Lok Sabha Question No. 5950 (UNSTARRED), answered on 2017-04-10
Subject: Growth of Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: RAHUL RAMESH SHEWALE, DHARMENDRA YADAV, VINAYAK BHAURAO RAUT, ANANDRAO  ADSUL, Shrirang Appa Barne, SHRIKANT EKNATH SHINDE

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

## LOK SABHA

UNSTARRED QUESTION NO.5950.

TO BE ANSWERED ON MONDAY, THE  10 TH  APRIL, 2017.

## GROWTH OF MANUFACTURING SECTOR

5950.  SHRI RAHUL SHEWALE:

SHRI DHARMENDRA YADAV:

SHRI VINAYAK BHAURAO RAUT:

SHRI ANANDRAO ADSUL:

SHRI SHRIRANG APPA BARNE:

DR. SHRIKANT EKNATH SHINDE:

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

## वाणिज् यवव द्यग ं ्री

- (a) whether the manufacturing sector has registered an average growth rate of 1.6% only during the last five years till 2015-2016, if so, the reasons therefor;
- (b) the  steps  taken  to  review  the  growth  of  capital  goods  sector  and  industrial development of backward and remote areas;
- (c) the reasons for negative foreign portfolio investment turning negative and its impact on Indian industries;
- (d) whether the Government is taking steps to deal with the non-tariff impediments being faced by Indian exporters, if so, the details thereof; and
- (e) the corrective steps taken by the Government in this regard with a particular focus on small and medium enterprises?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

As per the Index of Industrial Production (base year 2004-05), growth

- (a) & (b) in manufacturing sector (year-wise) is given below:

| Year                     |   2011-2012 |   2012-2013 |   2013-2014 |   2014-2015 |   2015-2016 |
|--------------------------|-------------|-------------|-------------|-------------|-------------|
| Manufacturing Sector (%) |           3 |         1.3 |        -0.8 |         2.3 |           2 |

The Government is regularly  monitoring  the  growth  of  manufacturing sector and various initiatives have been taken to promote manufacturing sector. These inter-alia, include the following:

- i. Make in India initiative aims to make India a hub for manufacturing, design and innovation. It focuses on infrastructure, simplified processes, job creation, skill development and fostering innovation in select thrust sectors.
- ii. Startup  India  initiative  aims  to  build  a  strong  eco-system  for nurturing innovation and Startups in the country to drive sustainable economic growth and generate large scale employment opportunities.
- iii. Significant changes have been made in the FDI policy regime to ensure  that  India  remains  attractive  and  an  investor  friendly destination. Government has put in place a comprehensive FDI policy  regime,  bringing  more  activities  under  automatic  route, increasing sectoral caps, and easing conditionalities.
- iv. To  ensure  availability  of  state  of  art  physical  infrastructure  for the  industry,  the  Government  is  building  industrial  corridors along  the  dedicated  freight  corridors.  In  addition,  focus  is  on strengthening existing infrastructure in roads, railways, ports and waterways across the country.
- v. A number of measures have been undertaken to ease business environment. Industrial licensing has been simplified and liberalized  with  a  large  number  of  components  of  Defence Products' list excluded from its purview. Various Central Government and State Government services are being integrated  on  a  single  window  eBiz  portal.  The  process  of obtaining  environment  and  forest  clearances  has  been  made online.  24x7  operations  have  been  introduced  at  17  Sea  ports and  18  airports.  A  single  window  for  import  clearances  called Single  Window  Interface  for  Facilitating  Trade  (SWIFT)  has been  set  up.  An  Investor  Facilitation  Cell  has  been  created under the National Investment Promotion and Facilitation Agency  'Invest  India'  to  guide,  assist  and  handhold  investors during the entire life-cycle of business. The State Governments have  also  been  brought  on  board  to  expand  the  coverage  of these efforts.
- vi. The Ministry of MSME implements several schemes to promote output and employment among MSMEs. A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship is implemented to provide support to MSMEs. Capital subsidy is provided  under  the  Credit  Linked  Capital  Subsidy  Scheme. Scope  and  coverage  of  the  Credit  Guarantee  Trust  Fund  for

MSEs Scheme has been expanded to improve access to credit. Support to self employment  is provided under the Prime Minister's  Employment  Generation  Programme.  The  National Manufacturing  Competitiveness  Programme  aims  to  promote efficient manufacturing, technology upgradation and quality certification for MSMEs.

- vii. Measures  are  ongoing  to  channelize  the  efforts  and  provide impetus  to  the  skill  development  ecosystem  with  a  view  to improve employability of workers/unemployed in India. The Skill India  initiative  and  its  various  components  such  as  'Pradhan Mantri Kaushal Vikas Yojana (PMKVY)' and 'Skill Loan Scheme' synergize the existing efforts in Make in India by aligning skills to the industrial requirements. They also aim to tap India's comparative  advantage  in  labour  intensive  sectors  such  as textiles and leather.
- viii. Sectoral schemes like Integrated textile parks, for handloom, silk and jute sectors in the Ministry of Textiles; leather clusters, skill upgradation for people in leather and footwear sector; scheme for mega food parks etc aim to increase employment generation.
- ix. Department of Industrial Policy & Promotion implements Special Package  Scheme  for  industrial  development  of  Jammu  & Kashmir,  Himachal  Pradesh  and  Uttarakhand  and  North  East Industrial  and  Investment  Promotion  Policy  (NEIIPP),  2007  to further boost the industrialisation in the states of North Eastern Region and Transport Subsidy Scheme for industrially backward regions.
4. (c): The  total  Foreign  Portfolio  Investment  (FPI)/    Foreign  Institutional Investment (FII) during 2016-17 is Rs. 48,411/- crores .
5. (d) & (e): Government has been proactively involved in taking steps to deal with the  non-tariff  impediments  faced  by  the  Indian  exporters  which  is monitoring the measures/actions being taken by the importing countries including the WTO member countries. In case Government of India considers such measure as inconsistent with the WTO agreement and  impacting  our  trade interest, it takes up  the  matter in the appropriate forum including  the bilateral and  multilateral  forum  (WTO Committee).   These non-tariff impediments may range from a number of measures including, technical regulations imposed by other countries, sanitary and phyto-sanitary measures, conditions of rules of origin, subsidies etc.

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