Lok Sabha Question No. 3832 (UNSTARRED), answered on 2018-03-19
Subject: Industrial Growth
Ministry: COMMERCE AND INDUSTRY
Asked by: N.K. PREMACHANDRAN, RAMESH CHANDER KAUSHIK

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 3832. TO BE ANSWERED ON MONDAY, THE 19 TH  MARCH, 2018.

## INDUSTRIAL GROWTH

## 3832.  SHRI N.K. PREMACHANDRAN: SHRI RAMESH CHANDER KAUSHIK:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्योग म त्री

- (a) the details of the industrial growth including consumer goods in India during each of the last three years;
- (b) whether  the  Government  analyzed  the  factors  which  adversely  affect  the industrial growth in India and if so, the details thererof;
- (c) whether the international agreements signed by India during the said period are helpful to industrial growth in the country and if so, the details thereof;
- (d) whether  the  relaxation,  concession  and  reduction  given  to  the  corporates during  the  said  period  are  helpful  to  industrial  growth  and  if  so,  the  details thereof; and
- (e) whether the foreign investment in the industrial sector increased due to the change  in  policy  of  the  Government  during  the  said  period  and  if  so,  the details thereof?

## ANSWER

वाणिज् यवव द्योग म त्रालयमेंराज् यम त्री(श्री सी.आर.चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a): The details of the industrial growth (in per cent) as per the use-based classification  of      Index  of  Industrial  Production  (IIP)  at  Base  Year 2011-12 during each of the last three years is given in the table below:
- (b): Overall  performance  of  industrial  sector  is  an  interplay  of  several factors  such  as  domestic  demand,  demand  for  exports,  level  of investment etc. However, the Government from time to time evaluates the factors impacting the industrial  performance of the country. Monitoring of industrial growth, production and  analysis of the factors impacting performance of the industries is an ongoing process.
- (c): India  has  not  entered  into  any  new  Free  Trade  Agreement  (FTA)  or Preferential Trade Agreement (PTA) during last three years. However, India expanded the scope of India-ASEAN Trade in Goods Agreement in November, 2014 to cover both Services and Investment, which came into effect on 1 st July, 2015. Impact evaluation of FTAs is a continuous process which starts even before FTA negotiations are entered into.
- (d): As  industrial  performance  depends  upon  a  combination  of  domestic and  international  factors,  it  is  not  feasible  to  separately  assess  the impact of concessions and relaxations given to the corporates on the overall industrial performance.
- (e): Government aims at creating a conducive environment by streamlining the  existing  regulations  and  processes  and  eliminating  unnecessary requirements  and  procedures.  'Make  in  India'  programme  has  been launched which aims at making India a global hub for manufacturing, research  &  innovation  and  integral  part  of  the  global  supply  chain. Several steps to boost domestic manufacturing are being taken as part of  schemes such as Startup India, Ease of Doing Business, Modified Industrial Infrastructure Upgradation Scheme, Business Reform Action Plan,  Intellectual  Property  Rights  (IPR)  Policy  etc.  Further, Foreign Direct  Investment  (FDI)  policy  and  procedures  have  been  simplified and liberalized  progressively.  The  FDI  Equity  inflow for  the  last  three years is given below:

| Year    |   Primary Goods |   Capital Goods |   Intermediate Goods |   Infrastructure/ construction Goods |   Consumer Durable |   Consumer Non- durable |   Overall |
|---------|-----------------|-----------------|----------------------|--------------------------------------|--------------------|-------------------------|-----------|
| 2014-15 |             3.8 |            -1.1 |                  6.1 |                                  5   |                4   |                     3.8 |       4   |
| 2015-16 |             5   |             3   |                  1.5 |                                  2.8 |                3.4 |                     2.6 |       3.3 |
| 2016-17 |             4.9 |             3.2 |                  3.3 |                                  3.9 |                2.9 |                     7.9 |       4.6 |

| Year                          | FDI Equity Inflows ( in US$ Million)   |
|-------------------------------|----------------------------------------|
| 2014-15                       | 30,930.50                              |
| 2015-16                       | 40,000.98                              |
| 2016-17                       | 43,478.27                              |
| Source- Reserve Bank of India |                                        |

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