The first known exercise in collecting data on artisanship and processing of primary products was undertaken during the time of Rana Prime Minister Juddha Shumshere Rana. But, it was not a nationwide exercise. It was an effort to collect the information on artisanship and mapping the resources available in the vicinity of Kathmandu. Efforts to collect data on industrial activities on a regular basis started only after the formal establishment of the Central Bureau of Statistics as a national agency for collection, management and production of statistics under the Statistical Act of 1958. The first Census of Manufacturing Establishments (CME) was carried out in 1964/65. (2022 B.S.) The second census was carried out 8 years later in 1972/73 (2030 B.S.). Thereafter, the CMEs have been carried out in 5 years intervals. The years of implementation of the CMEs are given below:
The CME 2006-2007 is the ninth Census of Manufacturing Establishments of Nepal. As seen above, CME has been conducted in the Nepali year ending at 4 and 9. The CME covers all units that engaged 10 or more persons. These units may or may not use power or auto machines in their industrial operations. This coverage is adopted in CMEs since 1991/92. Before 1991/92, i.e., up to the fifth CME, it covers all manufacturing establishments engaging 10 or more persons or using auto machines irrespective of persons engaged.
Main Changes in the census procedures over the years
It has been more than 4 decades since the process of census of manufacturing establishments were initiated in the country. There have been considerable changes in the census process and the census coverage. Some of the important changes are described below:
Definition / coverage:
From the very beginning establishments of certain size were covered in the census. The establishments engaging 10 or more persons or using mechanical power were covered till 5th Census. This meant use of automotive machines, irrespective of number of persons engaged qualified the establishment to be brought under the census. From the 6th census onwards, only the establishments that engaged 10 or more persons were brought within the ambit of the census. This led to the dropping of many units especially rice, dal and oil mills from the census coverage. This was done because it became almost impossible to identify all establishments that used machines. The use of machines was becoming popular even in very small units. Many new household operated units were found using mechanical power.
The data processing of the first and second censuses was done entirely by hand. The manual processing meant a lot of time taken for bringing out the result and also difficulties associated with preparing the tables. From the third census, CBS started to use modern computing machines. At the initial stages, involvement of programmers and processing experts were a must. It would take years to get the data processed and made ready for publication. With the growth of use of micro computers, the processing time has become very short. Furthermore, the officials of the Bureau can do the processing using the standard statistical programs.
Classification of industries:
In the first four censuses, there was no standard industrial classification. The industries were classified by the CBS without using any internationally acceptable norm or criterion. The CBS first started to use the Industrial classification based on the Nepal Standard Industrial Classification (NSIC), which in turn is based on International Standard Industrial classification (ISIC) in the CME of 1987/88. So the CME was made internationally comparable since the 5th CME. The output tables and indicators of earlier CMEs could not be meaningfully compared at international levels. The Central Product Classification (CPC) developed by the UN was introduced in the census of 2001/02. So now census inputs and output have become internationally comparable.
The Census of Manufacturing Establishments (CME) 2006-2007 is the ninth in the series of CMEs carried out in Nepal since 1964-65. The primary objective of CME is to provide updated data on the composition, growth and volume of the manufacturing sector. The census is conducted in "Establishment Approach". The reference period is considered as the fiscal year 2006-207. There were 3446 establishments found operated throughout the country engaging 10 or more persons irrespective of usage of power machines. Such establishments are called modern manufacturing establishments. Gross value added (GVA) contribution of modern manufacturing sector is Rs. 4100 crore at current prices.
Following the international practices, the establishments surveyed are classified according to the Nepal Standard Industrial Classification (NSIC) at 4 digit level and designed results accordingly. There are altogether 23 types of tables presented in the CME final report at national level including employment and earning, fuel, raw material, value of shipment, industrial services and non-industrial services, indirect tax, stocks, capacity utilization, fixed assets. The report contains tables on investment for environment protection and problem faced by manufacturing establishments also. The problems are presented according to the priority given. Lack of raw material (25%) is the major problem of the manufacturing sector followed by lack of capital (15%), lack of market (14%) and poor industrial policy (13%) respectively.
Ten (10) indicators including number of establishments, number of persons engaged, number of paid employees, wages and salaries, value of stocks at the end of the year, gross addition of fixed assets during the year, gross fixed assets at the end of the year, value of output, value of input and value added are defined as principal indicators. The principal indicator tables of Nepal and Urban/Rural are prepared by legal status, ownership, number of persons engaged, and size of fixed assets and by NSIC at 4 digit levels in the National Report. But the principal indicator tables of district by legal status, ownership, number of persons engaged, and size of fixed assets and by NSIC at 4 digit level are kept in the District Level report. Cost of raw materials purchased and the value of shipments are presented according to the Central Product Classification code at 4 digit levels at national level only.
The objective of the CME was to collect, process and disseminate statistics of operational manufacturing establishments engaging ten or more persons in the reference period. The specific objectives of the CME were to:
a) Collect statistics on the structure of the existing manufacturing establishments;
b) Produce information on output and input of manufacturing establishments by Central Product Classification (CPC);
c) Produce statistics at national and district levels;
d) Collect and produce statistics on employment in the manufacturing establishments;
e) Collect information on establishment's attempts to manage environment.
Kind of Data
Census/enumeration data [cen]
Unit of Analysis
Manufacturing establishments engaging 10 or more persons
Version 01: Edited data, for public use
The scope of the CME 2006-07 includes all manufacturing establishments of major division 'D' of the Nepal Standard Industrial Classification 2000. In general, manufacturing establishments are classified on the basis of the principal type of products produced. There are following 23 Divisions, 53 Groups and 117 Classes of Major Division “D”, that is, "Manufacturing and Recycling" in the NSIC.
15 Food products and beverage
16 Tobacco products
17 Textiles, carpet and rugs, jute and jute goods
18 Wearing apparel; dressing and dyeing of fur
19 Tanning and dressing of leather
20 articles of straw and plaiting materials
21 Paper and paper products
22 Publishing, printing and reproduction of recorded media
23 Coke, refined petroleum products
24 Chemicals and chemical products
25 Rubber and plastic products
26 Other non-metallic mineral products
27 Basic metals
28 Fabricated metal products, except machinery and equipment
29 Machinery and equipment N.E.C.
30 Manufacturing of office accounting and computin machinery
31 Electrical machinery and apparatus N.E.C.
32 Radio, television and communication equipment and apparatus
33 Medical, precision and optical instruments, watches and clocks
34 Motor vehicles, trailers and semi-trailers
35 Other transport equipment
36 Furniture; manufacturing N.E.C.
Major Division D
With respect to subjects concerned, CME provides the following information as included in the questionnaire:
- total number of manufacturing establishments engaging 10 or more persons;
- legal status, ownership and major manufacturing activity of the establishments;
- employment (no.of employees by sex and citizenship and their emoluments);
- the quantity and value of production, purchase and sale of fuel;
- the quantity and value of raw material purchased by CPC and country;
- the quantity and value of production and sale of product by CPC and country;
- the opening and closing stock amount of fuel, raw materials, finished goods, semi-finished goods;
- the income from and expenditure of industrial services;
- the income from and expenditure of non-ndustrial services;
- the amount of indirect taxes paid, e.g. VAT, excise duty, import duty, export duty, etc.;
- capital formation and fixed assets;
- capacity utilizations;
- pollution control efforts done by the establishments; and
- major problems faced by the establishments during the reference period.
TRADE, INDUSTRY AND MARKETS 
All establishments that are classified in NSIC Division D, Manufacturing, and employ at least 10 persons are included.
Producers and sponsors
Central Bureau of Statistics
National Planning Commision
Ministry of Industry
Government of Nepal
Publication of registration profile
Trade Promotion Centre
Government of Nepal
Publication of foreign trade statistics
Government of Nepal
Federation of Nepal Chamber of Commerce
Private Sector of Nepal
Dates of Data Collection
Data Collection Mode
Interviews were conducted by trained enumerators of 33 Branch Statistics Offices (BSOs) as 33 teams. The supervision was done jointly by Statistics Officers of BSOs and officials of the Establishment Census and Survey Section (ECSS) of CBS. The role of the BSO officer was to coordinate field data collection activities in their respective districts. The role of the chief of the ECSS of CBS was to manage and coordinate BSO's work, including supplies and equipment, finances.
Data Collection Notes
A pilot survey took place from January 15 to February15, 2006 in three districts: Morang, Surkhet and Rasuwa.
Branch Statistics Offices
Central Bureau of Statistics
The questionnaire for the CME is a structured questionnaire based on the Recommendation of industrial statisics by UNIDO. It was designed to fulfill the National Accounts requirements. It contains 17 sections as stated below:
2. Legal Status
4. Major Activity
6. Production, Purchase and Sale of Fuels
7. Income and Expenditure received or paid for industrial services
8. Cost of Raw Materials Purchased
9. Production and Product Sold
11. Expenses for Non-industrial Services
12. Indirect Taxes
13. Income received from Non-industrial Services
14. Fixed Assets
15. Production Capacity Utilization
A control form was introduced to find out the profit or loss and value added of each establishment. This form was filled by the supervisor of the BSO immediately after completing the interview of the establishment. If any inconsistencies were found during this phase, forms were sent back to the respective establishment for verification.
Coding was done in ECSS of CBS. NSIC and CPC coding schemes were used. Altogether, 6 statistical assistants were involved in the coding and checking of the price of each fuel, raw material and product under the direct supervision of a statistics officer in two groups.
During data entry in CSPro application, necessary checks and controls was administered for each section. Data were processed by NSIC and establishments separately. Several copies of simplified correspondence tables of NSIC and CPC 1.0 were prepared and used by every data editor, supervisor of the editors and data entry operators. Seven (7) computers were used for data entry which was done at CBS. Stata 7.0 was used to compile and analyze the data.
CME 2006-07 data appraisal may be categorized by 3 stages: Pilot survey, during data collection, during entry and processing. A pilot survey was conducted in 2005-06 in Rasuwa, Surkhet and jhapa district covering one district from each ecological belt. A technical committee headed by the Director General of CBS was formed to supervise, suggest, control and review the overall process of the census from questionnaire design to data dissemination.
A control form was used to verify establishment lebel input-output ratio as well as profit or loss status of the establishment at data collection stage. The data collection work was done only by the experienced permanent staff of CBS and its field offices. They were trained by the census officials of CBS worked in the head office. Statistical officers of branch offices were considered as supervisor of the census.
During Data entry, many range checks were introduced to minimize range errors. Some cross checks were used to control errors relating to the universe and pre-question of the entry variable during data entry. One big batch edit file with many edit commands were run and verify the observed missing or overvalued or undervalued data mostly by contacting the respondent of the establishment by telephone.
To establish consistency between the CPC of data recorded in section 9 of the questionnaire and NSIC of section 4, grouping of raw materials and products was made by CPC to make one to one correspondence with NSIC.
After entering and editing data in Cs-pro data entry application, frequencies and percentage distribution of the principal indicators like total number of establishment, total number of persons engaged, total number of employees, value of input, value of output, value added by NSIC, ecological belts, development regions, districts were tabulated and compared with that of previous census. Further,average output, value added, number of persons engaged, number of employees and fixed asset per establishment a was calculated to discuss final report of the census in the technical committee. The final results were published after the approval the committee.
Central Bureau of Statistics, Nepal
Publication, Distribution and Library Section
Central Bureau of Statistics, Nepal
Confidentiality of the respondents is guaranteed by article 8 of Statistics Act 1958.
Restriction on publication of information and details
Any information or details relating to any person, family, firm or company, which have been supplied, obtained or prepared pursuant to Section 3 or Section 4 or Section 5 or Section 6 or Section 7 or any part of such information or details, shall not be disclosed or published directly except to the Director General or to any other officer of the Bureau without the written permission of the person or of his or her authorized representative supplying such information or details.
For the purpose of institution of any suit under this Act, nothing mentioned in Sub-section (1) shall be deemed to bar the production of such information before any court.
The dataset has been anonymized and is available as a Public Use Dataset. It is accessible to all for statistical and research purposes only, under the following terms and conditions:
1. The data and other materials will not be redistributed or sold to other individuals, institutions, or organizations without the written agreement of the Central Bureau of Statistics.
2. The data will be used for statistical and scientific research purposes only. They will be used solely for reporting of aggregated information, and not for investigation of specific individuals or organizations.
3. No attempt will be made to re-identify respondents, and no use will be made of the identity of any person or establishment discovered inadvertently. Any such discovery would immediately be reported to the CBS.
4. No attempt will be made to produce links among datasets provided by the CBS or among data from the CBS and other datasets that could identify individuals or organizations.
5. Any books, articles, conference papers, theses, dissertations, reports, or other publications that employ data obtained from the CBS will cite the source of data in accordance with the Citation Requirement provided with each dataset.
6. An electronic copy of all reports and publications based on the requested data will be sent to the CBS.
7. If the number of establishment is less than 3 in any geographical area or NSIC, no statistics will be published for public use except number of establishment.
Use of the dataset must be acknowledged using a citation which would include:
- the Identification of the Primary Investigator
- the title of the survey (including country, acronym and year of implementation)
- the survey reference number
- the source and date of download
Central Bureau of Statistics (CBS), Nepal. Census of Manufacturing Establishments 2006/07. Ref. NPL_2006_CME_v01_M. Dataset downloaded from http://cbs.gov.np/nada/index.php/catalog on [date].
Disclaimer and copyrights
The Central Bureau of Statistics, Nepal bears no responsibility for use of the data or for interpretations or inferences based upon any type of use of the data.
DDI Document ID
Lok Bahadur Khatri
Central Bureau of Statistics
Editing for IHSN Survey Catalog
International Household Survey Network
Editing for IHSN Survey Catalog
Date of Metadata Production
DDI Document version
Version 1.0 - Central Bureau of Statistics - Original documentation of the study.
Version 2.0 0 - Edited version by ADP based on Version 1.0 of CBS downloaded from http://cbs.gov.np/nada/index.php/catalog on 19 April 2013.