- The Finance Ministry on Friday clarified that the ‘missing’
enterprises in the MCA-21 database did not have a significant impact on the
calculation of growth rates of Gross Domestic Product (GDP) and Gross Value
Added (GVA) as these companies still added to the total output of the
The National Sample Survey Organisation (NSSO) in a
recent survey report on the service sector found that, of a sample of 35,456
companies taken from the MCA-21 database, 38.7% were out-of-survey unit.
The Finance Ministry explained that of the 38.7%
out-of-survey enterprises in the NSSO report, out-of-coverage enterprises
comprised 21.4%. These out-of-coverage enterprises were those that were not
engaged in activities intended for inclusion in the service sector survey.
The Ministry provided data to show that from 2012-13
to 2016-17, the number of enterprises whose annual returns were not
available for GDP estimation accounted for just 12-15% of the paid-up
capital of all the enterprises in the MCA-21 database.
Lastly, the Ministry explained that while the blowing
up affects the level of GDP, it does not affect the year-on-year annual
growth rates in any material way.