Lok Sabha Question No. 788 (UNSTARRED), answered on 2016-11-21
Subject: Industrial Growth
Ministry: COMMERCE AND INDUSTRY
Asked by: RAM KUMAR SHARMA KUSHWAHA, LALLU SINGH, PARAYAMPARANBIL KUTTAPPAN BIJU, GOWDAR MALLIKARJUNAPPA SIDDESHWARA

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

## LOK SABHA

UNSTARRED QUESTION NO. 788. TO BE ANSWERED ON MONDAY, THE 21 ST  NOVEMBER,  2016.

## INDUSTRIAL GROWTH

788.   SHRI RAM KUMAR SHARMA:

SHRI LALLU SINGH:

SHRI P.K. BIJU:

SHRI G.M. SIDDESHWARA:

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

## वाणिज् यवव द्यग ं ्री

- (a) whether  it  is  true  that  even  now  industrial  growth  rate  has  not  been  able  to stabilise despite the fact that a systematic prescribed industrial policy has been implemented in the country;
- (b) if so, the reasons therefor and the reaction of the Government thereto;
- (c) the  average  rate  of  industrial  growth  during  each  month  from  June,  2014  to September, 2016; and
- (d) the  corrective  measures  taken  by  the  Government  to  boost  the  industrial development and growth in the country?

## 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) & (b):

The  industrial  performance  measured  in  terms  of  Index  of  Industrial Production  (IIP)  reflects  movements  in  production  of  manufacturing, mining and electricity over base year 2004-05. The annual growth of IIP increased  from  (-)  0.1  %  in  2013-14  to  2.8  %  in  2014-15  and  slightly decreased to 2.4% in 2015-16. However, as per the new series estimates (2011-12 prices) of National Accounts Statistics, the growth rate of Gross Value  Added  from  Industry  at  constant  (2011-12)  prices  has  increased continuously  from  5.0  %  in  2013-14  to  5.9  %  in  2014-15  and  further  to 7.4 % in 2015-16.

The  reasons  for  fluctuation  in  IIP  in  recent  years  include,  inter-alia, moderation in domestic demand, changes in input costs and slowdown in economies of other parts of the world. Government is continuously taking steps  to  boost  growth  in  industries  which  include  measures  relating  to policy,  procedures,  improving  infrastructure  and  improving  availability  of required inputs.

- (c): Month-wise rate of growth of IIP from June, 2014 to September, 2016 is enclosed at annexure-1.
- (d): Government has been taking steps to boost industrial  development  and growth  in  the  country.  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  licensing.  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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ANNEXURE-I ANNEXURE REFERRED TO IN REPLY TO PART (C) OF THE LOK SABHA UNSTARRED QUESTION NO. 788 FOR ANSWER  ON 21.11.2016.

| Period   |   Growth of the IIP over the same month of previous Year (%) |
|----------|--------------------------------------------------------------|
| Jun'14   |                                                          4.3 |
| Jul'14   |                                                          0.9 |
| Aug'14   |                                                          0.5 |
| Sep'14   |                                                          2.6 |
| Oct'14   |                                                         -2.7 |
| Nov'14   |                                                          5.2 |
| Dec'14   |                                                          3.6 |
| Jan'15   |                                                          2.8 |
| Feb'15   |                                                          4.8 |
| Mar'15   |                                                          2.5 |
| Apr'15   |                                                          3   |
| May'15   |                                                          2.5 |
| Jun'15   |                                                          4.2 |
| Jul'15   |                                                          4.3 |
| Aug'15   |                                                          6.3 |
| Sep'15   |                                                          3.7 |
| Oct'15   |                                                          9.9 |
| Nov'15   |                                                         -3.4 |
| Dec'15   |                                                         -0.9 |
| Jan'16   |                                                         -1.6 |
| Feb'16   |                                                          1.9 |
| Mar'16   |                                                          0.3 |
| Apr'16   |                                                         -1.3 |
| May'16   |                                                          1.3 |
| Jun'16   |                                                          2.2 |
| Jul'16   |                                                         -2.5 |
| Aug'16   |                                                         -0.7 |
| Sep'16   |                                                          0.7 |

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