{"id":242632,"date":"2023-05-16T21:17:48","date_gmt":"2023-05-16T15:47:48","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=242632"},"modified":"2023-05-16T21:17:48","modified_gmt":"2023-05-16T15:47:48","slug":"measuring-indias-manufacturing-sector-remains-a-data-challenge","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/measuring-indias-manufacturing-sector-remains-a-data-challenge\/","title":{"rendered":"Measuring India\u2019s manufacturing sector remains a data challenge"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201c<\/strong>Measuring India\u2019s manufacturing sector remains a data challenge<\/strong>\u201d published in Live Mint <\/strong>on\u00a016th<\/sup> May 2023<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 <\/strong>Growth & Development, Infrastructure<\/strong><\/p>\n

Relevance: <\/strong>concerns associated with the calculations of MCA21<\/p>\n

News<\/strong>: The article discusses the advantages and limitations of the Ministry of Corporate Affairs (MCA) 21 data-set.<\/p>\n

About MCA21 data-set<\/strong><\/h2>\n

The MCA21 data-set was introduced in place of the Annual Survey of Industries (ASI) to expand coverage of the organized sector.<\/p>\n

This data set along with manufacturing also includes service-sector companies in its calculations unlike the ASI.<\/p>\n

How is MCA21 data set different from ASI?<\/strong><\/h2>\n

The MCA21 represents an administrative dataset, fundamentally distinct in structure from the ASI.<\/p>\n

The implementation of such datasets for national accounting purposes is a difficult venture because it requires substantial collaboration among ministries to understand data gathering procedures, definitions, aims, etc.<\/p>\n

These data sets are not collected or generated via any statistical design<\/strong>, schedule or questionnaire intended for statistical purposes.<\/p>\n

As a result, the statistical agency struggles with data structures derived from<\/strong> regulatory practices, accounting standards, and the administrative processes of the ministry in charge of data creation, over which it has no authority.<\/p>\n

Thus, the shift from ASI to MCA included replacing survey data with administrative data<\/strong>, which introduced many new challenges.<\/p>\n

What are the advantages of the MCA21 data set?<\/strong><\/h2>\n

The MCA21 data offers a broad aggregate picture of our corporate sector<\/strong>. It offers wider coverage data, offers broader scope to estimate value addition, and offers a faster way to prepare annual estimates.<\/p>\n

What are the limitations of the MCA21 dataset?<\/strong><\/h2>\n

Improper Classification:<\/strong> The MCA21 dataset has both manufacturing and service-sector companies unlike the ASI. However, MCA21 lacks clear identifiers of economic activity <\/strong>within the registered entities for correctly classifying companies into respective sectors.<\/p>\n

MCA21 provides information on the product-level revenue of enterprises. However, the problem comes in the case of diversified enterprises<\/strong> that have multiple products and services and operate at several locations.<\/p>\n

Therefore, in such scenarios, sector-wise estimates are distorted by misclassification<\/strong>, and data available are inconsistent with other metrics of industrial activity.<\/p>\n

Lack of Geographical Indicators:<\/strong> The MCA21 data also lacks geographical indicators, making it problematic for computing state-level aggregates.<\/p>\n

Lacks Quality Data:<\/strong> The MCA adds companies on a monthly basis and de-registers companies as per the norm of de-registration.<\/p>\n

GDP data from 2012-17 showed that on average, about 60% of active companies file their financial statements and are thus available for estimation. These companies are considerably different from the universe captured by ASI.<\/strong><\/p>\n

Therefore, a year-on-year mapping of ASI and MCA is required<\/strong> to get the clear data from the shift.<\/p>\n

Lack of Data for Unorganized Manufacturing Sector:<\/strong> There are limitations to find data for the unorganized manufacturing sector because there has been transformation in the enterprise landscape, particularly after GST implementation and due to the effect Covid.<\/p>\n

Measurement errors:<\/strong> GVA values are extended by using MCA growth rates<\/strong> for the organised sector, which might result in considerable measurement errors.<\/p>\n

Therefore, in such situations, it is difficult to examine India’s manufacturing industry because, despite changes in data and methodology, it has introduced new complexity.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cMeasuring India\u2019s manufacturing sector remains a data challenge\u201d published in Live Mint on\u00a016th May 2023. Syllabus: GS 3 \u2013 Growth & Development, Infrastructure Relevance: concerns associated with the calculations of MCA21 News: The article discusses the advantages and limitations of the Ministry of Corporate Affairs (MCA) 21 data-set.… Continue reading Measuring India\u2019s manufacturing sector remains a data challenge<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-242632","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704754067},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/242632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=242632"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/242632\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=242632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=242632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=242632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}