The pilot study for the Annual Survey of Service Sector Enterprises (ASSSE) was undertaken to assess the viability of using the Goods and Services Tax Network (GSTN) database for future surveys. Conducted by the Ministry of Statistics and Programme Implementation (MoSPI), this study was crucial for gathering comprehensive data on the incorporated service sector in India. This sector is vital to the economy, contributing over 50% to the GDP and providing millions of jobs.
Objective of the Pilot Study
The primary aim was to test operational processes and validate the GSTN database as a sampling frame. The study focused on enterprises registered under the Companies Act and Limited Liability Partnership Act. It sought to gather accurate data on economic characteristics, employment, and operational aspects of these enterprises.
Phases of the Pilot Study
The pilot study was conducted in two phases. Phase I ran from May to August 2024, covering 10,005 enterprises. This phase focused on verifying address and activity information. Phase II took place from November 2024 to January 2025, involving 5,020 enterprises to assess data collection methods and the clarity of instructions provided.
Methodology
The study employed an enterprise approach, treating each GSTN unit as a principal place of business. Data was collected through Computer-Assisted Personal Interviewing (CAPI) using tablets. This method aimed to streamline data collection and improve response rates.
Key Findings
Most enterprises were operational and cooperative in providing information. The study revealed that 82.40% of surveyed entities were Private Limited Companies. Larger enterprises, particularly those with output exceeding Rs. 500 crores, dominated in asset ownership and capital formation.
Challenges Faced
The study encountered difficulties in collecting data from units with headquarters in different states. Additionally, separating GSTIN-level information from centralized records proved challenging. Despite these issues, the questionnaire was generally found to be user-friendly and effective.
Importance of the Findings
The pilot study’s insights are vital for designing the full-scale annual survey set to begin in January 2026. The findings tell the need for rigorous verification of survey instruments and data collection methods. They also highlight the significance of understanding the economic landscape of the service sector.
Future Directions
The pilot study lays the groundwork for a comprehensive survey that will inform policy decisions and strategic planning. The data collected will help fill existing gaps in understanding the incorporated service sector’s dynamics.
Questions for UPSC:
- Examine the role of the service sector in India’s economic growth and employment generation.
- Discuss the significance of accurate data collection methods in economic surveys. How can they influence policy-making?
- Analyse the impact of incorporating technology in data collection for national surveys.
- Critically discuss the challenges faced in data collection from enterprises in diverse geographic locations.
Answer Hints:
1. Examine the role of the service sector in India’s economic growth and employment generation.
- The service sector contributes over 50% to India’s GDP, denoting its economic significance.
- It employs millions, providing diverse job opportunities across various industries.
- Key areas include IT, healthcare, hospitality, and finance, driving innovation and growth.
- Service sector growth stimulates demand for goods and services, benefiting other sectors.
- Government policies and reforms have further boosted the sector’s expansion and resilience.
2. Discuss the significance of accurate data collection methods in economic surveys. How can they influence policy-making?
- Accurate data ensures reliable vital information about economic conditions and trends, aiding decision-making.
- Data quality affects resource allocation, investment decisions, and economic forecasting.
- Informed policies can be developed based on comprehensive and precise data analysis.
- Robust data collection methods enhance stakeholder trust and engagement in the survey process.
- They facilitate timely responses to emerging economic issues, improving policy effectiveness.
3. Analyse the impact of incorporating technology in data collection for national surveys.
- Technology improves efficiency in data collection, reducing time and costs associated with traditional methods.
- Tools like CAPI enable real-time data entry and analysis, enhancing data accuracy.
- Technology facilitates broader reach, allowing for data collection from diverse geographic locations.
- It enables better data management and storage, improving accessibility for future analysis.
- Integration of technology encourages innovation in survey methodologies and tools, enhancing overall quality.
4. Critically discuss the challenges faced in data collection from enterprises in diverse geographic locations.
- Variability in local regulations and compliance can complicate data collection efforts.
- Geographical barriers may hinder access to certain enterprises, impacting response rates.
- Data discrepancies may arise from differences in record-keeping practices across regions.
- Language and cultural differences can affect communication and data accuracy.
- Centralized records may not align with local data, complicating data validation and extraction.
