What is the coverage and significance of the Annual Survey of Industries (ASI)?

Sunrise Classes
Sep 11
2 min read

Answer:

The Annual Survey of Industries (ASI) is the principal source of industrial statistics in India. It has been conducted annually by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) since 1959.

Coverage:
1. Sector covered: Registered manufacturing and repairing units.
2. Frame: Derived from the Factories Act, 1948, i.e., factories registered with:
  - Sections 2(m)(i) and 2(m)(ii) → 10 or more workers with power, or 20 or more workers without power.
  - Bidi and cigar establishments under Section 85.
3. Exclusions:
  - Defense establishments,
  - Oil storage and distribution depots,
  - Repair services not covered under registered factories,
  - Some small units.
Significance:
1. National Accounts: Provides data for estimating Gross Value Added (GVA), industrial GDP, and input-output ratios.
2. Industrial Policy: Helps in framing policies on investment, employment, wages, and productivity.
3. Research & Planning: Offers detailed info on employment, capital, input costs, output, value addition, and profits.
4. Benchmarking tool: Used for revising base years of national accounts and IIP.

👉 In short, ASI provides a comprehensive database on organized industry in India, essential for economic statistics, policymaking, and academic research.

Cross-question:

How does ASI data differ from IIP (Index of Industrial Production)?

Objective:
- ASI: Measures structural aspects (output, input, capital, employment, wages, etc.) annually.
- IIP: Measures short-term production trends on a monthly basis.
Coverage:
- ASI: Covers all registered factories in manufacturing and repair sectors.
- IIP: Covers a sample of items (currently ~800+) representing industries.
Frequency:
- ASI: Annual.
- IIP: Monthly (high frequency).
Nature of Data:
- ASI: Establishment-based, detailed, used for GDP.
- IIP: Item/production-based, quick indicator, not detailed.