Business Register of Sikkim 2016-17 Directorate of Economics, Statistics, Monitoring and Evaluation Government of Sikkim Gangtok 1 2 BUSINESS REGISTER 2016-17 FOREWORD The 13th Finance Commission recommended the State Governments for “Improvement of Statistical Systems at State and District levels” and one of its recommendations was to develop the National Business Register. Business Register is a list of establishments pursuing various economic activities relating to production/distribution of goods and services. It is an important source of information for statistical analysis of the business population and will serve the purpose of a frame for follow up surveys and Business Projects. Business Register has been taken-up as per the guidelines of Central Statistics Office, New Delhi. All establishments registered under the Companies Act, Factories Act, Shops and Commercial Establishments Act, Sikkim Excise Act, Societies Registration Act, Co-op Societies Act, Khadi Village Industries Board and Directorate of Industries have been considered for preparation of Business Register. The preparation of Business Register entailed the study of the Trade License registering system of the State wherein a number of incongruities were observed. Therefore, administrative process re-engineering was undertaken by the Registering Authorities which involved designing of a uniform trade license form, form for renewal, standardized BR number and so on. The State Business Register contains important parameters such as name and address of the establishment, number of workers, major economic activity of the establishment and registration numbers of the establishments with Registration Authorities. However, the information with respect to the total number of workers and establishments registered under Companies Act is under-reported as the digitization of records and the requisite data has not been collected by the Registering Authorities. Further, data on the number of establishments & number of workers could not be obtained from UD&HD(Mangan), UD&HD(Gyalshing) &ChumbungBAC(West district). I would like to express my gratitude to all the officials of DESM&E involved in the preparation of the report. (S D Tshering) DG-cum-Secretary DESM&E i BUSINESS REGISTER 2016-17 INDEX Page no. Sl.No. Contents 1 Introduction 1-2 2 Economy of Sikkim 3-4 Existing System of Registration of Enterprises/ 3 5 Establishments 4 Business Register 6-11 a. Definition 6 b. What does BR contain? 6 c. Uses of Business Register 6 d. Preparation of BR 6-7 e. System Adopted 7 f. Goals of BR 7-11 5 Observations and Findings 12-16 6 STATISTICAL TABLES 17-25 7 Annexure-I 26-27 8 Annexure-II 28-29 ii BUSINESS REGISTER 2016-17 Introduction The preparation of Business Register (BR) offers us an opportunity to develop a list of entrepreneurial units which will give us real-time information on all aspects of an enterprise/establishment engaged in economic activity. The development of such system will not only strengthen the State statistical system but will also add value to the enterprise registration system of the State. In accordance with guidelines framed by CSO, MOSPI and taking into consideration the administrative system in the State, appropriate methodologies and strategies have been developed to stream line the existing system of issuing trade license in the State. The objective of revamping this system is to bring about uniformity and to collect and collate information in order to help develop a BR of all the registered enterprises/establishments with details of their location, name, type of activity, ownership, etc. on an annual basis. Sikkim is a small hilly State in the Eastern Himalayas with formidable physical features. It is bound by the autonomous region of Tibet in the North, Bhutan in the East, Darjeeling district of West Bengal in the south and Nepal forming the western border of the State. The State of Sikkim has a total area of only 7096 sq. km. and is stretched over 112 kms from North to South and 64 kms from East and West. Teesta and Rangit, which originates from Tsholamu Lake and Rathong Glacier respectively, are the two major rivers of the State. Sikkim has diverse range of flora and fauna. Owing to its altitudinal gradation, the State has a wide variety of plants, from tropical species to temperate, alpine and tundra ones. As per Census 2011, Sikkim has a population of 6.11 lakh, an increase of 13% from 5.41 lakhs in 2001 census. About 25.15 percent of the total population live in urban areas and 74.85 percent of the population live in rural areas. According to the 2011 Census, the number of total workers increased from 263,043 in 2001 to 308,138 in 2011-an increase of 17 per cent. 55 per cent of this increase was in the category of marginal workers. Main workers constitute 38 per cent of the total population and marginal workers constitute 13 per cent of the total population. 1 BUSINESS REGISTER 2016-17 Table 1: Distribution of population of Sikkim by type of workers Sl Item 2001 2011 No 1 Population 540851 610577 2 Main Workers 212904 230397 (a)Cultivators 101200 82707 (b)Agricultural Labourers 9081 11582 (c)Worker in Household Industry 3168 2888 (d)Other Workers 99455 133220 3 Marginal Workers 50139 77741 4 Non Workers 277808 302439 The number of cultivators in the State has decreased by more than 10 per cent between 2001 -2011. However, there has been more than 50 per cent increase in the agricultural labourers and over 44 per cent increase in „Other Workers‟. 2 BUSINESS REGISTER 2016-17 Economy of Sikkim The Gross State Domestic Product at current prices and at constant prices for the year 2015 – 2016 is Rs. 16,63,678 lakhs and Rs. 13,72,154 lakhs, respectively. At current and constant prices, the Per Capita Income (PCI) GSDP of the State for the year 2015 – 2016 is Rs. 2,59,950 and Rs. 2,14,399 respectively. The contribution of primary sector in GSDP at current prices in 2015-2016 is Rs. 1,60,801 lakhs which constitutes 10.02%. Similarly, the contribution of primary sector in GSDP at constant prices is 7.7% in 2015-2016. At current and constant prices, the GSDP on 2015-16 in the secondary sector is Rs. 8,93,877 lakhs and Rs. 7,76,355 lakhs respectively. Similarly, the tertiary sector contributes 34.28% of GSDP at current prices and 33.7% of GSDP at constant prices. The contribution of tertiary sector in GSDP at both current and constant prices has been increasing positively since 2011-2012. Table 2: Gross State Domestic Product and Per Capita Income at Current and Constant Prices AT CURRENT PRICES AT CONSTANT PRICES Per Capita Per Capita GSDP GSDP Year (GSDP) (GSDP) (Rs in (Rs in (in Rs) (in Rs) lakhs) lakhs) 2011-2012 1116510 181842 1116510 181842 2012-2013 1233842 198686 1142121 183916 2013-2014 1386190 221083 1211405 193207 2014-2015* 1520933 240274 1288249 203515 2015- 1663678 259950 1372154 214399 2016** Table 3: Contribution of Primary Sector in GSDP at Current and Constant Prices AT CURRENT PRICES AT CONSTANT PRICES GSDP Contribution GSDP Contribution Year (Rs in (%) (Rs in lakhs) (%) lakhs) 2011-2012 90937 8.35 90937 8.3 2012-2013 109173 9.12 94210 8.5 2013-2014 123658 9.29 97820 8.4 2014-2015* 138776 9.46 99210 8 2015- 160801 10.02 102282 7.7 2016** 3 BUSINESS REGISTER 2016-17 Table 4: Contribution of Secondary Sector in GSDP at Current and Constant Prices AT CURRENT PRICES AT CONSTANT PRICES GSDP Contribution GSDP Contribution Year (Rs in (Rs in (%) (%) lakhs) lakhs) 2011-2012 684341 62.83 684341 62.8 2012-2013 714223 59.68 666349 60.1 2013-2014 786582 59.07 697651 59.9 2014-2015* 845253 57.61 734761 59 2015-2016** 893877 55.7 776355 58.6 Table 5:Contribution of Tertiary Sector in GSDP at Current and Constant Prices AT CURRENT PRICES AT CONSTANT PRICES GSDP Contribution GSDP Contribution Year (Rs in (Rs in (%) (%) lakhs) lakhs) 2011-2012 313932 28.82 313932 28.8 2012-2013 373345 31.2 347624 31.4 2013-2014 421451 31.65 369787 31.7 2014-2015* 483103 32.93 410796 33 2015-2016** 550151 34.28 447204 33.7 The Secondary sector contributes the largest share to the State‟s economy with 55.70% followed by Tertiary and Primary sector with 34.28% and 10.02% respectively. From the above table, it is evident that the economy of the State has shifted from an agrarian sector to the one based on manufacturing and service sectors. The development into these two sectors can be attributed to high demand for more goods and services. Also, the priority of the government to generate adequate employment has led to establishment of large number of manufacturing units. In order to give a fillip to the economy, there has been a rapid growth of industry in Sikkim. 4 BUSINESS REGISTER 2016-17 Existing System of registration of enterprises/establishments In Sikkim, there are 58 Registering Authorities (RAs) registering enterprises/establishments under the following acts: a) Sikkim (Repeal & Miscellaneous provisions) Act 1985, for shops and commercial establishments b) Sikkim Excise Act,1956 c) Micro, Small and Medium Enterprises Development Act 2006 d) Sikkim Khadi & Village Industries Board Act, 1996 e) Sikkim Cooperative Societies Act, 1978 f) Sikkim Regulation of Societies, Associations & Other Voluntary Organizations Act, 2008 g) Companies Act, 1956 The Registering Authorities are located in all four districts of the State. East district has the highest number of RAs with 22 followed by South District, West District and North District with 15, 13 and 8 respectively. 5 BUSINESS REGISTER 2016-17 Business Register Business Register (BR) is a register of enterprises and establishments engaged in various economic activities of the State.