An alternative approach for estimating valued added in unorganised banking and insurance industry

The contribution of unorganized sector in the estimate of Gross Value Added for banking and insurance industry is around 10 percent in the year 2010–11. Present National Accounts Statistics (NAS) estimates the GVA in unorganized sector of Banking and Insurance Industry by summing over the two factors, namely, (i) one-third of the estimated GVA of government and private financial companies and (ii) the commissions received by the insurance agents. This norm is being followed from 1980–81 base year series of NAS. Considering that unorganised financial sector is now included in the Enterprise Surveys of National Sample Survey Office (NSSO), an attempt has been made in this paper to estimate the GVA in unorganized banking and insurance sector through the Labour Input Method (LIM) by utilizing the productivity data in terms of GVA per worker (GVAPW) estimated from ES and labour input estimated from Employment Unemployment Survey.