Distinguish between Registered and Unregistered Manufacturing Units.

Manufacturing units are of two types: registered or organized manufacturing and unregistered or unorganized manufacturing. Registered manufacturing are those units which employs at least 10 workers. if using power and employs at least 20 workers if not using power. Rest of the manufacturing units, are categorized as unregistered.

Registered Manufacturing:

All the registered manufacturing is classified into 20 industry groups. The estimates of GVA are calculated for the 20 groups using production method. Here value of output will include:

  • Ex-factory value of all products and by products.
  • Receipts obtained for industrial and non-industrial services rendered to other.
  • Value of fixed assets produced for own use.
  • Net balance of goods sold in same condition as purchased.

Intermediate consumption will comprise:

  • Value of raw-materials, chemicals, packing, material etc. used for production.
  • Fuel, electricity, water consumed.
  • Cost paid to others for non-industrial services.
  • Cost of office supplies.
  • Cost of contract and commission for the work done by others, and
  • Cost of material consumed for repair and maintenance.

To obtain GVA at constant prices, GVA at current prices is deflated with the use of relevant price indices.

Unregistered Manufacturing:

First of all industry wise GVA is estimated as product of workforce and corresponding GVA per worker. Here, the estimates are obtained for base year and then carried forward on the basis of indicators. Thus,
Current price estimates = Constant price estimates X corresponding wholesale price indices.

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