Lok Sabha Question No. 2740 (UNSTARRED), answered on 2018-03-12
Subject: Promotion of Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: JAYADEV GALLA, MANSHANKAR NINAMA, PRATIMA MONDAL, S.P. MUDDAHANUMEGOWDA

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

## LOK SABHA

UNSTARRED QUESTION NO. 2740. TO BE ANSWERED ON MONDAY, THE 12 TH  MARCH, 2018.

## PROMOTION OF MANUFACTURING SECTOR

## 2740.  SHRI JAYADEV GALLA:

SHRI MANSHANKAR NINAMA:

SHRIMATI PRATIMA MONDAL:

SHRI S.P. MUDDAHANUME GOWDA:

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

## वाणिज् यवव द्योग म त्री

- (a) whether  the  growth  rate  of  the  manufacturing  sector  has  increased  after implementation of the 'Make in India' initiative in the country, if so, the details thereof and if not, the reasons therefor;
- (b) whether  the  Union  Government  is  working  with  different  States  to  remove dependencies on States to achieve the set targets under the 'Make in India' initiative, if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government  has  launched certain schemes  for providing incentives to the manufacturing companies providing employments to persons belonging to economically weaker sections/ backward classes in the country and if so, the details thereof; and
- (d) the other steps taken/proposed to be taken by the Government to promote the manufacturing sector in the country?

## 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 year wise growth rate of manufacturing sector as reflected by Index of Industrial production with base 2011-12 after implementation of the 'Make in India' initiative in the country is given in the Table below:

| Year                      | Growth Rate   |
|---------------------------|---------------|
| 2015-16                   | 2.8           |
| 2016-17                   | 4.4           |
| April to December 2017-18 | 3.8*          |
| *Provisional              |               |

The slower growth during April-December 2017 as compared to the previous year has been primarily due to large scale destocking by manufacturing units, during the first quarter of the current financial year (April-June 2017), in the run up to the introduction of the Goods and Services Tax (GST) w.e.f 1st July 2017. Slowdown in the growth rate of exports of sectors such as Ready Made Garments  (RMG)  of  all  textiles    and  Gems  and  Jewellery  has  also  partly affected the performance of manufacturing sector during the current financial year. However, as per the latest available Index of Industrial Production the manufacturing sector production has seen strong rebound in recent months registering an increase of 10.7 percent in November 2017 and 8.4 percent in December 2017.

- (b): Keeping in view the significance of the regulatory environment on business, a detailed  plan  of  regulatory  reforms  has  been  implemented  not  only  in  the Central Government Ministries but also in States through the active engagements with State Governments. In this context, DIPP has been closely working  with  the  State/UT  Governments  to  help  them  identify  constraints  in doing business and improving overall business environment in their respective State/UT. To help the low scoring States, leader States have been requested to  help  and  guide  them  in  the  implementation  of  the  reforms and  share the best practices.
- (c): Government  has  approved a special package of Rs. 2600 crore for employment generation in leather and footwear sector to be implemented till 31st March, 2020. In the package, leather, footwear and accessories sector has been provided with special incentives for employment  generation including  introduction  of  fixed  term  employment  considering  the  seasonal nature of the industry.

Government has also approved a special package of approx. Rs. 6000 crore for  apparel  sector.  In  the  package,  garment  sector  has  been  provided  with special incentives for employment generation and fixed term employment has been  introduced.  Under  the  fixed  term  employment,  a  workman  will  be considered  at  par  with  permanent  workman  in  terms  of  working  hours, allowances,  wages  and  other  statutory  benefits.  The  Government  will  also contribute  12%  of  the  wages  of  the  new  employees  in  the  EPF  for  all  the sectors for next three years. Also, the facility of fixed term employment will be extended to all sectors.

- (d): Government  has  under  the  National  Manufacturing  Policy  granted  'Final Approval'  to  three  National  Investment  and  Manufacturing  Zones  (NIMZs), which are (i) Prakasam in Andhra Pradesh (ii) Sangareddy (erstwhile Medak) in Telangana and (iii) Kalinganagar, Jajpur District in Odisha. In addition, 13 NIMZs have also been granted 'in-principle' approval.

Further, 122 Industrial Licences for Defence sector manufacturing have been issued since the launch of 'Make in India' initiative.

*******