Lok Sabha Question No. 920 (UNSTARRED), answered on 2018-12-14
Subject: Sectoral Growth
Ministry: FINANCE
Asked by: NALIN KUMAR KATEEL, DODDAALAHALLI KEMPEGOWDA SURESH

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 920 TO BE ANSWERED ON DECEMBER 14, 2018

## SECTORAL GROWTH

920. SHRI NALIN KUMAR KATEEL: SHRI D.K. SURESH:

Will the Minister of FINANCE be pleased to state:

- (a)  the details of the contribution of various sectors, i.e. , service, manufacturing and others to the GDP of the country during the last three years;
- (b) whether there is huge stagnation in manufacturing sector's contribution to the economy, if so, the details thereof;
- (c) whether the Government is taking any serious measures to revive manufacturing sector to produce more employment and contribute to GDP of the country; and
- (d)  if so, the details thereof?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PON RADHAKRISHNAN)

- (a)  &  (b)  The  share  of  various  sectors  (including  manufacturing  and  services  sector)  in Gross Value Added (GVA) during last three years is given in the table below.

| Share of sectors in GVA at current prices (per cent)   | Share of sectors in GVA at current prices (per cent)   | Share of sectors in GVA at current prices (per cent)   | Share of sectors in GVA at current prices (per cent)   |
|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|
| Sector                                                 | 2015-16 (2nd RE)                                       | 2016-17 (1st RE)                                       | 2017-18 (PE)                                           |
| Agriculture, forestry & fishing                        | 17.7                                                   | 17.9                                                   | 17.1                                                   |
| Industry                                               | 29.8                                                   | 29.3                                                   | 29.1                                                   |
| ( Of which) Manufacturing                              | 16.8                                                   | 16.8                                                   | 16.7                                                   |
| Services                                               | 52.5                                                   | 52.8                                                   | 53.9                                                   |

Source: Central Statistics Office;

nd

Notes: 2

RE: Second Revised Estimates, 1

Estimates.

In first half (April-September) of 2018-19, share of manufacturing sector in GVA was 16.9 per cent, higher as compared to 16.5 per cent in the first half of 2017-18.

- (c)  &  (d):  Promoting  the  growth  of  manufacturing  sector  and  hence  increasing  its contribution to the economy remains one among the utmost priorities of the Government. The  Government  has  put  in  place  a  policy  framework  to  create  conducive  business environment and improved infrastructure network. The Make in India initiative launched by

st

RE: First Revised Estimates, PE: Provisional the Government focuses on infrastructure development, simplified processes, job creation, skill  development  and  fostering  innovation  in  the  select  manufacturing  sectors.  Startup India  initiative  was  launched  to  build  a  strong  eco-system  for  nurturing  innovation  and startups  and  to  drive  economic  growth  and  generate  employment  opportunities.  The Government has also taken up a series of measures to improve ease of doing business, which has borne results with the position of India improving from 142 nd rank in 2014 to 77 th rank  in  2018.  Further,  the  Foreign  Direct  Investment  policy  has  been  simplified  and liberalized  progressively  and  now  most  sectors  are  on  automatic  route.  Pradhan  Mantri Mudra Yojana was launched to extend collateral free loans by banks, non-banking financial companies and micro finance institutions to small/micro  business enterprises  in  the nonagricultural sector to individuals to enable them to setup or expand their business activities and to generate self-employment.

In  addition,  Government  announced  special  package  for  footwear  and  leather  sector  to develop infrastructure, facilitate additional investments, generate employment and increase production.  A  special  package  including  a  slew  of  labour-friendly  measures  to  promote employment generation,  economies of  scale  and boost  exports  was  introduced  in  textile and apparel sector. Key initiatives have been announced recently by the Government to help growth, expansion and facilitation of Micro, Small & Medium Enterprises.

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