Lok Sabha Question No. 1429 (UNSTARRED), answered on 2018-03-05
Subject: Unutilised Industrial Production Capacity
Ministry: COMMERCE AND INDUSTRY
Asked by: RAM CHARITRA

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

## LOK SABHA

UNSTARRED QUESTION NO. 1429. TO BE ANSWERED ON MONDAY, THE 5 TH  MARCH, 2018.

## UNUTILISED INDUSTRIAL PRODUCTION CAPACITY

## 1429.  SHRI RAM CHARITRA NISHAD:

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

## वाणिज् यवव द्योग म त्री

- (a) whether  currently,  the  country-wide  average  unutilised  industrial  production capacity is about 26 per cent;
- (b) if  so,  whether  the  Government  is  considering  to  ensure  full  use  of  the industry's unutilised capacity; if so, the details thereof; and
- (c) whether the Government proposes to increase domestic demand as well as boost  exports  to  ensure  the  entire  capacity  is  utilised  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): As  per  the  latest  round  of  Order  Books,  Inventories  and  Capacity Utilisation Survey (OBICUS), conducted by the Reserve Bank of India (RBI) for the quarter July-September 2017, the details of the indicative capacity utilised is given below in Table.
- (b) & (c): The  key  drivers  of  capacity  utilisation  are  domestic  demand  and exports. The Government is continuously taking steps to boost overall domestic demand and exports.  Continuing investments in creation of new infrastructure and strengthening existing infrastructure have been the  focus  of  the  government  policy  initiatives.  The  Government  has proposed  an  outlay  of  Rs.5.97  lakh  crore  for  infrastructure  in  the Budget  2018-19.    Increased  investment  in  rural  infrastructure,  in schemes  such  as  Prime  Minister  Gram  Sadak  Yojana  and  other flagship  schemes,  have  strong  multiplier  effects  to  generate  demand for many industries. In order to boost exports, the Foreign Trade Policy (FTP) 2015-20 provides a framework for increasing exports of goods in line with the 'Make in India' programme. As a follow up, the Mid-Term Review of the Foreign Trade Policy (FTP) 2015-20 has further widened the  scope  of    Merchandise  Exports  from  India  Scheme  (MEIS)  and Service Exports from India Scheme (SEIS) to boost exports.

| Estimates of Capacity Utilisation (manufacturing sector)   | Estimates of Capacity Utilisation (manufacturing sector)   | Estimates of Capacity Utilisation (manufacturing sector)   |
|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|
| Quarter                                                    | Number of reporting companies                              | Capacity Utilisation (in per cent)                         |
| Q1:2016-17                                                 | 903                                                        | 71.7                                                       |
| Q2:2016-17                                                 | 902                                                        | 72.0                                                       |
| Q3:2016-17                                                 | 710                                                        | 71.0                                                       |
| Q4:2016-17                                                 | 724                                                        | 74.6                                                       |
| Q1:2017-18                                                 | 805                                                        | 71.2                                                       |
| Q2:2017-18                                                 | 756                                                        | 71.8                                                       |
| Source: Reserve Bank of India                              | Source: Reserve Bank of India                              | Source: Reserve Bank of India                              |

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