India had 14.5 million enterprises in the unorganised service sector, employing over 26 million people in 2001-02. These enterprises contributed Rs 748 billion to the economy, according to the 57th round of the National Sample Survey Organisation.
Compared to unorganised manufacturing, covered in the 56th round, the services sector is a more productive segment. In unorganised manufacturing, 17 million enterprises and 37 million workers contributed a gross value added (GVA) of Rs 602 billion to the economy in 2000-01.
The annual GVA per worker (GVAPW) in unorganised services was Rs 28,160 as against an annual GVAPW of Rs 16,233 in unorganised manufacturing.
The 57th round survey, conducted between July 2001 and June 2002, collected information on the characteristics of the enterprises, employment, and value added in the unorganised services sector.
A broad range of services was covered including engaged in activity of hotels and restaurants, transport, storage and communication, real estate, renting and business activities, education, health and social work and other community, social and personal service activities.
The survey, however did not cover service sector enterprises pursuing the activities of wholesale and retail trade, repair of motor vehicles, motor cycles and personal and household goods, financial intermediation, public administration and defence, private households with employed persons and extra territorial organisations and bodies.
The GVAPW varied considerably across types of activities. The survey captured more than 2000 enterprises having either more than 100 workers or reporting an annual value addition of more than Rs 1 million.
The proportion of such enterprises was relatively high in storage and warehousing, hotels, education and health activities. At the top end was a GVAPW of Rs 1,57,507 for storage and warehousing activities in urban establishments.
The rural-urban divide is also quite stark, with GVAPW in rural enterprises at Rs 20,002, almost half of the Rs 37,361 in urban enterprises.
Emoluments in rural areas were also lower than in urban ones. The average annual emoluments of a hired worker in the service sector was Rs 24,631. In rural areas, it was Rs 19,265 and in urban areas, Rs 27,849 per year.
Of the total employment in this sector, 27 per cent was in 'transport, storage and communication', followed by 'other community, social and personal services at 20 per cent. Another 19 per cent of the employment was in the hotels and restaurants segment.