Lok Sabha Question No. 2086 (UNSTARRED), answered on 2020-03-04
Subject: Growth of Industries in Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: Rakesh Singh

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2086. TO BE ANSWERED ON WEDNESDAY, THE 04 TH  MARCH, 2020.

## GROWTH OF INDUSTRIES IN MANUFACTURING SECTOR

## 2086.  SHRI RAKESH SINGH:

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

वाणिज्य

## एवं उद्योग मंत्री

- (a) whether the growth of most of the industries in manufacturing sector of the country has declined and if so, the details thereof;
- (b) whether  the  employment  opportunities  in  this  sector  have  been  affected adversely due to the said problems;
- (c) if so, the details thereof;
- (d) if not, the reasons therefor;
- (e) whether the Government has taken any measures to deal with it; and
- (f) if so, the details thereof?

## ANSWER वाणिज ् य एवं उद्योग मंत्री श्री पीयूष गोयल THE MINISTER OF COMMERCE & INDUSTRY

## ( ) (SHRI  PIYUSH GOYAL)

- (a): The  total  Foreign  Direct  Investment  (FDI)  inflow  was  USD  318.80 billion between April 2014 and September 2019 - representing nearly 50% of the cumulative FDI in India since April 2000.  In 2018-19, FDI inflow stood at a record of USD 62 billion, highest ever recorded for a fiscal year ever.
- (b) to (d): The Ministry of Statistics & Programme Implementation, NSO has been bringing  out  the  employment  related  statistics  in  the  formal  sector including  the  manufacturing  sector,  covering  the  period  September 2017  onwards,  using  information  on  the  number  of  subscribers  who have subscribed under three major schemes, namely the Employees Provident Fund (EPF) scheme, the Employees' State Insurance (ESI) Scheme and the National Pension Scheme (NPS).

Payroll Reporting in India Number of new subscribers/registered

| Source                            | September 2017-March 2018   | April 2018- March 2019   | April 2019- Dec 2019   | Sep 2017- Dec 2019   |
|-----------------------------------|-----------------------------|--------------------------|------------------------|----------------------|
| Employees' Provident Funds Scheme | 84,57,404                   | 1,39,44,349              | 88,07,540              | 3,12,09,293          |
| Employees' State Insurance Scheme | 83,35,929                   | 1,49,65,972              | 1,17,46,073            | 3,50,47,974          |
| National Pension Scheme           | 4,53,446                    | 7,50,400                 | 5,25,024               | 17,28,870            |

Source: Ministry of Statistics and Programme Implementation.

Note-EPF is applicable to establishments having more than 20 workers, ESI is applicable to establishments  having  more  than  10  workers,  NPS  is  applicable  to  any  citizen  of  India, whether resident or non-resident aged between 18-60 years as on date of submission of application

- (e) & (f): Promoting growth of industries is a continuous and ongoing effort of the Government.  Recently, Government  has  taken various steps, in addition to the ongoing schemes, to boost industrial production of India.
1. Infrastructure:
- (a) The National  Infrastructure  Pipeline  (NIP) was  launched  in December, 2019, under which expenditure of Rs 102 lakh crore is  proposed  as  capital  expenditure  in  infrastructure  sectors  in India during the fiscals 2020 to 2025.
- (b) To  reduce  logistics  cost  in  India,  Budget  2020-21  announced release of a National Logistics Policy .
- (c) Accelerated development of highways is  being  undertaken. This  will  include  development  of  2500  Km  access  control highways, 9000 Km of economic corridors, 2000 Km of coastal and land port roads and 2000 Km of strategic highways.
2. Reduction  in  Corporate  Tax: A  new  provision  has  been inserted  in  the  Income-tax  Act  with  effect  from  FY  2019-20 which allows any domestic company an option to pay incometax at the rate of 22% subject to condition that they will not avail any  exemption/incentive.  For  new  manufacturing  companies incorporated on or after 01.10.2019, the rate was brought down to 15 per cent. Budget 2020-21 announced that this reduction of  corporate  tax  rate  to  15  per  cent  for  new  manufacturing companies will be extended to new power generation companies as well.
3. Start-ups: The  government  proposes  to  provide  early  life funding, including a seed fund to support ideation and

development  of  early  stage  Start-ups.  Further,  time  period within which Employee Stock Options (ESOPs) can be issued by  Startups  recognized  by  the  Department  for  Promotion  of Industry  &  Internal  Trade  (DPIIT)  to  promoters  or  Directors holding more than 10% of equity shares, has been enhanced from 5 years to 10 years from the date of their incorporation.

4. For easing Liquidity Problems of NBFCs  and Banks Government announced capital infusion of Rs 70,000 crore into public  sector  banks,  formulated  a  Partial  Credit  Guarantee scheme  for  the  NBFCs  after  the  Union  Budget  2019-20,  and merged 10 major Public Sector Banks into four.
5. Some Trade  Policy measures  were  announced  in  Budget 2020-21 to  promote domestic manufacturing such as increasing basic  customs  duties  (BCD)  on  footwear,  toys  and  furniture; modification  of  Customs  Act  for  strict  enforcement  of  Rules  of Origin  norms for sensitive imports; strengthening of  safeguard duties and anti-dumping duty etc.
3. *******