India to Create City-Level Databases for Labour Market and Enterprises
India to Create City-Level Labour Market and Enterprise Databases

New Delhi: Metropolitan cities in the country are soon going to have dedicated databases pertaining to their labour market conditions and the status of informal enterprises operating there, in a bid to promote evidence-based policymaking and planning as the country continues to experience rapid urbanisation.

The initiative by India's official statistical machinery looks to fill the data gaps in these emerging growth engines, as traditionally it has only produced estimates at the national and state or union territory levels.

"While certain sub-state estimates are generated, there is no systematic mechanism for regular dissemination of statistics at the city level, particularly with respect to labour market indicators and enterprise characteristics of the unincorporated sector," the statistics ministry said in a statement.

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The proposed reports will cover 47 million-plus cities identified as per the Population Census 2011. Maharashtra has the highest number of such cities at 10, followed by Uttar Pradesh (7), Gujarat and Madhya Pradesh (4 each).

This move is expected to significantly enhance the ability of policymakers to design targeted interventions for urban development, employment generation, and support for informal enterprises. By providing granular data at the city level, the government aims to better understand the dynamics of local economies and address the unique challenges faced by rapidly growing urban centres.

The databases will include detailed information on labour force participation, employment types, wages, and the operational characteristics of unincorporated enterprises, which form a substantial part of the urban economy. This will enable more accurate assessments of urban labour markets and the informal sector, which are often underrepresented in traditional national surveys.

Furthermore, the initiative aligns with the government's broader agenda of promoting data-driven governance and smart city development. It is expected to aid city administrators in resource allocation, infrastructure planning, and social welfare programme implementation.

The statistics ministry has indicated that the reports will be prepared in collaboration with state governments and local bodies, ensuring that the data collected is relevant and actionable. The first set of reports is anticipated to be released within the next two years.

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