(Thousand)
Employment
(Thousand)
Original Value
of
P&M(Crore)
Market Value of
Fixed
Assets(Crore)
Gross Output
(Crore)
Micro 19839.13 40551.86 84689.51 226174.82 324872.78
Small 34.57 332.02 9950.09 14641.64 44829.81
All 19873.71 40883.88 94639.60 240816.46 369702.59
Statement No. 3.6 Percentage Share of Major Characteristics by Type of Enterprise
Type of
Enterprise
Enterprises Employment
Original Value
of
P&M
Market Value of
Fixed
Assets
Gross
Output
Micro 99.83 99.19 89.49 93.92 87.87
Small 0.17 0.81 10.51 6.08 12.13
All 100.00 100.00 100.00 100.00 100.00
Rural and Urban Share
3.6 Micro segment is the dominant segment in terms of its share in number of
enterprises and employment, both in urban and rural areas, dominance being
more pronounced in the rural areas. Thus, in rural areas micro segment
accounted for 99.94% of the units and 99.52% of employment and in urban
areas it accounted for 99.65% of the units and 98.75% of employment. This
segment accounted for the highest share of output in urban area (95.35%) and
second highest share in rural areas (82.04%). The micro segment, quite large in
terms of its share in number of enterprises as compared to small segment in
both rural and urban areas, had highest share in investment in P&M and fixed

36
capital amongst both segments, both in rural and urban areas (Statement No.
3.7 & 3.8).
Statement No. 3.7: Absolute Value of Major Characteristics by Sector & type of
enterprise
No. of
Enterprises
(Thousand)
Employment
(Thousand)
Original
Value of
P&M(Crore)
Market Value
of Fixed
Assets(Crore)
Gross
Output
(Crore)
RURAL
Micro 11961.27 23295.35 43455.38 100610.09 170372.28
Small 7.14 113.27 3892.85 6683.84 37302.12
Total 11968.41 23408.62 47348.22 107293.93 207674.40
URBAN
Micro 7877.87 17256.51 41234.14 125564.72 154500.51
Small 27.43 218.75 6057.25 7957.80 7527.69
Total 7905.30 17475.26 47291.38 133522.53 162028.19
Statement No. 3.8: Percentage Share of Major Characteristics by Sector & Type of
enterprise
Enterprises Employment
Original
Value of
P&M
Market Value
of Fixed
Assets
Gross
Output
RURAL
Micro 99.94 99.52 91.78 93.77 82.04
Small 0.06 0.48 8.22 6.23 17.96
Total 100.00 100.00 100.00 100.00 100.00
URBAN
Micro 99.65 98.75 87.19 94.04 95.35
Small 0.35 1.25 12.81 5.96 4.65
Total 100.00 100.00 100.00 100.00 100.00
Economic Ratios
Per unit Values
3.7 Analysis of per unit value of major economic parameters - employment,
investment and output - of the two segments of unregistered MSME sector
reveals that the per unit values graduate upwards (as expected) when we
move upward in the ladder from micro to small. However, it is important to
note that the upward movement from each segment to the other segment is
rather steep in respect of all economic parameters, underlining the marked
heterogeneity both within and in-between each of the two segments of
unregistered MSME sector. Other important observation relates to the fact
that average size of units (in terms of investment in plant and machinery) is
significantly smaller in case of micro as well as small segment ( ` 0.43 lakh and

37
` 28.78 lakh respectively) as compared to the respective investment limits
allowed in MSMED Act, 2006 (` 25 lakh and ` 5 crore, respectively). In fact,
per unit investment (P&M) of these two segments is much lower when
compared to even the respective service sector limits (` 10 lakh and ` 2 crore)
under the MSMEDAct, 2006 (Statement No. 3.9).
Statement No. 3.9: Per unit value of important economic
parameters by Type of Enterprise
Type of
Enterprise
Employment
Original Value
of
P & M (lakh)
Market Value of
Fixed
Assets (lakh)
Gross Output
(lakh)
Micro 2.04 0.43 1.14 1.64
Small 9.60 28.78 42.35 129.67
All 2.06 0.48 1.21 1.86
Employment Intensity
3.8 Micro segment of MSME sector is the most employment-intensive segment
measured in terms of all the three measures of employment intensity
(employment per unit of investment in P&M, employment per unit of fixed
investment and employment per unit of output). In fact, micro segment is far
ahead of small segment, in each of the three measures of employment
intensity. Employment intensity of micro segment is in the range of eight to
fifteen times (in terms of the three employment intensity indicators) vis- à-vis
thesmall segment. (Statement No. 3.10).
Statement No. 3.10: Employment Intensity by Type of Enterprise
Type of Enterprise
Employment/
Original Value of
P&M(Crore)
Employment/
Fixed Assets(Crore)
Employment/
Gross Output(Crore)
Micro 478.83 179.29 124.82
Small 33.37 22.68 7.41
All 432.00 169.77 110.59
Productivity
3.9 Productivity measured in terms of gross output per ` 1 lakh of fixed
investment, the small segment was most productive (3.06) followed by
micro (1.44) (Statement No. 3.11).
Statement No 3.11: Productivity by Type of Enterprise
Type of
Enterprise
Market Value of
Fixed
Assets(Crore)
Gross
Output(Crore)
Gross
Output/Fixed
Assets
Gross
Output/Original
Value of P & M
Micro 226174.82 324872.78 1.44 3.84
Small 14641.64 44829.81 3.06 4.51
All 240816.46 369702.59 1.54 3.91

38
Dominance in terms of Number of Enterprises
3.10 Uttar Pradesh, with 22.34 lakh enterprises, accounted for the highest number of
unregistered MSMEs in the country followed by West Bengal (20.80 lakh
unregistered MSMEs). Each of these states had a share of 11.24% and 10.47%
respectively, of the total number of enterprises in the country. First four
states, in descending order of number of MSME, Uttar Pradesh, West
Bengal, Tamil Nadu & Andhra Pradesh accounted for more than 38% of the
unregistered MSMEs in country. First ten states, in descending order of
dominance, in terms of number of unregistered MSME, are given in Statement
No. 3.12.
Statement No. 3.12: Dominance of States in terms of Number of Enterprises
Sl. No. State/UT Name
No. of Enterprises
Lakh %
1 Uttar Pradesh 22.34 11.24
2 West Bengal 20.80 10.47
3 Tamil Nadu 18.21 9.16
4 Andhra Pradesh 14.90 7.50
5 Maharashtra 14.45 7.27
6 Gujarat 13.03 6.55
7 Kerala 12.94 6.51
8 Madhya Pradesh 11.50 5.79
9 Karnataka 11.12 5.60
10 Odisha 9.77 4.92
Total 149.06 75.00
Dominance in terms of Employment
3.11 West Bengal, with 54.93 lakh of employment, although is not the State with
highest number of enterprises, but has the distinction of generating highest
number of employment in unregistered MSME sector of the country. The
State accounts for 13.44% of total employment generated by unregistered
MSME sector in the country followed by Uttar Pradesh and Tamil Nadu with
12.66% and 9.51% percent share, respectively. Ten dominant states of the
country, in terms of employment generation in the unregistered MSME
sector, are given in (Statement No. 3.13). Six out of these 10 states had a share
of employment which is larger than its share in the number of enterprises,
which is a pointer to the fact that these states have been experiencing
comparatively more labour intensive growth of MSME sector.

39
Statement No. 3.13: Dominance of States in terms of Employment
No. of Enterprises Employment
Lakh % Lakh %
1 West Bengal 20.80 10.47 54.93 13.44
2 Uttar Pradesh 22.34 11.24 51.76 12.66
3 Tamil Nadu 18.21 9.16 38.89 9.51
4 Andhra Pradesh 14.90 7.50 35.15 8.60
5 Kerala 12.94 6.51 26.98 6.60
6 Maharashtra 14.45 7.27 24.72 6.05
7 Karnataka 11.12 5.60 22.58 5.52
8 Gujarat 13.03 6.55 21.97 5.37
9 Odisha 9.77 4.92 21.94 5.37
10 Madhya Pradesh 11.50 5.79 17.32 4.24
Total 149.06 75.00 316.24 77.35
Dominance in terms of Gross Output
3.12 West Bengal, with ` 51973.44 crore worth of production, accounting for 14.06%
of the total production in MSME sector, occupies top position in terms of
volume of output in the country followed by Kerala and Tamil Nadu in that
order. Top ten states in terms of production in unregistered MSME sector in
descending order is given in Statement No. 3.14. It may be mentioned that
although West Bengal accounts for the highest share of output in MSME
sector (14.06%), it has a corresponding higher share of total number of
enterprises (10.47%). This is a pointer to the fact that the composition of
enterprises is more skewed in favour of relatively large-sizedenterprises.
Statement No. 3.14: Dominance of States in terms of Gross Output
No. of Enterprises Gross Output
Lakh % crore %
1 West Bengal 20.80 10.47 51973.44 14.06
2 Kerala 12.94 6.51 50699.08 13.71
3 Tamil Nadu 18.21 9.16 39988.26 10.82
4 Uttar Pradesh 22.34 11.24 37024.52 10.01
5 Andhra Pradesh 14.90 7.50 28302.56 7.66
6 Punjab 9.66 4.86 19525.78 5.28
7 Gujarat 13.03 6.55 16868.47 4.56
8 Maharashtra 14.45 7.27 16159.47 4.37
9 Karnataka 11.12 5.60 15257.34 4.13
10 Odisha 9.77 4.92 14329.34 3.88
Total 147.21 74.07 290128.27 78.48

40
Dominance in terms of Fixed Assets
3.13 Tamil Nadu with ` 34528.18 crore of fixed assets, which accounts for 14.34% of
total fixed assets of the unregistered MSME sector, clearly dominated the
country, in terms of fixed assets. West Bengal was second in terms of share in
fixed investment with 11.65% share. There is, however, a small differential
between the fixed assets shares of Kerala and West Bengal (almost 0.38%
points), pointing also to the nearing dominance of West Bengal and Tamil
Nadu in terms of fixed assets. Share of 10 dominant states in terms of fixed
assets of unregistered MSME sector in descending order is given in
Statement No. 3.15.
Statement No 3.15 : Dominance of States in terms of Fixed Assets
No. of Enterprises Fixed Assets
Lakh % crore %
1 Tamil Nadu 18.21 9.16 34528.18 14.34
2 West Bengal 20.80 10.47 28053.84 11.65
3 Kerala 12.94 6.51 27136.43 11.27
4 Uttar Pradesh 22.34 11.24 22495.02 9.34
5 Andhra Pradesh 14.90 7.50 21005.47 8.72
6 Gujarat 13.03 6.55 14884.85 6.18
7 Punjab 9.66 4.86 14261.90 5.92
8 Maharashtra 14.45 7.27 13575.87 5.64
9 Karnataka 11.12 5.60 12342.38 5.13
10 Rajasthan 9.14 4.60 9294.17 3.86
Total 146.57 73.75 197578.10 82.05
Dominance in terms of Investment in P&M
3.14 In consonance with the pattern of dominance in case of fixed assets,
Tamil Nadu also dominated the country in terms of its share in investment in
Plant and Machinery with a share of 12.83% followed by Kerala and Andhra
Pradesh, with shares of 11.29% and 10.54% respectively. First ten states in
terms of investment in plant and machinery in descending order are given in
Statement No. 3.16 with a total share of 79.19%.
Statement No. 3.16: Dominance of States in terms of Investment in P&M
No. of Enterprises
Investment in Plant &
Machinery
Lakh % crore %
1 Tamil Nadu 18.21 9.16 12139.64 12.83
2 Kerala 12.94 6.51 10689.03 11.29
3 Andhra Pradesh 14.90 7.50 9973.16 10.54

41
4 Uttar Pradesh 22.34 11.24 8409.84 8.89
5 Karnataka 11.12 5.60 8023.29 8.48
6 West Bengal 20.80 10.47 7464.93 7.89
7 Maharashtra 14.45 7.27 6679.53 7.06
8 Gujarat 13.03 6.55 4926.73 5.21
9 Punjab 9.66 4.86 3704.74 3.91
10 Odisha 9.77 4.92 3616.37 3.82
Total 147.21 74.07 75627.25 79.91
Dominance of Industry Groups
Dominance in terms of Number of Enterprises
3.15 Analysis of number of enterprises under broad economic activity groups
(three digit level of NIC-2004) indicates dominance of select activities in
unregistered sector. Out of economic activities reported under NIC-2004,
three digit levels, top 20 activities, as reported in statement No. 3.17 below,
accounted for 87.77% of the total number of enterprises. Activity of repairing
of personal and household goods accounted for 15.13% of the total number of
enterprises. Share of manufacturing of wearing apparels except fur apparel
for 14.85% of total number of enterprises. Other important activities were the
activity group of other services activities (11.24%) ,manufacturing of grain
mill products (8.95%), business activity (5.96%), maintenance and repair of
motor vehicles (5.81%), telecommunication (4.13%), manufacturing of
furniture (3.63%), manufacturing of other fabricates metal products (2.71%),
manufacture of other textile (2.21%), manufacturing of products of wood,
crok, straw and plaiting materials (1.76), manufacturing n.e.c
(1.71%),manufacture of other food products (1.48%), manufacture of Non-
metallic mineral products n.e.c (1.45%), spinning, weaving and finishing of
textiles (1.38%) (Statement No. 3.17).
Statement No 3.17: Percentage Distribution of Enterprises by Type of Industry
Sl. No. NIC 2004 Description of Activity
No. of
Enterprises
% Share
1 526 Repair of Personal and Household Goods 3006109 15.13
2 181
Manufacture of Wearing Apparel, Except Fur
Apparel. 2951091 14.85
3 930 Other Service Activities 2234192 11.24
4 153
Manufacture of Grain Mill Products, Starches
and Starch Products, and Prepared Animal
Feeds. 1778597 8.95
5 749 Business Activities N.E.C. 1184224 5.96

42
6 502 Maintenance and Repair of Motor Vehicles 1153845 5.81
7 642 Telecommunications 820032 4.13
8 361 Manufacture of Furniture 722078 3.63
9 289
Manufacture of Other Fabricated Metal
Products; Metal Working Service Activities. 539057 2.71
10 172 Manufacture of Other Textiles 439636 2.21
11 202
Manufacture of Products of Wood, Crok, Straw
and Plaiting Materials 349252 1.76
12 369 Manufacturing N.E.C. 339799 1.71
13 154 Manufacture of Other Food Products 294828 1.48
14 269
Manufacture of Non-Metallic Mineral Products
N.E.C. 288539 1.45
15 171 Spinning, Weaving and Finishing of Textiles. 275087 1.38
16 292 Manufacture of Special Purpose Machinery 271849 1.37
17 201 Saw Milling and Planning of Wood. 235805 1.19
18 725
Maintenance and Repair of Office, Accounting
and Computing Machinery 228903 1.15
19 242 Manufacture of Other Chemical Products 166424 0.84
20 281
Manufacture of Structural Metal Products,
Tanks, Reservoirs and Steam Generators 163302 0.82
Total of above twenty 17442648 87.77
Others 2431058 12.23
All 19873706 100.00
Dominance in Terms of Employment
3.16 Analysis of the percentage distribution of employment in various industry
groups (NIC 3-digit level) indicates pre-dominance of select industries. Top
20 industry groups, accounted for 86.36% of the total employment. With 12.48%
of employment share, the activity of manufacturing of wearing apparels except
for fur apparel was most dominant product group in terms of employment
generation followed by repair of personal and household goods, which
accounted for 11.31% of total employment in unregistered MSME sector.
Other product groups which accounted for relatively higher share of
employment relates to other service activities with a share of 9.15% and
Manufacture of Grain Mill Products, Starches and Starch Products, and
Prepared Animal Feeds was 8.12% (Statement No. 3.18).

43
Statement No. 3.18: Percentage Distribution of Employment by type of
Industry
Sl. No.
NIC3
Digit
Description of Activity
No. of
Enterprises
Employment
Lakh % Lakh %
1 181
Manufacture of Wearing Apparel,
Except Fur Apparel. 29.51 14.85 51.04 12.48
2 526
Repair of Personal and Household
Goods 30.06 15.13 46.25 11.31
3 930 Other service activities 22.34 11.24 37.43 9.15
4 153
Manufacture of Grain Mill Products,
Starches and Starch Products, and
Prepared Animal Feeds. 17.79 8.95 33.19 8.12
5 502
Maintenance and Repair of Motor
Vehicles 11.54 5.81 26.85 6.57
6 749 Business activities N.E.C. 11.84 5.96 23.36 5.71
7 361 Manufacture of Furniture 7.22 3.63 17.53 4.29
8 269
Manufacture of Non-Metallic Mineral
Products N.E.C. 2.89 1.45 16.80 4.11
9 289
Manufacture of other fabricated metal
products; metal working service
activities. 5.39 2.71 14.44 3.53
10 172 Manufacture of Other Textiles 4.40 2.21 14.15 3.46
11 642 Telecommunications 8.20 4.13 11.78 2.88
12 171
Spinning, Weaving and Finishing of
Textiles. 2.75 1.38 10.78 2.64
13 154 Manufacture of Other Food Products 2.95 1.48 9.52 2.33
14 369 Manufacturing N.E.C. 3.40 1.71 7.03 1.72
15 202
Manufacture of products of wood,
Crok, straw and plaiting materials 3.49 1.76 6.77 1.66
16 201 Saw Milling and Planning of Wood. 2.36 1.19 5.58 1.37
17 292
Manufacture of Special Purpose
Machinery 2.72 1.37 5.43 1.33
18 713
Renting of Personal and Household
Goods N.E.C. 1.61 0.81 5.40 1.32
19 725
Maintenance and Repair of Office,
Accounting and Computing Machinery 2.29 1.15 5.08 1.24
20 160 Manufacture of Tobacco Products. 1.58 0.80 4.71 1.15
Total of above twenty 174.32 87.71 353.09 86.36
Others 24.42 12.29 55.75 13.64
All 198.74 100.00 408.84 100.00
Dominance in terms of Gross Output
3.17 Activity of Manufacturing of grain mill products, starches & starch
products & prepared animal feeds topped the product groups in terms of

44
output with a share of 8.96% followed by the manufacture of rubber products
(7.77%). Other activities with relatively high share in output related to
repair of personal and household goods (7.65%), manufacturing of wearing
apparel except for fur apparel (7.47%), business activities nec (5.50%) , other
service activities (5.26%), maintenance and repairing of motor vehicles
(5.15%),manufacture of furniture (4.71%), manufacture of non metals (4.29)
and manufacture of other fabricated metal products, metal working service
activities (3.89%). The top twenty activities cover 82.21% of the total gross
output (Statement No. 3.19).
Statement No. 3.19: Percentage Distribution of Gross Output by type of
Industry
Sl.
No.
NIC
3
Digit
No. of
Enterprises
Gross Output
Lakh % Crore %
1 153
Starches and Starch Products, and Prepared
Animal Feeds. 17.79 8.95 33113.45 8.96
2 251 Manufacture of Rubber Products 1.44 0.72 28720.44 7.77
3 526 Repair of Personal and Household Goods 30.06 15.13 28266.53 7.65
4 181
Apparel. 29.51 14.85 27629.13 7.47
5 749 Business Activities N.E.C. 11.84 5.96 20349.32 5.50
6 930 Other Service Activities 22.34 11.24 19435.29 5.26
7 502 Maintenance and Repair of Motor Vehicles 11.54 5.81 19050.19 5.15
9 269
Products N.E.C. 2.89 1.45 15850.48 4.29
10 289
Products; Metal Working Service Activities. 5.39 2.71 14394.86 3.89
11 171 Spinning, Weaving and Finishing of Textiles. 2.75 1.38 14280.25 3.86
16 242 Manufacture of Other Chemical Products 1.66 0.84 6924.27 1.87
17 281
Tanks, Reservoirs and Steam Generators 1.63 0.82 5728.65 1.55
19 292 Manufacture of Special Purpose Machinery 2.72 1.37 5048.03 1.37
20 725
Others 26.37 13.27 65751.93 17.79
All 198.74 100.00 369702.59 100.00

45
Dominance in terms of Market Value of Fixed Assets
3.18 Percentage share of top 20 economic activities at NIC - three digit level in
terms of fixed investment was 80.25. Economic activity of manufacturing of
grain mill products, starches and starch products(9.25%), business activities
N.E.C. (9.14%), repair of household goods (8.33%) , maintenance and repair
of motor vehicles (7.97%), manufacturing of wearing appeared except FUR
apparel (6.50%) and other service activities (6.46%), manufacture of other
fabricated metal products (4.13%), telecommunication (3.95%), Manufacture
Of Furniture (3.12), manufacturing of non metallic mineral product (2.83%),
maintenance and repair of office ,accounting and computing machinery
(2.19%) and (2.08%) saw milling and planning of woods were found.
Statement No 3.20: Percentage Distribution of Market Value of Fixed Assets by
Type of Industry
Sl.
No.
NIC
3
Digit
No. of
Enterprises
Market Value of
Fixed Assets
Lakh % Crore %
1 153
Starches and Starch Products, and
Prepared Animal Feeds. 17.79 8.95 22277.01 9.25
5 181
Manufacture of Wearing Apparel, Except
Fur Apparel. 29.51 14.85 15664.39 6.50
7 289
10 269
Products N.E.C. 2.89 1.45 6804.08 2.83
11 725
14 713
Renting of Personal and Household Goods
N.E.C. 1.61 0.81 4754.78 1.97
16 171
Spinning, Weaving and Finishing of
Textiles. 2.75 1.38 4582.90 1.90
19 222
Printing and Service Activities Related To
Printing. 1.34 0.67 3650.19 1.52
20 281
Tanks, Reservoirs and Steam Generators 1.63 0.82 3396.40 1.41

46
Others 27.57 13.87 47560.63 19.75
All 198.74 100.00 240816.46 100.00
Dominance in terms of Original Value of Plant and Machinery
3.19 The activity of Manufacture of Grain Mill Products, Starches and Starch
Products, Prepared Animal Feeds in unregistered MSME sector is on top in
terms of investment in plant and machinery with a share of 11.24%.
Percentage share of other product groups in terms of original value of P&M is
given in descending order of dominance in Statement No. 3.21. Percentage
share of top 20 activity groups (NIC - three digit level) in original value of
plant and machinery was 79.30% whereas these activity groups accounted for
85.87% ofenterprises in unregisteredMSMEsector (Statement No. 3.21).
Statement No. 3.21: Percentage Distribution of Original Value of
Plant & Machinery by type of Industry
Sl.
No.
NIC
3
Digit
No. of
Enterprises
Original Value of
P&M
Lakh % Crore %
1 153
Manufacture of Grain Mill Products, Starches
and Starch Products, and Prepared Animal
Feeds. 17.79 8.95 10638.54 11.24
5 181
Apparel. 29.51 14.85 5283.15 5.58
6 289
9 269
Manufacture of Non-Metallic Mineral Products
N.E.C. 2.89 1.45 2983.14 3.15
12 171 Spinning, Weaving and Finishing of Textiles. 2.75 1.38 2179.94 2.30
13 713
Renting of Personal and Household Goods
N.E.C. 1.61 0.81 2047.83 2.16
15 729 Other Computer Related Activities 1.13 0.57 1861.72 1.97
17 222
Printing and Service Activities Related To
Printing. 1.34 0.67 1610.34 1.70

47
19 725
Maintenance and Repair of Office, Accounting
and Computing Machinery 2.29 1.15 1541.14 1.63
Others 28.08 14.13 19587.14 20.70
All 198.74 100.00 94639.60 100.00
***

Final report of fourth all india census of msme for finance, subsidy & project related support contact - 9861458008

Final report of fourth all india census of msme for finance, subsidy & project related support contact - 9861458008

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Final report of fourth all india census of msme for finance, subsidy & project related support contact - 9861458008