A pilot survey conducted by the Ministry of Statistics and Programme Implementation has provided key findings on the operational dynamics of India’s incorporated service sector, setting the stage for a full-scale annual survey beginning in January 2026. The study highlights how enterprises with output of 500 million rupees and above dominate in terms of asset ownership, net fixed capital formation, gross value added, and total compensation. The data indicates that these larger enterprises account for 62.77 percent of total assets, 62.73 percent of net fixed capital formation, 69.47 percent of gross value added, and 63.17 percent of total compensation.
Conversely, enterprises with an output below 500 million rupees contribute significantly to employment, accounting for 63.03 percent of total jobs while comprising 36.84 percent of total compensation. The survey also found that 28.5 percent of enterprises reported additional places of business within the same state, with the trade sector recording the highest percentage at 41.8 percent.
The pilot study under the Annual Survey of Services Sector Enterprises marks a significant milestone in strengthening India’s statistical framework for the service sector, which contributes more than half of the country’s GDP and supports millions of jobs. The findings confirm the suitability of the GSTN database as a sampling frame and emphasize the importance of validation in survey processes, including data collection from enterprise records and overcoming survey-related challenges.
The study underscores the necessity of refining the sampling design, optimizing sample size determination, and improving the questionnaire structure based on consultations with major stakeholders. These insights will serve as the foundation for establishing a comprehensive statistical infrastructure to assess the evolving dynamics of India’s service sector and its role in economic growth.
