Value Addition & Employment Generation in the ICT Sector in India Government of India Ministry of Statistics & Programme Implementation National Statistical Organisation Central Statistics Office CONTENTS
Sl.
No.
1.
2.
3.
4.
5.
Chapter Description
6.
Preface
Team of Officers
Highlights
Introduction
Definition of ICT Sector, its Scope and
Coverage
Sources of the data
7.
Gross Domestic Product of ICT Sector
8.
9.
10
Growth and Employment in ICT
Manufacturing Industries
Growth and Employment in ICT Services
Industries
Annexures
10
12
13
18
Annex I: Definitions
22
Annex II: Sampling Design of ASI
Annex III: Sub-sector-wise Gross Value
Added in organised ICT manufacturing sector
Annex IV: Sub-sector-wise person engaged in
organised manufacturing sector
23
Page
No.
(i)
(ii)
1
2
6
25
26
PREFACE
The Central Statistics Office (CSO) in the Ministry of Statistics & Programme
Implementation (MOSPI), a nodal statistical agency of the Government of India, is
responsible for standardization and co-ordination of statistical activities at the national level
and for statistical co-operation with the International Statistical Organizations. It also
compiles and publishes statistics on emerging and critical areas to cater to the needs for
national planning and policy making, besides a set ofcore statistics.
The Information and Communication Technology (lCT) is an important emerging
sector of contemporary India. Its contribution to Indian economy and society is quite
significant. However, scientific collection and compilation of ICT statistics is yet to be
developed in the country for meeting the requirements of development planning. This is the
state of affairs in most of the developing countries in the world. To fill this data gap lot of
efforts are being made at the international level. One such effort is the project on "Statistical
Compilation of ICT Sector and Policy Analysis" undertaken by Orbicom, the network of
UNESCO Chairs in Communication. Orbicom is recognized in the international community
for research on issues related to the digital divide, the gender divide, the making of
information societies and ICT markets. Govt. of India, MOSPI has signed an MOU to
participate in this project.
Quantification of the ICT sector has produced valuable insights in developed
countries. Examples include work at the OECD and several developed countries, which
provided detailed statistics and policy-relevant analysis. However, the systematic
quantification of the ICT sector has not been attempted for countries like India. The main
objective of the project is to encourage developing countries like India to generate good
quality official ICT statistics. In this project an attempt has been made to compile data on
the contribution ofICT sector to the Gross Domestic Product (GDP) and employment to the
Indian economy following internationally accepted and harmonized definitions and concepts
emerging form the OECD and United Nations. The data have been compiled from the
existing data holdings ofthe MOSPI.
Since the ICT sector spreads over both organized and unorganized segments of
manufacturing and services sectors, the data included in this booklet have been compiled
from the Annual Survey of Industries for organized manufacturing sector and the enterprise
surveys conducted by the National Sample Survey Office (NSSO) for services provided by
the ICT.
The ICT sector I sub-sectors as classified under ISIC Version 4.0 and the
corresponding derived National Industrial Classification 2008 (NIC-2008) have been used
for compilation of the data. Since no systematic effort was made in the previous years for
collection and compilation of ICT sector statistics, only a limited amount of data that was
available could be compiled from the existing sources. Efforts are being made in the coming
surveys to fill this data gap. We look forward to the suggestions for improvement in the
scope, coverage and quality ofthe data ofthe present publication.
~~
New Delhi
April 2010
(S.K.DAS) DIRECTOR GENERAL (CSO) TEAM OF OFFICERS
(associated with the project)
********
1. Shri Vijay Kumar, the then ADG, CSO, MOS&PI
2. Shri Ashish Kumar, ADG, CSO, MOS&PI
3. Shri D. Sahoo, DDG, CSO, MOS&PI
4. Smt. G.S. Lakshmi, DDG, CSO, MOS&PI
5. Smt. Payal Malik, Lecturer, Delhi University
6. Shri Ram Rao Mundhe, Research Assistant
*********************
ii
HIGHLIGHTS
• The objective of the project is to compile Gross Value
Added and Employment for the ICT sector.
• The definition and scope of ICT sector as recommended
by UNSD have been adopted for the compilation.
• Gross Value added and number of persons engaged in
organised Manufacturing sector are available only from
Annual Survey of Industries (ASI).
• Estimated GVA and employment for ICT services sector
are available only for 2006-07 from
the report ‘ Service
Sector in India (2006-07) - NSS 63rd Round’.
• Estimated GDP (at 2-digit level of NIC) for total ICT has
increased from Rs. 656 billion in 2000-01 to Rs. 2530 billion
in
2007-08 with CAGR of 21.3%.
• Estimated share (at 2-digit level of NIC) of ICT services to
total ICT GDP is about 90% and that of ICT
manufacturing
sector to total ICT GDP is about 10%.
• Estimated share (at 2-digit level of NIC) of ICT services
GDP to Service sector GDP has increased from 6% in 200001 to 10% in 2007-08.
• Estimated share of ICT services to total GDP has
increased from 3% in 2000-01 to 6% in 2007-08.
‐‐‐‐‐‐‐‐‐‐‐‐x‐‐‐‐‐‐‐‐‐‐‐‐‐ 1
CHAPTER 1
INTRODUCTION
1.1 Importance of the ICT
It is an accepted fact that the most important scientific and technological
development
of
Technology (ICT).
contemporary
history
is
Information
and
Communication
ICT has pervaded all walks of modern life and society so
profoundly that the modern society is colloquially known as Information Society. It
has revolutionised the development process itself by influencing its manifold
dimensions be it economic, social, political, cultural, environmental, ethical,
behavioural, etc. The contribution of ICT to Gross Domestic Product (GDP),
employment generation, market diversification, operation of free markets, foreign
exchange earnings, poverty reduction, environmental development, economic
globalization and liberalization, women’s empowerment and gender equity are
testimonies to what extent it influences the economy. In the political/administrative
front, ICT facilitates through e-governance, the promotion of responsive,
accountable, corruption-less & effective government and administration and
increases awareness about the rights and the duties of both the government and
citizens. It fosters socio-cultural development and the concept of global village &
borderless society by enhancing the promotion of social cohesion, harmony and
integration, spread of education and knowledge through distance learning in cost
effective manner.
The degree of contribution of the ICT to economies and societies vary
according to their stage of development (developed, developing or underdeveloped), nature of political economy, availability of appropriate complementary
infrastructure, etc. Irrespective of these inherent differentials, ICT is catalysing the
process of change in a manner which reduces the socio-economic and political
inequalities between rich and poor, educated and uneducated, rural and urban, and
men and women across all countries.
1.2 The ICT in the Indian economy
In delineating the significance of the ICT in the Indian economy, it is essential
to clarify, what ICT sector consists of in the Indian context. It needs to be noted that
the ICT is not an individual item like the internet or computers, or
2
telecommunications but it is a convergence of different electronic tools that facilitate
the functions of information processing and communication, including transmission
and display. Since no systematic and scientific data based on harmonised
concepts, definitions and classifications has been developed in India pertaining to
the ICT sector, most of the available data are official by-products originating from
different
functional
ministries/departments,
business
associations,
research
institutions and NGOs.
The Department of
IT, Ministry of Communication and IT, compiles and
publishes data under two broad headings viz. “Electronics Hardware’’ and
“Computer software”. The trends in production and growth rates of the Indian
Electronics and IT/IT enabled Services (ITeS) industry since 2003-04 are given in
Table 1.1. It is observed that “ICT sector” as captured by this data is a fast growing
sector of Indian industry with a recorded production of Rs. 1182.9 billion during the
year 2003-04, which is estimated to reach Rs. 3682.2 billion during the year 200809, recording a growth of more than three times during the last five years. Further
the “ICT industry” during the period from 2003-04 to 2008-09 has shown sustained
growth. However, the annual growth rates during this period have shown
fluctuations. While the growth rate during 2006-07 was 28.3%, it declined to 21.2%
during 2007-08 and again bounced back to 24.5% during 2008-09.
Table 1.1 Trend in production and growth of the Hardware and Computer Software Sector
Year
Production (Rs. Billion)
Electronic
hardware
Computer
software
Growth
Total
(% increase over
previous year)
2003-04
438.0
744.9
1182.9
21.9
2004-05
505.0
1019.2
1524.2
28.9
2005-06
565.6
1337.0
1903.0
24.9
2006-07
660.0
1780.0
2440.0
28.3
2007-08
844.1
2114.1
2958.2
21.2
2008-09
946.9
2735.3
3682.2
24.5
Source: Department of IT, Ministry of Communication and IT
Electronics Hardware production increased from Rs.438 billion in 2003-04 to an
estimated Rs.946.9 billion in 2008-09, with a compound annual growth rate (CAGR)
of 16.6%. However, the annual growth rate in the production of electronics
hardware was only 12.1%, during 2008-09 over 2007-08. According to the Ministry
3
of IT, the hardware production in India constituted around 1.5% of global electronics
production during the year 2008-09.
The Computer Software industry which was worth Rs. 744.9 billion in 200304 is estimated to achieve a production of Rs. 2735.3 billion during the year 200809. Software exports have become an important part of India’s exports. Indian
Software exports have risen from US$ 17.7 billion in 2004-05 to an estimated figure
of US$ 46.3 billion in 2008-09 (Table 1.2). This success in software has been built
on the foundations of public investments in human capital, outward orientation in
policies, and a highly competitive private sector industry.
Table 1.2 Growth of Exports in IT-ITES/BPO sector
Sl.No.
Year
Exports
Growth
(in US$
billion)
(%)
1.
2004- 05
17.7
37.2
2.
2005- 06
23.6
33.3
3.
2006-07
31.1
31.8
4.
2007-08
40.4
29.9
5.
2008-09
46.3
14.6
Source: The Ministry of Communication and Information Technology
So far several statistics have been produced, as above, but such statistics are not
necessarily in alignment with any international classification system. For instance, while
production data is available there is no value added (GDP) data yet officially available.
Most of the studies on Indian IT industry rely on NASSCOM data, which does not reveal
firm level information. Moreover, NASSCOM data is not official data and does not follow
any classification system. For instance, while reporting IT data they club IT with the BPO
industry also known as ITES (IT enabled services). However, this data does not
represent ICT sector in the strictest sense as defined internationally.
Given the limitation of the existing data sources on India’s ICT sector in this
endeavour MoSPI attempts to formally present systematic and internationally comparable
data on the ICT sector from the extant official data.
There is a great need to understand the nature of Indian IT industry, IT use and its
impact. Modifications in the extant system of statistical collection can address this
4
concern and will help in cross comparison across the regions & industry domains within
the country, and across globe. This project is an attempt to address some of these
lacunae.
‐‐‐‐‐‐‐‐‐‐‐‐x‐‐‐‐‐‐‐‐‐‐‐‐‐ 5
CHAPTER 2
DEFINITION OF ICT SECTOR, ITS SCOPE & COVERAGE
In view of the crucial role played by the ICT sector in the economy there is a
great demand for quality ICT statistics by planners and policy makers for informed
decision making. However, scientific generation of ICT statistics is lacking in most
countries, particularly the developing countries including India. Because of the
overwhelming presence of the ICT in various economic activities, it is difficult to
prepare activity and product classification for the sector. Considerable amount of
discussion and debate has taken place in various international fora to devise
standard and harmonised concepts and definitions and to create the activity and
product classification to adequately capture this sector.
Economic
The Organisation for
Cooperation Development (OECD) has taken a leading role in
standardising the definition of the ICT sector, which provides a statistical basis for
measurement of ICT in an internationally comparable manner. The United Nations
Statistics Division has accepted the OECD definitions for their adoption by member
countries. The following general principle has been adopted to identify ICT
economic activities/industries.
“The production (goods and services) of a candidate industry must primarily be intended to
fulfil or enable the function of information processing and communication by electronic
means, including transmission and display.”
The activities (industries) in the ICT sector can be grouped into ICT
manufacturing industries, ICT trade industries and ICT services industries.
Industries in ISIC Rev.4.0 that comply with the above definition are provided below
in Table 2.1.
6
Table 2.1 ICT Sector Industries
Sr. No.
*ISIC code
Description
ICT manufacturing industries
1.
261
Manufacture of electronic components
2.
262
Manufacture of computers and peripheral equipment
3.
263
Manufacture of communication equipment
4.
264
Manufacture of consumer electronic
5.
268
Manufacture of Magnetic & optical media
ICT trade industries
1
4651
Wholesale of computers, computer peripheral equipment &
2.
4652
Wholesale of electronic & telecommunication equipment
ICT services industries
A
61
Telecommunications
1
611
Wired telecommunications activities
2
612
Wireless telecommunications activities
3
613
Satellite telecommunications activities
4
619
Other telecommunications activities
B
62
Information technology service activities
1
6201
Computer programming activities
2
6202
Information technology consultancy activities & computer
3
6209
Other information technology service activities
C
631
Web portals, data processing, hosting and related activities
1
6311
Data processing, hosting and related activities
2
6312
Web portals
D
951
Repair of computers & communication equipment
1
9511
Repair of computers & peripheral equipment
2
9512
Repair of communication equipment
*International Standard Industrial Classification (ISIC) Rev. 4.0 released in 2008
7
The National Industrial Classification 2008
(NIC 2008) has adopted this
classification in totality up to 4-digit level and it has been expanded to 5-digit level
to capture more disaggregated economic activities for use in national planning and
policy making. The NIC 2008 is a derived National Industrial Classification of all
economic activities of the Indian economy based on the International Standard
Industrial Classification (ISIC) of all economic activities Version 4.0.(ISIC Ver 4.0)
As mentioned earlier, current ICT statistics in India are not based on any
harmonised concepts, definitions and classifications. Data available are official byproducts or generated by business associations, NGOs and research institutions for
their specific uses adopting concepts, methodologies and classification, which may
not be according to the international standards.
Thus, in the absence of harmonised concepts and definitions for generating
the ICT indicators, which are required for planning, monitoring and evaluation, a
limited number of penetration indicators, particularly from telecommunication viz.
tele-density, have been used to measure the growth of the ICT sector. Prominent
among these parameters include: number of telephone connections (both mobile &
landlines) per thousand population,
percentage of geographical area
telecommunication facilities, percentage of
having
population with telecommunication
facilities, etc. National policies and business strategies are so far being developed
only with these indicators. Though these indicators have been valuable in guiding
national policies, holistic and in-depth economic analysis require other indicators
pertaining to value addition, employment generation, trade, etc. for assessment of
the impact of the ICT revolution on the economy and society.
The compilation and publication of this booklet is modest attempt to fill the
existing data gaps. The two most important ICT indicators from policy perspective
are Gross Value Added (GVA) or Net Value Added (NVA) and employment with
age-sex distribution. Attempt has been made to generate these parameters sectorwise (industry-wise) by using latest National Industrial Classification.
Broadly the economic data are classified under two heads viz. Manufacturing
Sector (organised and unorganised) and Services Sector (organised and
unorganised)
giving rise to four categories viz. Organised Manufacturing Sector,
Unorganised Manufacturing Sector, Organised Services Sector & Unorganised
8
Services Sector.
The data sources for these categories are discussed in detail in
the next chapter.
The definitions of GVA, NVA, Workers, Employees and Persons Engaged as
used in the Annual Survey of Industries (ASI) are explained in Annexure I. The
break-up of employment according to gender has been presented for Organised
Manufacturing sector only, since such break-up is not available for all sectors.
‐‐‐‐‐‐‐‐‐‐‐‐x‐‐‐‐‐‐‐‐‐‐‐‐‐ 9
CHAPTER 3
SOURCES OF DATA
3.1 The ICT sector, as explained earlier is broadly divided into four sub categories,
organised manufacturing, unorganised manufacturing, organised services
and
unorganised services. Of these four, the data for organised manufacturing sector
is obtained from the Annual Survey of Industries (ASI), which is conducted by the
Central Statistics Office, M/o Statistics & Programme Implementation. The data of
the remaining three sectors are obtained from the enterprise surveys conducted by
the National Sample Survey Office, M/o Statistics & Programme Implementation.
The details of these surveys are as under.
3.2 Annual Survey of Industries
The Annual Survey of Industries (ASI) is the principal source of industrial
statistics in India. It provides statistical information to assess and evaluate,
objectively and realistically, the changes in the growth, composition and structure of
organised manufacturing sector. This covers activities related to manufacturing
processes, repair services, gas and water supply and cold storage. The Survey is
conducted annually under the statutory provisions of the Collection of Statistics Act
1953, and the Rules framed there-under in 1959, except in the State of Jammu &
Kashmir where it is conducted under the State Collection of Statistics Act, 1961 and
the rules framed there-under in 1964.
It covers all factories registered under Sections 2m(i) and 2m(ii) of the
Factories Act, 1948 i.e. those factories employing 10 or more workers using power
and those employing 20 or more workers without using power. The survey also
covers bidi and cigar manufacturing establishments registered under the Bidi &
Cigar Workers (Conditions of Employment) Act, 1966. Sampling Design of ASI is
discussed in Annexure-II.
3.3
63rd Round Survey of NSSO.
The principal source of Service Sector statistics in India that are compiled
following standard statistical classification and methodology, is the National Sample
Survey Office (NSSO) which collects data pertaining to Service Sector periodically
through the follow up enterprise surveys. The 63rd round of NSSO (July 2006 –
10
June 2007) is a comprehensive survey that covered both Organised and
Unorganised Enterprises of some selected service industries.
Scope & Coverage : The 63rd round covered broadly service sector
enterprises engaged in the activities of hotels and restaurants; transport, storage
and communication (Section I); financial intermediation (Section J); real estate,
renting and business activities (Section K); education (Section M); health and social
work (Section N); and other community, social and personal service activities
(Section O). As regards the geographical coverage of the survey, it covered all the
states and Union Territories of India, except a few very difficult and inaccessible
areas. Sampling design of NSS 63rd round is discussed in brief in Annexure II.
3.4
NATIONAL ACCOUNTS STATISTICS
The annual publication of “National Accounts Statistics (NAS)” presents the estimates
of national/domestic product, consolidated accounts of the nation, private final
consumption expenditure, savings, capital formation, public sector transactions and
disaggregated statements. This publication also includes Statements on the Revised
Advanced Estimates also. A brief analytical write-up, giving an overview of the economy
as observed in the NAS, is also included in the publication. The latest available
publication is Nation Accounts Statistics “NAS-2009” covering the information for the year
2007-08.
The
publication
is
available
http://mospi.gov.in/mospicsoreptpubn.htm.
‐‐‐‐‐‐‐‐‐‐‐‐x‐‐‐‐‐‐‐‐‐‐‐‐‐ 11
at
the
link,
CHAPTER 4
GROSS DOMESTIC PRODUCT OF ICT SECTOR
The Gross Domestic Product (GDP) at current prices in India has gone up to Rs.43,
209 billion in 2007-08 from 192,50 billion in 2000-01, with compound Annual; Growth
Rate (CAGR) of 12.24%. ICT sector GDP has increased to Rs. 2530 billion in 2007-08
from Rs. 656 billion in 2000-01 with CAGR of 21.3%. Within the composition of ICT
sector, the component “computer related services” grew at a rate of 27.23% per annum
during 2000-01 and 2007-08.
The growth rate of ICT Manufacturing sector was only
11.4% per annum during the period.
The share of ICT services sector to total GDP was as 5.52% during 2007-08 which
was only 3.05% during 2000-01. Within services sector - ‘computer and related services’
segment has grown steadily with its share in total ICT services increased from 46% in 200001 to 61% in 2007-08. It is also observed that the share of ICT Manufacturing sector
remains more or less constant with about 0.35% during 2000-01 to 2007-08. The most
significant feature of the ICT sector is that the share of ICT services sector to the total ICT
GDP has been about 90% during 2000-01 to 2007-08.
The details of GDP contribution
within the ICT sector can be seen from the following Table.
Table 4.1 Gross Domestic Product (GDP) of ICT Sector
(all figures are in Rs. Billion at current prices unless otherwise mentioned)
2002-03
19250
200102
20977
2004-05
22614
200304
25382
2006-07
2007-08
28777
200506
32824
37794
43209
269(46)
339(47)
414(52)
546(55)
708(57)
918(59)
1178(61)
1452(61)
318(54)
381(53)
376(48)
450(45)
536(43)
630(41)
763(39)
931(39)
587
720
790
996
1244
1548
1941
2383
69
75
94
101
96
133
122
147
656
795
884
1097
1340
1681
2063
2530
E. Manufacturing sector GDP
3004
3153
3460
3885
4536
5194
6180
7311
F. Services sector GDP
9713
10796
11909
13399
15142
17173
19848
24042
2.3
2.4
2.7
2.6
2.1
2.6
2.0
2.0
H. Share of ICT services GDP to Services sector GDP ( %)
6.04
6.67
6.63
7.43
8.22
9.01
9.78
9.91
I. Share of ICT sector to total GDP (in %)
3.41
3.79
3.91
4.32
4.66
5.12
5.46
5.86
J. Share of ICT services to total GDP (in %)
3.05
3.43
3.49
3.92
4.32
4.72
5.14
5.52
K. Share of ICT mfg to total GDP (in %)
0.36
0.36
0.42
0.4
0.33
0.41
0.32
0.34
L. Share of ICT mfg to total ICT GDP (in %)
10.5
9.4
10.6
9.2
7.2
7.9
5.9
5.8
M. Share of ICT services to total ICT GDP (in %)
89.5
90.6
89.4
90.8
92.8
Source: National Accounts Statistics (NAS), India, 2007-08 and 2008-09
92.1
94.1
94.2
2000-01
A. GDP at factor cost
(i) computer related Services (in
brackets: % of total ICT service)
(ii) Communication (in brackets: % of
total ICT service)
B. Total ICT services sector GDP (i) + (ii)
C. ICT org mfg GVA
D. Total ICT Sector GDP (B) + (C)
G. Share of ICT mfg to mfg sector GDP (in %)
‐‐‐‐‐‐‐‐‐‐‐‐x‐‐‐‐‐‐‐‐‐‐‐‐‐
CHAPTER 5
12
GROWTH AND EMPLOYMENT IN ICT MANUFACTURING INDUSTRIES
The total manufacturing sector comprises the Registered (Organized) and
unregistered (Unorganized) units. While the former is covered under the Annual
Survey of Industries (ASI), the latter is covered periodically through the enterprise
surveys conducted by the NSSO. It is observed from the data generated through
the latter that the contribution to Gross Value Added (GVA) and employment of the
unorganized manufacturing ICT enterprises are negligible. This chapter is,
therefore, devoted to the analysis of trends and patterns in GVA and employment in
the organized ICT manufacturing sector. During 2007-08, organized ICT
manufacturing industries contributed about 2% of the total manufacturing sector
both GVA and employment
The GVA (at current prices) has increased from Rs. 69 billion in 2000-01 to
Rs. 148 billion in 2007-08, with CAGR of 13.41% (Fig. 5.1).
Figure 5.1 GVA for organized ICT manufacturing sector
Source: Annual Survey of Industries, India, 2000-01 to 2007-08.
The GVA (at current prices) per worker was Rs. 236 thousand in 2000-01, which
has increased to Rs. 465 thousand in 2007-08(Fig. 5.2).
13
Figure 5.2 GVA per worker in the organized ICT manufacturing sector
500
460
G VA per worker in R s . '000
450
377
400
340
331
350
279
300
250
465
437
236
200
150
100
50
0
2000‐01
2001‐02
2002‐03
2003‐04
2004‐05
2005‐06
2006‐07
2007‐08
Source: Annual Survey of Industries, India, 2000-01 to 2007-08.
A sub-sector-wise analysis of the ICT sector industries reveals that the
maximum share (about 30%) comes from the subsector ‘Manufacture of magnetic
and optical media’ (2680 of NIC 2008) to total ICT GVA and the minimum share
(about 10%) is contributed by the subsector ‘Manufacture of communication
equipments’ (2630 of NIC 2008). This pattern is consistent during 2000-01 to 200708 except for the last two years viz. 2006-07 and 2007-08 in which the minimum
share corresponds to sub sectors ‘manufacture of consumer electronics’ (13.17%)
and ‘manufacture of computers and peripheral equipments’ (14.15%) (Table 5.1).
As for employment (number of persons engaged in ICT manufacturing sector) the
sub-sector ‘Manufacture of magnetic and optical media’ (2680 of NIC 2008 ) has
maximum share about 50% , while the minimum share (ranging from 6% to 9%) is
from the subsector ‘ Manufacture of computers and peripheral equipments’ (2620
of NIC 2008). This pattern has been persistent except for 2004-05 and 2006-07
(Table 5.2).
Table 5.1 Sub-sector wise percentage distribution of Estimated GVA in Organised ICT
14
Manufacturing industries
NIC
code
2008
Description
2000-
2001- 2002-
2003-
2004-
2005-
2006-
2007-
01
02
03
04
05
06
07
08
2610
Manufacture of electronic
components
22.74
23.74
20.53
19.61
19.82
18.50
21.17
18.21
2620
Manufacture of computers and
peripheral equipments
13.51
14.83
15.10
19.10
15.62
21.70.
18.20
14.79
2630
Manufacture of communication
equipments
9.77
11.06
9.51
7.82
11.22
10.95
14.15
19.42
2640
Manufacture of consumer
electronics
22.75
17.47
22.97
20.53
19.91
16.25
13.17
17.87
2680
Manufacture of magnetic &
optical media
31.23
32.90
31.89
32.94
33.43
32.60
33.31
29.71
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Source: Annual Survey of Industries, India, 2000-01 to 2007-08.
Table 5.2 Sub-sector wise percentage distribution of Estimated Persons engaged in Organised
ICT Manufacturing Industries
NIC
code
2008
Description
2610
200001
200102
200203
Manufacture of electronic
components
16.65
18.18
17.77
2620
Manufacture of computers and
peripheral equipments
6.57
7.32
2630
Manufacture of communication
equipments
10.22
2640
Manufacture of consumer
electronics
2680
200405
200506
200607
200708
17.60
17.41
20.52
19.07
21.95
6.27
7.95
9.15
7.54
9.38
9.02
10.14
9.17
9.06
8.22
9.60
8.84
12.64
11.18
9.34
10.30
10.84
10.51
10.01
9.74
8.37
Manufacture of magnetic & optical
media
55.38
55.02
56.49
54.55
54.71
52.33
52.98
48.03
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Source: Annual Survey of Industries, India, 2000-01 to 2007-08.
Gender distribution of ICT Sector employment
15
200304
100.0
Generally it is observed that most of the technology oriented industries are not
gender-neutral. Absorption of men workers is often higher than those of women
workers in most of the technology oriented industries. It is generally believed that
ICT industries are less gender sensitive than most other industries. This
phenomenon has been investigated empirically for the organised ICT manufacturing
sector on the basis of ASI data. It is observed that the share of women workers is
higher than the men workers only in the sub sector ‘Manufacture of magnetic and
optical media’, where as it is lower in the remaining sub-sectors. The minimum
share of women workers is observed in the category ‘‘Manufacture of computers
and peripheral equipments’, ranging from 0.9 % in 2000-01 to 1.3 % in 2007-08,
and the maximum share of women workers in the category ‘Manufacture of
magnetic and optical media’, ranging from 33.4% in 2000-01 to 32.3% in 2007-08 .
This pattern is persistent over the study period 2000-01 to 2005-06 (Table 5.3).
16
Table 5.3: Gender-wise percentage distribution of estimated workers in organized ICT manufacturing industries
NIC
Activity
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Code
M
2008
F
T
M
F
T
M
F
T
M
F
T
M
F
T
M
F
T
M
F
T
M
F
T
2610
Manufacture of
electronic
components
11.6 4.4 16.0 12.3 4.9 17.2 12.6 4.2 16.8 11.0 4.6 15.6 10.9 4.60 15.6 13.6 5.05 18.6 12.1 5.0 17.2 12.6 5.3 17.9 2620
Manufacture of
computers and
peripheral
equipments
2.5 0.9 3.4 3.6 0.9 4.4 3.6 0.7 4.3 4.3 1.1 5.4 5.02 1.1 6.1 5.2 1.04 6.2 4.5 1.3 5.8 5.0 1.3 6.3 2630
Manufacture of
communication
equipment
6.6 1.7 8.4 6.0 1.3 7.3 5.7 1.2 7.0 6.2 1.3 7.4 5.5 1.5 7.1 5.8 1.3 7.1 5.4 1.4 6.8 6.7 1.5 8.2 2640
Manufacture of
consumer
electronics
6.6 4.1 10.7 5.6 2.8 8.4 6.1 2.6 8.8 6.2 2.5 8.7 6.7 1.9 8.7 6.9 1.6 8.5 6.4 1.2 7.6 6.5 0.9 7.4 2680
Manufacture of
Magnetic and
optical media
28.2 33.4 61.6 29.7 33.0 62.6 29.8 33.4 63.2 30.5 32.4 62.9 29.4 33.2 62.6 30.2 29.4 59.6 30.5 32.2 62.7 28.0 32.3 60.3 55.6 44.4 100 57.1 42.9 100 57.8 42.2 100 58.1 41.9 100 57.6 42.4 100 61.7 38.4 100 58.9 41.1 100 58.8 41.2 100 Total
Source: Annual Survey of Industries, India, 2000-01 to 2007-08.
17 17
The total number of workers, men and women, in the ICT organised manufacturing
sector by sub-sectors is depicted in Fig. 5.3. It is observed that men workers are
more than the women workers over all the years.
Figure 5.3 Number of persons engaged in ICT manufacturing sector – gender wise (in ‘000)
Source: Annual Survey of Industries, India, 2000-01 to 2007-08.
‐‐‐‐‐‐‐‐‐‐‐‐x‐‐‐‐‐‐‐‐‐‐‐‐‐ 18
CHAPTER 6
GROWTH AND EMPLOYMENT IN ICT SERVICE INDUSTRIES
As per the results of 63rd round of NSSO conducted for the services sector during
2006-07 the sub-sector ‘Telecommunications’ contributed the
maximum share,
(80%) in terms of Workforce, whereas it contributed only 15% to the GVA (at current
prices). On the contrary, the sub sector ‘Computer programming activities’
contributed about 80% in terms of GVA, whereas its share in work force was only
about 16%.
The share of different sub sectors among the ICT industries is shown in the table
6.1 and depicted in figures 6.1 and 6.2 below.
Table 6.1 Estimated GVA and Employment in ICT services sector during 2006-07
NIC
2004
NIC 2008
ICT Activity Description
GVA
Rs. million
% of Total
In numbers
% of Total
6420
61*
Telecommunications
96658
15.77
2521847
79.91
7221
5820
Software publishing
18074
2.95
19830
0.63
7229
6201
Computer programming
activities
489441
79.83
518435
16.43
7210
6202
Computer consultancy and
computer facilities
management activities
1383
0.23
3090
0.10
7290
6209
Other information technology
and computer service activities
2814
0.46
51617
1.64
7230
6311
Data processing, hosting and
related activities
1345
0.22
20546
0.65
7240
6312
Web portals
169
0.03
2913
0.09)
7250
9511
Repair of computers and
peripheral equipment
3182
0.52
17439
0.55
613066
100
3155717
100
Total ICT services industries
Source: National Sample Survey Office (NSSO), India, 63rd round (2006-07).
*includes 6110+6120+6130+619
19
Employment
Figure 6.1 Distribution of GVA of ICT service industries 2007-08
80%
1%
3%
16%
Telecommunications
Software publishing
Computer programming activities
Others
Source: National Sample Survey Organisation (NSSO), India, 63rd round (2006-07).
Figure 6.2 Distribution of workforce of ICT service industries 2007-08
80%
1%
3%
16%
Telecommunications
Software publishing
Computer programming activities
Others
Source: National Sample Survey Office (NSSO), India, 63rd round (2006-07).
While it may seem that this data is counterintuitive given the data presented in
Table 5.1 above, there are some caveats to be added here. First, the data
20
presented in Table 5.1 on ICT services is from the National Account Statistics and
the “communications” sector there may be over estimated in so far as that it
includes postal and courier services as well. However, the general trend of a greater
proportion of the ICT sector being computer and computer related activities is seen
in both data sources. Secondly, the data in this NSSO round on services did not
have government enterprises in its ambit, so while this may not have affected the
data on computer and computer related activities, the data on telecommunications
may be a bit understated as the government telephone companies have not been
covered in the 63rd round. Last, given that the ICT services sector contribution to the
ICT sector is so significant and the existing data so scarce, attempts are being
made to officially collect this data.
‐‐‐‐‐‐‐‐‐‐‐‐x‐‐‐‐‐‐‐‐‐‐‐‐‐ 21
Annexure-I
Definitions
Gross Value Added (GVA)
GVA is derived by deducting total Value of input from total Value of output.
Total value of output and input are defined as follows:
Total Value of Inputs:
Total value of inputs for a factory comprises:
(i)
Total value of fuels and materials consumed and
(ii)
Expenditure incurred on the following items:
(a) Cost of contract and commission work done by others on material
supplied;
(b) Cost of material consumed for repair and maintenance work done by
others on factory’s fixed assets;
(c) Postage, telephone and telex;
(d) Insurance and banking charges;
(e) Cost of printing and stationary.
(iii)
Purchase value of goods sold in the same condition as purchased.
Rent and interest paid by the production unit are not included.
Total Value of Outputs:
Total value of outputs for a factory comprises:
(i) Total ex-factory value of products and by-products manufactured.
(ii) Receipts from non-industrial services rendered to others
(iii) Receipts from work done for others on material supplied by them.
(iv) Value of electricity produced and sold.
(v) Sale value of goods sold in the same condition as purchased.
(vi) Value of addition in stock of semi-finished goods
(vii)
Value of own construction.
Rent and interest received by the production unit are not included.
22
Workers
Workers are defined to include all persons employed directly or through any agency
whether for wages or not and engaged in any manufacturing process or in cleaning any
part of the machinery or premises used for manufacturing process or in any other kind of
work incidental to or connected with the manufacturing process or the subject of the
manufacturing process.
Labour engaged in the repair and maintenance or production of
fixed assets for factory’s own use or labour employed for generating electricity or
producing coal, gas etc. are included.
Employees
Employees include all workers defined above and persons receiving wages and
holding supervisory or managerial positions engaged in administrative office, store keeping
section and welfare section, sales department as also those engaged in purchase of raw
materials etc. or purchase of fixed assets for the factory and watch & ward staff.
Persons Engaged
Include the employees as defined above and all working proprietors and their family
members who are actively engaged in the work of the factory even without any pay and
the unpaid members of the co-operative societies who worked in or for the factory in any
direct and productive capacity.
The number of workers or employees is an average number obtained by dividing
man days worked by the number of days the factory had worked during the reference year.
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23
Annexure-II
Sampling Design of ASI
The Annual Survey of Industries (ASI) is a combination of both complete enumeration and
sample survey.
A part of the study units is covered on complete enumeration basis
(Census Sector), while the remaining units are covered on sample basis (sample sector).
The study unit in ASI is a factory in case of manufacturing industries, a workshop in case
of repair services, an undertaking or a licensee in case of electricity, gas and water supply
and an establishment in the case of bidi and cigar industries.
The Census sector comprises:(i) Units employing 100 workers or more;
(ii) Units in the industrially less developed states having few industries;
(iii) All units covered under joint returns; and
(iv) Each Stratum having less than 6 units.
The strata are formed in each state according to the industries under 4 digit
National Industrial Classification Codes. A Stratified sampling design is adopted in
case of sample sector units. At least 6 units are selected from each stratum in the form
of two equal interpenetrating sub-samples independently, applying circular systematic
sampling. In case the number of units in a particular stratum is less than or equal to 6,
these are fully covered. A sample size of approximately 20% of sample sector units is
covered every year by this method, with slight variations in sample size across states,
keeping in view the reliability of the state level estimates, the availability of resources
and the constraint of over-all sample size at the all India level. The industry-wise,
state-wise, industry division-wise, etc. estimates are compiled by applying appropriate
multipliers.
Sample Design of NSS 63rd Round
The broad sample design followed in the earlier rounds of NSSO is a stratified
multi-stage sampling based on the use of area-frame for selection of sample units.
The 63rd round for the first time used a combination of complete enumeration and
24
sample survey and also a combination of List Frame and Area Frame for sample
selection.
In view of large contribution to GDP of the larger Service enterprises and
the instability of the state level estimates arising out of sampling fluctuations i.e.
inclusion/exclusion of the large service enterprises in the sample, it was decided to
use a List Frame of large service sector enterprises to select the study units and
survey these on complete enumeration basis.
A list of
998 big service sector
enterprises spread across all over India was prepared for survey. The list frame
covered both financial and non-financial service sector enterprises. However, out of
these 998 list frame units, only 438 units could ultimately be identified/surveyed.
For the smaller units the Area Frame was used for sample selection. A stratified
multi-stage sampling design was adopted.
The First-stage Units (FSUs) were
villages in rural areas and Urban Frame Survey (UFS) blocks in urban areas. The
ultimate stage units were Service sector enterprises in both Urban & Rural areas.
Very large villages/towns, UFS blocks were divided into hamlet groups (hg)/subblocks (sb), which formed the intermediate stage units for the selection of hgs/sbs
from each FSU.
Design based estimates of selected survey characteristics were obtained
separately for List Frame and Area Frame. Finally these two sets of estimates were
combined to get the pooled estimates for the combined frame at various levels.
-------x-------
25
Annexure-III Sub-sector-wise Gross Value Added in organised ICT manufacturing sector
(in million Rs.)
Source: Annual survey of Industries.
NIC Code
2004
Description
2000-01
2001-02
2002-03
Manufacture
of electronic
components
15777.5
17832.5
19328.4
Manufacture of
computers and
peripheral
equipments
9371.6
11137.4
Manufacture of
communication
equipments
6777.7
Manufacture of
consumer
electronics
Manufacture of
magnetic &
optical media
2003-04
2004-05
2005-06
2006-07
2007-08
19803.6
19019.2
24593.0
25853.2
26873.3
14213.8
19290.8
14986.6
28852.7
22219.1
21835.5
8304.2
8949.8
7980.3
10761.8
14557.8
17277.1
28667.7
15782.7
13122.5
21625.6
20734.6
19099.2
21606.2
16085.7
26379.6
21661.2
24705.2
30019.2
33266.9
32079.1
43352.2
40677.9
43845.6
69370.7
75101.8
94136.8
101076.2
95945.9
132961.9
122113.0 147601.7 2008
3210
2610
3000
2620
3220
2630
3230
2640
2429
2680
Total ICT
sector
-------x-------
26
Annexure-IV
Sub-sector-wise persons engaged in organised ICT manufacturing sector
(in thousands)
NIC code
Description
200001
200102
200203
200304
200405
200506
2006- 200707
08
2004
2008
49.0
48.9
50.5
47.2
49.1
59.3 53.2
69.7
3210
Manufacture of
electronic
2610 components
19.3
19.7
17.8
21.3
25.9
21.8 26.2
28.6
3000
Manufacture of
computers and
peripheral
2620 equipments
30.1
27.3
26.1
24.3
23.2
27.7 24.7
40.1
3220
Manufacture of
communication
2630 equipments
32.9
25.1
29.3
29.1
29.7
28.9 27.2
26.1
3230
Manufacture of
consumer
2640 electronics
162.9
148.1
160.7
146.3
154.4
151.1 147.9 152.5
2429
Manufacture of
consumer
2680 electronics
294.2
269.1
284.4
268.2
282.3
288.8 279.2 317.5
Total ICT
sector
Source: Annual survey of Industries.
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