Lok Sabha Question No. 510 (UNSTARRED), answered on 2019-11-20
Subject: Low Growth Rate in Core Sectors
Ministry: COMMERCE AND INDUSTRY
Asked by: Shivkumar Chanabasappa Udasi

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 510. TO BE ANSWERED ON WEDNESDAY, THE 20 TH  NOVEMBER, 2019.

## LOW GROWTH RATE IN CORE SECTORS

## 510.   SHRI SHIVAKUMAR C. UDASI:

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

वाणिज्य

## एवं उद्योग मंत्री

- (a) whether the data released by the Government reveals low growth rate in core sectors  and  if  so,  the  details  thereof  and  the  reaction  of  the  Government thereto;
- (b) the  extent  to  which  the  core  sector  would  impact  the  Index  of  Industrial Production; and
- (c) if so, the details thereof and the measures taken by the Government to further boost the core sector growth?

## ANSWER वाणिज ् य एवं उद्योग मंत्री ( श्री पीयूष गोयल ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a): As  per  the  latest  data  available,  the  growth  of  core  sectors  as measured by  the  Index  of  Eight  Core  Industries  (ICI),  registered  the growth rate of 1.3 per cent during April - September, 2019-20. Global growth is forecast at 3.0% for 2019, its lowest level since 2008-09 as per the World Economic Outlook of the IMF, October 2019.  However, despite this global downturn, India continues to grow faster than rest of the world.
- (b): The Eight Core Industries (ICI) comprises 40.27 per cent of the weight of  items  included  in  the  Index  of  Industrial  Production  (IIP)  with  the base year 2011-12.
- (c): The Government is continuously taking steps to boost industrial growth including infrastructure sector which inter alia, includes putting in place a policy framework to create conducive business environment, strengthening infrastructure network and ensuring availability of

required inputs. Foreign Direct Investment (FDI) policy and procedures have  been  simplified  and  liberalised  progressively.  The  Government has  also  taken  up  a  series  of  measures  to  improve  Ease  of  Doing Business. Following sector specific measures have been taken by the

Government to boost the core sector: SteelThe  Government  has  taken  corrective  steps  to  increase  the domestic demand in steel sector which amongst others include trade measures such as anti dumping duties, safeguard duties and notified Quality Control Order thereby making BIS standards mandatory for all steel products and imports; notified the policy on Domestically Manufactured  Iron  &  Steel  Products  in  government  procurements which  facilitates  domestic  value  addition;  and  notified  National  Steel Policy  2017  with  a  view  to  encourage  long  term  growth  of  domestic steel sector.

CoalThe Government has come up with new methodology for auction of coal mines for sale of coal. The salient features of the methodology for auction of coal are no restriction on the sale and/or utilization of coal from  the  coal  mine;  coal  can  be  exported;  more  flexibility  in  coal production schedule;  FDI to the extent of 100% under automatic route is to be allowed in coal mining activities.

ElectricityGovernment has introduced various operational reforms to improve the power supply, system performance and financial health of the  sector  such  as  Deen  Dayal  Upadhyaya  Gram  Jyoti  Yojana (DDUGJY in 2014), Integrated Power Development Scheme (IPDS in 2014),  Ujwal  Discom  Assurance  Yojana  (UDAY  in  2015),  Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya in 2017), etc. For the promotion  of  Renewable  Energy  Government  has  fixed  a  cumulative target  of  addition  of  175  GW  Renewable  Energy  based  electric installed  capacity  by  2022  with  an  objective  to  promote  cleaner  and sustainable energy.

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