NEW DELHI: The government has said enterprises excluded from the services sector survey are involved in some form of economic activity, making them eligible for inclusion in estimation of the gross domestic product (GDP). It faced criticism ever since it was released in 2015 because of a wide divergence in growth from earlier estimates.According to the NSSO report , 35,456 entities were categorised as out-of-survey enterprises. Of the 38.7% out-of-survey enterprises in the NSSO report, out-of-coverage enterprises make up for 21.4%.“The out-ofcoverage enterprises are simply those enterprises that are not engaged in activities intended for inclusion in the services sector survey,” it said. These enterprises are engaged in, for instance, manufacturing sector, said the statement.“As a result, they cannot be classified as out-of-coverage enterprises for the purpose of estimating the GDP.”It added that out-of-coverage enterprises are very much a part of the overall GDP. The ministry said that of the remaining 17.3% out-of-survey enterprises, 0.9% are establishments that are not considered in the MCA database for GDP estimation.

Source: Economic Times May 10, 2019 14:29 UTC