Lok Sabha Question No. 1421 (UNSTARRED), answered on 2018-03-05
Subject: Industrial Production
Ministry: COMMERCE AND INDUSTRY
Asked by: OM BIRLA, CHANDRA PRAKASH JOSHI, RAMDAS CHANDRABHANJI TADAS

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

## LOK SABHA

UNSTARRED QUESTION NO. 1421. TO BE ANSWERED ON MONDAY, THE 5 TH  MARCH, 2018.

## INDUSTRIAL PRODUCTION

## 1421.  SHRI OM BIRLA:

SHRI CHANDRA PRAKASH JOSHI: SHRI RAMDAS C. TADAS:

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

## वाणिज् यवव द्योग म त्री

- (a) whether the  Government  acknowledges  that  India  has  been  placed  at  30th rank in the readiness for the future of production report and if so, the details thereof;
- (b) the details of the current manufacturing sector contribution to the India's GDP along with the rate of growth of the same during the last three years;
- (c) the details of the positive impact associated with the ranking which the India is going to have in this sector in the upcoming years;
- (d) whether the Government has also conducted any survey so as to determine what impact does the newly introduced reforms such as GST and 'Make in India' initiative had on the commerce and industry of the country and if so, the details thereof and the reasons therefor; and
- (e) the  steps  taken/proposed  to  be  taken  by  the  Government  to  increase  the existing industrial production 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): As  per  the  'Readiness  for  the  Future  of  Production  Report  2018' released by the World Economic Forum, India has been ranked in 30 th position out of the 100 countries and economies in terms of structure of production.
- (b): As per the latest release of 1 st revised estimates of National Income for the year 2016-17  by the Central Statistics Office (CSO), the details of the manufacturing sector's contribution to the India's GDP along with

the rate of growth  during the last three years are given in the Table below :

| Share and growth rate of manufacturing sector in Gross Value Added (GVA) (in per cent) (base year 2011-12)   | Share and growth rate of manufacturing sector in Gross Value Added (GVA) (in per cent) (base year 2011-12)   | Share and growth rate of manufacturing sector in Gross Value Added (GVA) (in per cent) (base year 2011-12)   | Share and growth rate of manufacturing sector in Gross Value Added (GVA) (in per cent) (base year 2011-12)   | Share and growth rate of manufacturing sector in Gross Value Added (GVA) (in per cent) (base year 2011-12)   |
|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| Year                                                                                                         | 2014-15*                                                                                                     | 2015-16#                                                                                                     | 2016-17                                                                                                      | @                                                                                                            |
| Share (at current prices)                                                                                    | 16.3                                                                                                         | 16.8                                                                                                         | 16.8                                                                                                         |                                                                                                              |
| Growth rate (at constant prices)                                                                             | 7.9                                                                                                          | 12.8                                                                                                         | 7.9                                                                                                          |                                                                                                              |

Source: Central Statistics Office.

- (c): The report ranks India in the top five in terms of demand environment and  also  acknowledges  that  the  Government  has  made  significant push  to  improve  key  enablers  and  move  towards  a  more  connected economy.
- (d) & (e): The  Government  has  not  conducted  any  specific  survey  to  determine  the impacts  of  newly  introduced  reforms  such  as  GST  and  Make  in  India. However, the Government has been continuously reviewing the performance of all new initiatives taken by it.  Further, the Government is continuously taking  steps  to  boost  growth  in  the  industry  which  inter  alia  includes putting in place policy framework  to create conducive business environment, strengthening infrastructure network and ensuring availability  of  required  inputs.    Make  in  India  initiative  aims  to  make India a hub for manufacturing, design and innovation.  It focusses on infrastructure, simplified processes, job creation, skill development and fostering innovation in select thrust sectors. This initiative is based on four  pillars  of  New  Processes,  New  Infrastructure,  New  Sectors  and New  Mindset,  which  have  been  identified  to  give  boost  not  only  in manufacturing but also in other sectors. The Government has undertaken  Foreign  Direct  Investment  policy  reforms  in 21  sectors covering  87  areas.  In  addition  to  the  opening  up  of  new  sectors  and enhancement  of  caps  for  existing  sectors  various  conditionalities  for foreign  investments  have  also  been  simplified.  The  Government  has also  taken  up  a  series  of  measures  to  improve  Ease  of  Doing Business. The emphasis has been on simplification and rationalization of the existing rules and introduction of information technology to make governance more efficient and effective.

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