Lok Sabha Question No. 1095 (UNSTARRED), answered on 2018-12-17
Subject: Growth of Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: DODDAALAHALLI KEMPEGOWDA SURESH, S.P. MUDDAHANUMEGOWDA, B.V. NAYAK, NALIN KUMAR KATEEL

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1095. TO BE ANSWERED ON MONDAY, THE 17 TH  DECEMBER, 2018.

## GROWTH OF MANUFACTURING SECTOR

1095.  SHRI D.K. SURESH:

SHRI S.P. MUDDAHANUME GOWDA:

SHRI B.V. NAIK:

SHRI NALIN KUMAR KATEEL:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  it  is  a  fact  that  the  Union  Government  is  aware  that  growth  of manufacturing sector has witnessed unprecedented decline;
- (b) if so, the details of growth  in manufacturing  sector, including leather, garments/textiles, steel, etc. during the last three years and the current year, year-wise;
- (c) whether the Union Government has assessed the impact of this decline on Indian industries; and
- (d) if  so,  the  details  thereof  along  with  the  corrective  measures  taken  by  the Government in this regard?

## ANSWER

## वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a) & (b): As per Index of Industrial Production, the performance of manufacturing sector has registered a growth of 5.6 per cent(provisional) during April- October 2018-19 as compared to 2.1 per cent growth in the corresponding period of previous year. Industry-wise (as per 2-digit level National Industrial Classification 2008) growth rate during  the  last  three  years  and  the  current  year  as  per  IIP  is  at Annexure.
- (c) & (d): Overall performance of manufacturing sector  is an interplay of several factors  such  as  domestic  demand,  demand  for  exports,  level  of investment and prevailing prices. The Government aims at creating a conducive  environment  by  streamlining  the  existing  regulations  and

processes and eliminating unnecessary requirements and procedures. 'Make in India' programme has been launched which aims at making India  a  global  hub  for  manufacturing,  research  &  innovation  and  an integral part of the global supply chain. Several steps to boost domestic manufacturing  are  being  taken  as  part  of  schemes  such  as  'Startup India',  'Ease  of  Doing  Business',  Modified  Industrial  Infrastructure Upgradation Scheme, Business Reform Action Plan, Intellectual Property  Rights  (IPR)  Policy  etc.  Further, Foreign  Direct  Investment (FDI)  policy  and  procedures  have  been  simplified  and  liberalized progressively.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 1095 FOR ANSWER ON 17.12.2018

Annual  growth  rates  (in  per  cent)  of  Manufacturing  subgroups  including annual  sectoral  growth  as  per  IIP  with  base  year  2011-12,  as  per  National Industrial Classification (NIC-2008) - 2 digit classification

| Industry Code   | Description                                                                                                                  |   2015-16 |   2016-17 |   2017-18 |   2018-19 (Apr-Oct) Provisional |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|-----------|-----------|-----------|---------------------------------|
| 10              | Manufacture of food products                                                                                                 |      -5.6 |      -5.5 |       9.3 |                            11.9 |
| 11              | Manufacture of beverages                                                                                                     |       1.4 |      -3.1 |      -0.8 |                             7   |
| 12              | Manufacture of tobacco products                                                                                              |       4   |     -15   |     -17.9 |                            -8.7 |
| 13              | Manufacture of textiles                                                                                                      |       2.1 |      -1.7 |      -0.3 |                             3.6 |
| 14              | Manufacture of wearing apparel                                                                                               |      14.5 |      15.8 |      -9.4 |                             6   |
| 15              | Manufacture of leather and related products                                                                                  |       0.5 |      -1.1 |       1.3 |                             3   |
| 16              | Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials |       2.3 |      -4.5 |      -0.8 |                            15.5 |
| 17              | Manufacture of paper and paper products                                                                                      |       1.2 |      -2.1 |      -4.5 |                            -2.4 |
| 18              | Printing and reproduction of recorded media                                                                                  |       3.8 |       2.1 |      -5.9 |                            -5.4 |
| 19              | Manufacture of coke and refined petroleum products                                                                           |       4.7 |       4.7 |       3.7 |                             4.6 |
| 20              | Manufacture of chemicals and chemical products                                                                               |       4.1 |       2.5 |      -0.3 |                             4.1 |
| 21              | Manufacture of pharmaceuticals, medicinal chemical and botanical products                                                    |      13   |      30.4 |      23.1 |                             3.2 |
| 22              | Manufacture of rubber and plastics products                                                                                  |       0.5 |       1.9 |      -8.2 |                            -1.3 |
| 23              | Manufacture of other non-metallic mineral products                                                                           |       2   |      -0.5 |       3.6 |                            11   |
| 24              | Manufacture of basic metals                                                                                                  |       0.6 |       5.1 |       5.7 |                             3   |
| 25              | Manufacture of fabricated metal products, except machinery and equipment                                                     |      -2.4 |       2   |       2.3 |                             6.1 |
| 26              | Manufacture of computer, electronic and optical products                                                                     |       5.1 |       2.5 |      17.2 |                            20.3 |
| 27              | Manufacture of electrical equipment                                                                                          |       5.2 |      -4.5 |     -12.4 |                             3.7 |
| 28              | Manufacture of machinery and equipment n.e.c.                                                                                |       3.2 |       7.7 |       5.6 |                             7.2 |
| 29              | Manufacture of motor vehicles, trailers and semi-trailers                                                                    |      -1.5 |       0.6 |      12.6 |                            16.8 |
| 30              | Manufacture of other transport equipment                                                                                     |       2.3 |       4.4 |      14   |                            14.2 |
| 31              | Manufacture of furniture                                                                                                     |      41.8 |       7.5 |      11.6 |                            30.2 |
| 32              | Other manufacturing                                                                                                          |      13.4 |       4.8 |     -15.4 |                           -18.1 |
|                 | Mining                                                                                                                       |       4.3 |       5.3 |       2.3 |                             3.8 |
|                 | Manufacturing                                                                                                                |       2.8 |       4.4 |       4.6 |                             5.6 |
|                 | Electricity                                                                                                                  |       5.7 |       5.8 |       5.4 |                             6.8 |
|                 | General Index (IIP)                                                                                                          |       3.3 |       4.6 |       4.4 |                             5.6 |

Source: Central Statistics Office.