A New Chapter in India’s Statistical Ecosystem: The ASSSE Pilot Study

India's service sector is an economic powerhouse, contributing over 50% to the national GDP and supporting millions of jobs.

 

In a landmark move to bridge critical data gaps in India’s services sector, the Ministry of Statistics and Programme Implementation (MoSPI) conducted a pilot study—Annual Survey of Services Sector Enterprises (ASSSE)—across two well-structured phases during 2024–25. This pioneering effort targets incorporated enterprises in the service sector, drawing from the Goods and Services Tax Network (GSTN) database for the first time as a sampling frame. The pilot lays the groundwork for launching a robust, full-scale annual survey in January 2026.

Background and Need for the Pilot Survey

India's service sector is an economic powerhouse, contributing over 50% to the national GDP and supporting millions of jobs. Yet, the statistical infrastructure around incorporated service sector enterprises has remained weak, with existing surveys like the Annual Survey of Unincorporated Sector Enterprises (ASUSE) focusing primarily on unregistered entities.

The absence of a comprehensive, recurring national-level dataset for incorporated service sector units—including those engaged in trade, construction, transport, health, education, and IT services—has long hindered informed policymaking, sectoral analysis, and targeted investment strategies. To address this gap, the ASSSE pilot was designed to test the feasibility and operational readiness of using the GSTN database for regular statistical exercises.

Phased Execution of the Pilot Study

The pilot was rolled out in two distinct phases using CAPI (Computer-Assisted Personal Interviewing) methodology on digital tablets, emphasizing data collection efficiency and verification rigor.

Phase I: Verification and Frame Update (May–August 2024)

• Enterprises Covered: 10,005 service sector entities from the GSTN database.

• Focus: Validate and update address and operational details, verify nature of business, and collect baseline quantitative data (e.g., employment, gross sales).

Phase II: Full Survey Implementation (Nov 2024–Jan 2025)

• Enterprises Covered: 5,020 eligible units from Phase I.

• Mandate: Collected under the Collection of Statistics Act, 2008 (Amended 2017).

• Focus: Test data collectability, enterprise response, clarity of instructions, questionnaire efficacy, and availability of financial records (books of accounts, profit & loss, labor registers).

Definitional Scope and Methodological Approach

The survey adopted an 'enterprise approach'—where an enterprise is defined as a GSTIN unit operating in a state. As per GSTN norms, this ‘enterprise’ or ‘principal place of business’ may also include one or more 'additional places of business' (establishments), and data from these were aggregated under the main business unit.

The pilot sample focused on units registered under the Companies Act, 1956, Companies Act, 2013, or the LLP Act, 2008, ensuring the inclusion of legitimate and structured business entities.

Key Operational Insights from the Pilot

• Enterprise Presence: The majority of surveyed units were found to be operational.

• Headquarter Complications: Data collection was difficult for units whose administrative HQs were located in other states—largely due to centralised financial recordkeeping (often CIN-based).

• Cooperative Respondents: Most units were willing to furnish relevant data.

• Ease of Use: Survey tools and questionnaires were largely found to be clear, user-friendly, and adequately structured for the intended data collection.

• Coverage of Additional Locations: Around 28.5% of enterprises reported additional places of business within the state; this was particularly high in the Trade sector (41.8%).

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Preliminary Findings: Snapshot from Unweighted Sample

Organizational Composition

• Private Limited Companies dominated the sample at 82.4%, followed by Public Limited Companies and LLPs (~8% each).

• This trend was consistent across Construction, Trade, and Other Services.

Economic Indicators by Size Class (FY 2022–23)

Size Class (Output ₹)	Share of Fixed Assets (%)	Share of GVA (%)	Share of Total Employment (%)	Share of Compensation (%)
< ₹10 crore	2.64	1.19	9.28	3.17
₹10–100 crore	9.58	9.45	20.03	11.43
₹100–500 crore	25.00	19.90	33.73	22.24
> ₹500 crore	62.77	69.47	36.96	63.17

• Larger firms (output > ₹500 crore) held a commanding share in terms of assets, capital formation, and compensation, though smaller firms accounted for over 63% of employment.

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Strategic Value and the Way Forward

This pilot is a milestone in the evolution of India’s statistical architecture. It not only validated the GSTN database as a viable sampling frame for enterprise surveys but also confirmed the feasibility of using enterprise-maintained records for data collection. The operational feedback has provided valuable direction to fine-tune methodologies, tools, and outreach strategies for the full-scale rollout in 2026.

The full-fledged Annual Survey on Services Sector Enterprises (ASSSE) will offer granular, actionable insights into:

• Capital investments and formations

• Gross and net value added

• Employment structure

• Compensation metrics

• Sector-wise and state-level performance

Important Caveat

It must be noted that the pilot was not intended for statistical estimation. With a relatively modest sample and the absence of design-based weights, the indicators drawn—though insightful—are not representative at the national or sectoral level. They serve the primary goal of testing and refining survey modalities.

 

By establishing the operational feasibility of an annual survey on the incorporated service sector, the pilot lays a critical foundation for more data-driven governance, investment planning, and economic policy formulation in India. The full-scale ASSSE from 2026 promises to fill longstanding information voids and usher in a new era of statistical reliability and sectoral intelligence.

For more information and technical details, the official report is available on the MoSPI website.