Lok Sabha Question No. 1953 (UNSTARRED), answered on 2016-11-28
Subject: Growth of Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: M. VEERAPPA MOILY, CH. MALLA REDDY, HARISH CHANDRA MEENA, RAMSINH PATALYABHAI RATHWA

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

## LOK SABHA

UNSTARRED QUESTION NO. 1953. TO BE ANSWERED ON MONDAY, THE 28 TH   NOVEMBER,  2016.

## GROWTH OF MANUFACTURING SECTOR

## 1953.  DR. M. VEERAPPA MOILY:

SHRI CH. MALLA REDDY:

SHRI HARISH MEENA:

SHRI RAMSINH RATHWA:

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

## वाणिज् यवव द्यग ं ्री

- (a) whether the growth of the manufacturing sector is slow in the country, if so, the details thereof and the reasons therefor;
- (b) whether  All  India  Manufacturers'  Organisation  (AIMO)  has  urged  the  Union Government  to  meet  50  per  cent  of  its  growth  plan  through  the  domestic industries,  if  so,  the  details  thereof  and  the  reaction  of  the  Government thereto;
- (c) the details of export/import and the number of employment generated in the manufacturing sector during each of the last three years and the current year; and
- (d) the  steps  taken  by  the  Government  to  promote  the  domestic  manufacturing sector and make them globally competent?

## 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)

- (a): As  per  the  National  Accounts  Statistics  data  compiled  by  Central  Statistics Office,  the  Gross  Value  Added  (GVA)  for  manufacturing  sector  grew  at  the rate of 9.3 percent in year 2015-16 over the year 2014-15. For the first quarter April-June (Q1) 2016-17, Quarterly GVA from 'manufacturing' sector grew by 9.1 percent as compared to growth of 7.3 percent in Q1 2015-16.
- (b): There  are  press  reports  that  All  India  Manufacturer's  Organisation(AIMO), through an open letter, has urged Government that at least 50% of needs of each  Ministry  in  their  growth  plan  for  next  5  years  must  be  given  to  local

manufacturing industries. Government is actively pursuing measures to boost domestic manufacturing through initiatives like 'Make in India', 'Startup India', 'Ease  of  Doing  Business'  and  liberalization  of  Foreign  Direct  Investment policy.

- (c): The  export/  import  data  is  maintained  commodity  wise  and  consolidated figures are not maintained sector wise. The total number of persons engaged in the registered manufacturing sector as per the Annual Survey of Industries pertaining to the latest available three years 2011-12, 2012-13 and 2013-14 stands  at  13.43  million  persons,  12.95  million  persons  and  13.54  million persons respectively.
- (d): Government has been taking steps to boost industrial production and growth. These inter-alia,  include  'Make  in  India'  initiative  under  which  thrust  sectors have  been  identified  to  provide  a  push  to  manufacturing  in  India,  'Startup India' initiative and 'Ease of Doing Business'. Steps taken to improve ease of doing business include simplification and rationalisation of existing rules and introduction  of  information  technology,  setting  up  of  an  Investor  Facilitation Cell,  launch  of  e-biz  Portal  and  liberalising  policy  for  industrial  license  for defence  industries.  Foreign  Direct  Investment  (FDI)  policy  and  procedures have been simplified and liberalised progressively. Government has taken up a  programme of building pentagon of industrial corridors across the country with  an  objective  to  provide  developed  land  and  quality  infrastructure  for development of industrial townships.

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