New Delhi, Aug. 11 -- Micro, small and medium enterprises (MSMEs) are the backbone of our economic structure, driving value addition, employment and exports. There are more than 70 million such enterprises, accounting for nearly 30% of India's GDP and over 40% of exports. Yet, policymakers operate with an incomplete and somewhat distorted statistical picture.

We have two major sources of data on unincorporated MSMEs-those not registered as a company or a limited liability partnership. The first is the Annual Survey of Unincorporated Sector Enterprises (ASUSE) conducted by the National Sample Survey Office (NSSO). It covers non-agricultural, non-construction and unincorporated establishments. Before it became an annual exercise in 2021-22...