Lok Sabha Question No. 486 (UNSTARRED), answered on 2020-09-16
Subject: Industrial Growth
Ministry: COMMERCE AND INDUSTRY
Asked by: Upendra Singh Rawat

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

## LOK SABHA

## UNSTARRED QUESTION NO. 486. TO BE ANSWERED ON WEDNESDAY, THE 16 TH  SEPTEMBER, 2020.

## INDUSTRIAL GROWTH

## 486.   SHRI UPENDRA SINGH RAWAT:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the rate of industrial growth during the last three years and the current year in the country particularly in Uttar Pradesh;
- (b) the details of industrial sectors registering low/ negative growth rate alongwith the reasons therefor; and
- (c) the  measures  taken  by  the  Government  to  increase  the  growth  rate  in  the aforesaid sectors and the outcome achieved therefrom?

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

- (a) & (b): The rate of industrial growth in percentage terms measured by Index of Industrial Production during the last three years and current year is given below:

| Growth of Index of Industrial Production(IIP)   | Growth of Index of Industrial Production(IIP)   | Growth of Index of Industrial Production(IIP)   | Growth of Index of Industrial Production(IIP)   | Growth of Index of Industrial Production(IIP)   |
|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|
| Years                                           | 2017-18                                         | 2018-19                                         | 2019-20                                         | 2020-21                                         |
| Overall growth of Industries in India           | 4.4                                             | 3.8                                             | -0.8                                            | -29.2 (Apr-July)*                               |
| Growth of Industries in U.P                     | 6.5                                             | 5.4                                             | -3.8                                            | -21.9 (Apr-June)*                               |

Tobacco products, paper and paper products, chemicals and chemical products, rubber and plastic products and printing and reproduction of recorded media have registered low/ negative growth rate over the last three years and the current year.  Strength of Industrial Sector can also be  gauged from  the  ability  to  attract  Foreign  Direct  Investment  (FDI) which grew at 20% in 2019-20.

The unprecedented supply chain disruption and the overall decrease in demand  due  to  the  Covid-19  pandemic  resulted  in  the  low/negative growth of the sectors.

- (c): Promotion  of  industries  is  a  continuous  and  ongoing  effort  of  the Government. Government has taken a number of steps, in addition to the ongoing schemes, to boost the growth of industries. The measures taken in few important areas are highlighted below:
- 1) Atmanirbhar  Package to boost industrial  growth  has  been announced by the Government for Rs. 20.97 lakh crore with bold reforms  in  a  number  of  sectors.  The  Emergency  Credit  Line Guarantee  Scheme  (ECLGS),  having  provision  of  Rs  3  lakh crores, is in the form of a fully guaranteed emergency credit line to monitor lending institutions.     Financial support has been given to the  stressed  MSMEs  with  infusion  of  Rs.20,000  crore  equity support  through  Subordinate  Debt.  Fund  of  Funds  created  to infuse  equity  worth  Rs.50,000  crore  in  the  MSME  Sector  by setting  up  Rs.10,000  crore  Corpus  Fund.  Also,  Government  is ensuring timely payment to the MSMEs  by  instructing all Government  of  India  and  CPSEs  to  clear  all  receivables  of MSMEs  within  the  next  45  days.  Procurement  from  domestic companies  is  being  encouraged  by  disallowing  global  tender  in government procurement tenders upto Rs 200 crores.
- 2) Higher  FDI has  been  allowed  through  automatic  route  in  a number of sectors by streamlining and liberalising several sectors. Empowered Group of Secretaries (EGoS) & Project Development Cells  (PDCs)  have  been  set  up  in  order  to  provide  support  and facilitation to investors for investing in India and to boost growth in keysectors of the economy
- 3) A centralized  Investment  Clearance  Cell is  being  created, which would provide end-to-end facilitation support, including preinvestment advisory, information related to land  banks and facilitating clearances at Central and State level.
- 4) Corporate  Taxes have  been  reduced  to  encourage  domestic manufacturing.  With  effect  from  FY  2019-20,  corporate  tax  for domestic companies has been reduced to 22 per cent and for new manufacturing companies, incorporated on or after 01.10.2019 to 15 per cent.  The tax rate of 15% has also been extended to new electricity generation companies.
- 5) In order to realize the economies  of scale, incentives are extended to units as per annual increases in their production/sale under Production  Linked  Incentive  (PLI)scheme .  PLI  scheme has been announced for large scale electronics manufacturing(Rs.40,955 crore), medical devices (Rs.3,420 crore) and KSMs/ Drug Intermediatesand APIs (Rs. 6,940 crore).
- 6) In order to promote domestic manufacturing of sectors facing high imports  or  cheaper  imports,  incentives  are  provided  through rationalization of Basic Customs Duty on identified products under Phased Manufacturing Programme (PMP) . Presently, PMP is in operation for Cellular Mobile Handsets and e-vehicles.
- 7) The  Government  has  launched  the National Infrastructure Pipeline (NIP) in December, 2019 to provide world-class infrastructure across the country and improve the quality of life for all citizens. As per Final Report submitted by the NIP Task Force, the projected total expenditure on infrastructure would be of Rs. 111 lakh crore during the period FY 2020-25.

India has responded  gloriously to the Covid-19 challenge. Indian manufacturers  have  enhanced  production  of  PPE,  N-95/N-99  masks, HCQ  medicine  and  oxygen  cylinders  to  meet  the  domestic/external requirements.  The  Indian  economy  is  known  for  its  resilience  and  is expected  to  gradually  return  to  its  high  growth  performance  in  the coming months.

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