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The Importance of Economic Census in UPSC Preparation

A Comprehensive Guide to Economic Census for Aspiring Civil Servants

The Importance of Economic Census in UPSC Preparation

  • 02 Apr, 2025
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Understanding the Role of Economic Census in the Civil Services Examination

The Economic Census holds a significant place in the Civil Services Examination, particularly in General Studies Paper III, which covers Indian economy, resource planning, growth, development, and employment. It is equally relevant to General Studies Paper II, focusing on governance and policy implementation, and plays a role in the Preliminary Examination under current events of national importance.

Main Objective of the Economic Census

The primary goal of the Economic Census is to gather intricate data on entrepreneurial units engaged in economic activities. This excludes activities like crop production and public administration. The collected data supports evidence-based policy planning, monitors economic performance, and enhances local-level economic analysis.

Difference Between Economic Census and Population Census

While the Population Census enumerates individuals and their demographic characteristics, the Economic Census focuses on establishments. It records economic variables such as employment, ownership types, activity nature, and resource usage.

Conduct and Frequency of the Economic Census

The Ministry of Statistics and Programme Implementation (MoSPI), in collaboration with state and UT governments, conducts the Economic Census. It is not an annual event but occurs at periodic intervals. The latest, the 7th Economic Census, was held during 2019–2020.

Data Collection in the Economic Census

The Economic Census collects data on:

  • Number and type of establishments
  • Employment (gender-wise, paid/unpaid)
  • Nature of operation (seasonal/perennial)
  • Type of ownership (individual, partnership, etc.)
  • Use of power, finance sources, and registration status

Significance for Micro-Level Planning

The Economic Census is crucial for micro-level planning as it helps identify the distribution of economic units at local levels. This data assists in district and block-level planning, targeted schemes, infrastructure development, and employment generation monitoring.

Innovations in the 7th Economic Census

The 7th Economic Census introduced digital data collection through mobile applications developed by CSC-SPV (Common Service Centres – Special Purpose Vehicle). This innovation ensured faster data processing and real-time monitoring.

Relevance in UPSC Preparation

Knowledge of the Economic Census enhances understanding of India’s informal sector, employment trends, regional disparities, and economic structure. These insights are vital for answering questions, composing essays, and excelling in interviews during the Civil Services Examination.

Inclusion of the Agricultural Sector

The Economic Census partially includes agriculture by covering agricultural establishments such as dairies and poultry farms. However, it excludes crop production and plantations.

Role in Policy Formulation

The Economic Census serves as a foundation for designing development schemes, evaluating business environment reforms, and identifying areas requiring financial inclusion or skill development initiatives. As aptly stated, “A true public servant finds strength not in authority, but in understanding the realities of those he is meant to serve.”

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