The Union Ministry of Statistics and Programme Implementation has started work on the eighth economic census, which formally gets underway next year, despite the results of the seventh edition yet to be made public, sources told Moneycontrol.

Quality concerns have led to an inordinate delay in the release of results of the seventh economic census.

Of the 27 states (excluding West Bengal) and eight union territories (UTs), 22 of them did not grant approval till last December. Twelve states did not approve the provisional results.

“We have to close the chapter on the seventh economic census before moving on with the eighth edition,” said an official.

What is an economic census? 

The economic census provides disaggregated information on various operational and structural variables of all establishments of the country.

The exercise provides valuable insights into geographical spread/clusters of economic activities, ownership pattern, persons engaged, etc. of all economic establishments.

The information collected during this census are useful for socio-economic developmental planning at state and district levels. The practice  provides an updated sampling frame for follow-up enterprise surveys undertaken for detailed and comprehensive analysis of all establishments across the nation.

The ministry’s directive

The central government has asked states and UTs to submit requirements for funds and manpower in a bid to start work on the eighth economic census. The states and UTs are required to set up a dedicated unit to conduct the exercise.

This time around, the ministry seeks better coordination with states and UTs to ensure obtaining results on time.

What's the fate of the seventh edition?

Though the data collection process for the seventh edition of the census was started in 2019, the exercise could only be completed in 2021 because of disruptions owing to the  Covid-19 pandemic.

“It would be too late by the time the results of the previous census are made public. So, we need to start the new exercise in earnest,” said another official.

The seventh edition is aimed at creating a business register complete with a geo-tagged database of all firms in the country.

Data from the sixth edition, which was conducted in 2013 and the results were released in 2016, showed that there were 58.5 million pan-Indian establishments, providing employment to 131 million people.