Lok Sabha Question No. 2883 (UNSTARRED), answered on 2019-07-10
Subject: Growth in Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: Nalin Kumar Kateel, B. Y. Raghavendra

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

## LOK SABHA

UNSTARRED QUESTION NO. 2883. TO BE ANSWERED ON WEDNESDAY, THE 10 TH  JULY, 2019.

## GROWTH IN MANUFACTURING SECTOR

## 2883. SHRI NALIN KUMAR KATEEL: SHRI B.Y. RAGHAVENDRA:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  it  is  true  that  in  terms  of  growth,  India's  manufacturing  sector  has underperformed compared to the overall GDP growth in the past decades;
- (b) if so, the details of the growth of that sector;
- (c) the  details  of  the  share  of  manufacturing  in  India's  GDP  during  the  last  three years and the current year;
- (d) whether the Government has any proposal to make manufacturing contribute to sustainable economic growth; and
- (e) if so, the details thereof?

## ANSWER वाणिज् य एवं उद्योग मंत्री श्ी ीीयष  गोय) THE MINISTER OF COMMERCE & INDUSTRY

## (SHRI PIYUSH GOYAL)

(a)&(b):      The  growth  of  India's  Manufacturing  Gross  Value  Added  (GVA)  and  Gross Domestic Product (GDP) from the year 2005-06 at constant (2011-12) prices is given in the table below :

| Growth rate (in per cent) of Manufacturing GVA and GDP at constant (2011-12) prices   | Growth rate (in per cent) of Manufacturing GVA and GDP at constant (2011-12) prices   | Growth rate (in per cent) of Manufacturing GVA and GDP at constant (2011-12) prices   |
|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
| Year                                                                                  | Growth rate of Manufacturing                                                          | Growth rate of GDP                                                                    |
| 2005-06                                                                               | 9.3                                                                                   | 7.9                                                                                   |
| 2006-07                                                                               | 17.8                                                                                  | 8.1                                                                                   |
| 2007-08                                                                               | 7.0                                                                                   | 7.7                                                                                   |
| 2008-09                                                                               | 4.7                                                                                   | 3.1                                                                                   |
| 2009-10                                                                               | 11.0                                                                                  | 7.9                                                                                   |
| 2010-11                                                                               | 7.7                                                                                   | 8.5                                                                                   |
| 2011-12                                                                               | 3.1                                                                                   | 5.2                                                                                   |
| 2012-13                                                                               | 5.5                                                                                   | 5.5                                                                                   |
| 2013-14                                                                               | 5.0                                                                                   | 6.4                                                                                   |
| 2014-15                                                                               | 7.9                                                                                   | 7.4                                                                                   |
| 2015-16                                                                               | 13.1                                                                                  | 8.0                                                                                   |
| 2016-17                                                                               | 7.9                                                                                   | 8.2                                                                                   |
| 2017-18                                                                               | 5.9                                                                                   | 7.2                                                                                   |
| 2018-19                                                                               | 6.9                                                                                   | 6.8                                                                                   |

Source: National Statistical Office.

The figures for the years 2016-17, 2017-18 and 2018-19 are provisional

- (c) :     As per the latest available estimates of GDP by National Statistical Office, the share of GVA of manufacturing sector in GDP at constant prices at 2011-12 for the last three years is given below in the table:

Share  (in  per  cent)  of  Manufacturing  GVA  in  GDP  at  constant  prices (2011-12)

|                        |   2016-17 |   2017-18 |   2018-19 |
|------------------------|-----------|-----------|-----------|
| Share of manufacturing |      16.7 |      16.5 |      16.5 |

Source: National Statistical Office.

The figures for the years 2016-17, 2017-18 and 2018-19 are provisional

- (d)&(e) : The Government has been continuously taking steps to boost manufacturing and spur economic growth. It aims at creating a conducive environment by streamlining the existing regulations and processes and eliminating unnecessary requirements and procedures. 'Make in India' programme 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.

*****