India - Service Sector: NSS 63rd Round, Schedule 2.345, July 2006 - June 2007

Sampling Procedure
Outline of sample design:
Two frames have been used for the 63rd round survey viz. List frame and Area frame.
List frame:
A list of 1000 service sector companies distributed all over India has been used as list frame. The list of financial
sector enterprises has been supplied by RBI. For the other service sector enterprises the list has been supplied
by the Ministry of Company Affairs.
For all the companies in the list frame, information will be collected considering all the branch offices. A combined
schedule 2.345 is to be filled up for the list frame companies covering all the branches.
All these companies in the list frame will be surveyed. However, these companies and their branch offices will be
excluded from the coverage of the area frame survey to avoid duplication.
There is no sub-round restriction for the list frame units.
All the enterprises in the list frame are common to both central and state samples.
The list frame units will be surveyed by the central agency only. Validated data regarding list frame units will be
supplied by DPD to the respective State agencies.
Area frame:
A stratified multi-stage design has been adopted for the 63rd round survey. The first stage units (FSU) will be the
2001 census villages (Panchayat wards in case of Kerala) in the rural sector and Urban Frame Survey (UFS)
blocks in the urban sector. In addition, for the newly declared towns and out growths (OGs) in census 2001 for
which UFS has not yet been done, a separate list has been prepared and these list has been used as a frame for
such towns and OGs in urban sector. For these towns and OGs the whole town/ OG will be considered as FSU.
The ultimate stage units (USU) will be households/ service sector enterprises, in both the sectors. In the case of
large villages/ towns/ blocks requiring hamlet-group (hg)/ sub-block (sb) formation, one intermediate stage will be
the selection of hgs/ sbs from each FSU.
The list of villages as per census 2001 has been used as frame for the rural sector.
In the urban sector, three kinds of frames have been used:
(a) For the 27 towns with population 10 lakhs or more (as per Census 2001), EC-98 has been used as frame.
(b) For other UFS towns, the latest available list of UFS blocks has been used as frame.
(c) For non-UFS towns list of such towns/ OGs has been used as frame.
Stratification: Within each district of a State/ UT, two basic strata have been formed:
i) rural stratum comprising of all rural areas of the district and (ii) urban stratum comprising of all the urban areas
of the district. However, if there are one or more towns with population 10 lakhs or more as per population census
2001 in a district, each of them will also form a separate basic stratum and the remaining urban areas of the
district will be considered as another basic stratum. There are 27 towns with population 10 lakhs or more at all-
India level as per census 2001.
Sub-stratification for area frame:
Rural sector: If 'r' be the sample size allocated for a rural stratum, the number of sub-strata formed was 'r/2'. The
villages within a district as per frame was first arranged in ascending order of population. Then sub-strata 1 to 'r/2'
have been demarcated in such a way that each sub-stratum comprised a group of villages of the arranged frame
and have more or less equal population.
Urban sector:
(a) For the 27 cities where EC-98 frame have been used: A number of sub-strata have been formed within each
stratum based on EC-98 information as under:
- sub-stratum 1: all FSUs having at least one establishment (i.e. enterprise with at least one hired worker) of
Financial sector (NIC 2004 codes: 659, 66, 67) under coverage of survey.
- sub-stratum 2: all FSUs, excluding those in the already formed sub-stratum 1, having at least one establishment
under coverage of survey belonging to any of the NIC 2004 codes: 72, 73, 92.
- sub-stratum 3: all FSUs, excluding those in the already formed sub-strata, having at least one establishment
under coverage of survey belonging to any of the NIC 2004 codes: 61, 6302, 70, 71, 90, 9191, 9199.
- sub-stratum 4: all FSUs, excluding those in the already formed sub-strata, having at least one establishment
under coverage of survey belonging to any of the NIC 2004 codes: 602, 6301, 6303, 6304, 6309, 85.
- sub-stratum 5: all FSUs, excluding those in the already formed sub-strata, having at least one establishment in
any one of the Section H, I, J, K, M, N, O of NIC 2004 under coverage of survey.
- sub-stratum 6: all FSUs, excluding those in the already formed sub-strata, having at least one own account
enterprise (OAE) i.e. enterprise with no hired worker in any one of the Section H, I, J, K, M, N, O of NIC 2004 -
under coverage of survey.
- sub-stratum 7: rest of FSUs of the stratum.
(b) For other cities and towns of urban stratum of a district: Three sub-strata were formed as follows:
sub-stratum 1: all UFS blocks (as per the latest UFS) identified as Industrial Area (IA) or Bazar Area (BA) or
Hospital Area (HA) or Slum Area (SA).
- sub-stratum 2: remaining UFS blocks.
- sub-stratum 3: non-UFS towns/ OGs of Census 2001
Total sample size: 13997 FSUs for area frame and 1000 service sector companies for list frame have been
allocated at all-India level for central sample on the basis of investigator strength. For state sample, 16892 FSUs
have been allocated for area frame.
Allocation of total samples to States and UTs: The total (all-India) sample FSUs have been allocated to the States
and UTs in proportion to number of workers in service sector enterprises as per EC '98 engaged in the activities
under coverage of the survey subject to the availability of investigators ensuring more or less uniform work-load
per investigator. (Hereafter, "workers" will mean workers in service sector enterprises as per EC '98 engaged in
the activities under coverage of this round).
Allocation of State/ UT level sample to Rural and Urban sectors: State/UT level sample sizes have been allocated
to rural and urban sectors in proportion to the total number of workers.
Allocation to strata: Within each sector of a State/UT, the respective sample size has been allocated to the
different strata in proportion to the stratum population as per census 2001.
Allocation to sub-strata:
Rural sector: Allocation to each sub-stratum was 2 except in a few sub-strata.
Urban sector: For 27 million plus cities in the urban sector, stratum allocations have been distributed over the substrata
in proportion to the number of workers.
For other urban strata, maximum of 2 FSUs were allocated to sub-stratum 3. Rest of the stratum allocation were
divided among the sub-strata 1 & 2 in proportion to number of FSUs in the sub-strata with double weightage to
sub-stratum 1. Minimum sub-stratum allocation was 2 for sub-strata 1 & 2.
Selection of FSUs: Samples have been drawn in the form of two independent sub-samples in each stratum × substratum.
Rural sector: FSUs have been selected by PPSWR with size as 'other workers' (i.e. total workers - household
industry workers - agricultural labourers - cultivators) as per census 2001.
Urban sector:
(a) For 27 million plus cities: FSUs have been selected by PPSWR with number of workers as size.
(b) For other cities/towns: FSUs have been selected by SRSWOR.
Selection of hamlet-groups/ sub-blocks/ households/ enterprises - important steps
Formation of segment 9: All non-agricultural enterprises having 50 or more workers in the entire FSU and having
operated at least one day during last 365 days preceding the day of survey (hereinafter to be called as 'big'
enterprises for brevity) are listed and all the eligible units under coverage are surveyed. All the listed big units
(whether under coverage or not) constitute segment 9. All eligible enterprises under coverage are surveyed in
segment 9.
Criterion for hamlet-group/ sub-block formation: Having constituted segment 9 as stated above, it is determined
whether listing is to be done in the whole sample FSU or not. For this, approximate present population (P) and
approximate total number of non-agricultural enterprises (E) for the whole FSU may be ascertained first from
knowledgeable persons. Depending upon the values of 'P' and 'E', it is divided into a suitable number (say, D) of
'hamlet-groups' in the rural sector and 'sub-blocks' in the urban sector as stated below.
population (P) | no. of hgs/ sbs to be formed | no. of non-agricultural enterprises (E) | no. of hgs/ sbs to be formed
less than 1200 | 1 | less than 120 | 1
1200 - 1599 | 4 | 120 - 159 | 4
1600 - 1999 | 5 | 160 - 199 | 5
2000 - 2399 | 6 | 200 - 239 | 6
and so on …
However, while considering enterprise criteria, segment 9 enterprises, if any, are excluded i.e. the value of
'E' above may be adjusted in respect of the number of enterprises in segment 9. For rural areas of Himachal
Pradesh, Sikkim and Poonch, Rajouri, Udhampur, Doda districts of Jammu and Kashmir and Idukki district of
Kerala, the number of hamlet-groups are formed as follows.
Approximate present population of the sample village | no. of hgs to be formed
Less than 600 (no hamlet-groups) | 1
600 to 799 | 4
800 to 999 | 5
1000 to 1199 | 6
…..and so on
For enterprise criterion, procedure is not to be changed for the above areas.
The higher of the two values as per population and enterprise criteria is accepted as the number of hgs/ sbs to be
actually formed.
Formation of hamlet-groups/ sub-blocks: In case hamlet-groups/ sub-blocks are formed in the sample FSU, the
same is done by more or less equalizing population. However, it is ensured that the hamlet-groups/ sub-blocks
formed are clearly identifiable in terms of physical landmarks.
Formation of segments 1 and 2: After formation of hg / sb in the large FSUs, three hg's/ sb's are selected for
listing in the following manner - with maximum number of service sector enterprise under survey coverage, failing
which, with maximum number of non-agricultural enterprises, failing which, with maximum percentage share of
population will always be selected and termed as Segment 1; two more hgs/ sbs are selected with SRSWOR and
combined to constitute Segment 2.
Listing of households/ enterprises and formation of their frame: Having determined the area(s) to be considered
for listing, the next step is to list all the households and non-agricultural enterprises (NAEs) [including those found
to be temporarily locked after ascertaining temporariness of locking of households/ NAEs through local enquiry].
Although all non-agricultural enterprises are to be listed, only the service sector enterprises as given in para 2.1
are covered for the survey. Thus, Govt. service sector enterprises / PSUs/ enterprises under the coverage of ASI
frame (2004 - 05) are not be considered for survey. Further, those service sector enterprises which operated for
at least 30 days (15 days for seasonal enterprises) during the reference year (i.e. last 365 days preceding the
date of survey) qualify for survey. Such enterprises will hereafter be referred to as 'eligible enterprises'.
Listing and selection of enterprises/ households are done separately for segment 1 and segment 2. For segment
2, hg/sb with order of selection number 1 may be listed first and that with order of selection number 2 is listed
next but selection of enterprises/ households are made from the combined list.
Formation of Second Stage Strata and allocation of households for schedule 1.0:
For rural sector in each selected village/ segments, three second stage strata (SSS) namely SSS 1, SSS 2 & SSS
3 are formed. Households with any member who worked for at least one day in any public works scheme of Govt.
during last 365 days constitute SSS 1. Out of the remaining households SSS 2 and SSS 3 are formed on the
basis of land possessed by household.
A cut-off point 'X' (in hectares) is determined at State/UT level from NSS 59th round data in such a way that top
20% of the rural households possessed land equal to or more than X. Out of the remaining (other than SSS 1)
households all the listed households possessing land less than X will be in SSS 2 and the rest of the households
will be in SSS 3.
For urban sector in each selected block/ segments, two second stage strata (SSS) namely SSS 2 & SSS 3 (there
is no SSS 1 for urban sector) are formed on the basis of household MPCE.
In the urban sector, a cut-off point 'A' (in Rs.) is determined at NSS state-region level from NSS 61st round data
in such a way that top 20% of the households had MPCE equal to or more than 'A'. All the listed households with
MPCE less than 'A' will be in SSS 2 while the rest of the households will be in SSS 3.
The no. of households to be surveyed for sch. 1.0 is 6 in a rural FSU and 4 households in an urban FSU.
Composition of SSS with no. of households to be surveyed for sch. 1.0 are as follows:
SSS | composition of SSS | no. of households to be surveyed for sch. 1.0
without hg/ sb formation | with hg/ sb formation (for each segment)
rural
SSS 1: households with at least one member who worked for at least one day in any public works scheme during
last 365 days. | 2 | 1
SSS 2: of the remaining hhs.; households with land possessed < X | 2 | 1
SSS3 other households | 2 | 1
urban
SSS 2: households with MPCE < A | 2 | 1
SSS 3: other households | 2 | 1
Selection of households for Schedules 1.0: From each SSS the sample households for schedule 1.0 are selected
by SRSWOR.
Formation of Second Stage Strata and allocation of enterprises for schedule 2.345:
In each of the segments 1, 2 and 9 of the sample FSU, eligible enterprises under coverage are divided into 8
(eight) second stage strata (SSS) as follows:
(i) establishments:
SSS 1 - financial intermediation excluding monetary intermediation but including money lending, self help group
(SHG), co-operative credit society (659), insurance and pension funding except compulsory social security (66),
activities auxiliary to financial intermediation (67)
SSS 2 - storage and warehousing (6302), computer and related activities (72), research and development (73)
SSS 3 - water transport (61), sewage and refuse disposal, sanitation (90), membership organizations (91)
SSS 4 - hotels etc. (551), supporting and auxiliary transport activities, activities of travel agencies excluding
storage and warehousing (6301, 6303, 6304, 6309), post and courier activities (641), real estate (701),
architectural, engineering etc. (742), advertising (743), human health (851), motion pictures, radio, TV and other
entertainment (921)
SSS 5 - rest of the establishments
(ii) OAEs:
SSS 6 - financial intermediation excluding monetary intermediation but including money lending, self help group
(SHG), co-operative credit society (659), insurance and pension funding, except compulsory social security (66),
activities auxiliary to financial intermediation (67)
SSS 7 - real state (70), computer and related activities (72), research and development (73),
other business activities (74)
SSS 8 - rest of the OAEs
The number of enterprises to be surveyed for schedules 2.345 in each FSU are as follows (excluding big
enterprises in segment 9).
SSS no. | number of enterprises to be surveyed for schedule 2.345
without hg/ sb formation | with hg/ sb formation (for each segment)
1 | 2 | 1
2 | 2 | 1
3 | 2 | 1
4 | 4 | 2
5 | 4 | 2
6 | 2 | 1
7 | 4 | 2
8 | 4 | 2
total | 24 12
From each SSS the sample enterprises for schedule 2.345 are selected by SRSWOR.

There was no deviation from the original sampling design

WGT- Multiplier has been provided along with NS Count for sub-sample and combined. The weighting factor has been computed as posted in each record as per the following formula:

HHMLT=HHMLT/100 if NSS==NSC;
and HHMLT=MLT/200 if NSS!=NSC;