Lok Sabha Question No. 1703 (UNSTARRED), answered on 2020-09-21
Subject: Decline in Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: Nusrat Jahan Ruhi

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1703. TO BE ANSWERED ON MONDAY, THE 21 ST   SEPTEMBER, 2020.

## DECLINE IN MANUFACTURING SECTOR

## 1703.  SHRIMATI NUSRAT JAHAN RUHI:

## Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether it is a fact that the country's manufacturing sector has been in trouble for the last three months specially post 23rd March, 2020 due to COVID-19 pandemic;
- (b) if  so,  whether it has become a challenge for the country's private as well as State owned firms; and
- (c) if  so,  the  details  of  the  steps  taken  by  the  Government  to  safeguard  the interest of the country's Private and Public Sector firms and to enable them to sell their products in global markets at competitive prices?

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

- (a) & (b): The sudden outbreak of COVID-19 has severely impacted more than 196 countries across the globe including some of the major players like USA,  European  Union,  UK,  and  India.  Both  World  Bank  and  IMF estimate contraction in global GDP for FY 2020-21 due to the spillover effects  of  the  lockdown  to  curb  the  spread  of  COVID-19  pandemic. With  the  gradual  opening  up  of  the  economy  after  the  nation-wise lockdown, manufacturing activity has started to normalize.
- (c): Government  has  implemented  several  measures  to  safeguard  the interest of the country's Private and Public Sector firms and to enable them  to  sell  their  products  in  global  markets  at  competitive  prices which, inter-alia, include:
- (i) Tariff  and  non-tariff  measures have  been  taken  to  regulate nonessential import of goods and services. Appropriate use of trade remedies  by  way  of  safeguard,  countervailing  and  anti-dumping duties have been used to protect domestic manufacturers. Common  digital  platform for Certificate of Origin  has  been launched to facilitate  trade  and  increase  Free  Trade  Agreement

utilization  by  exporters.    Government  is  promoting  districts  as export  hubs  by  identifying  products  with  export  potential  in  the District,  addressing  bottlenecks  for  exporting  these  products, supporting local exporters/manufacturers to generate employment in the District.

- (ii) Relief measures have been given to MSMEs such as collateralfree lending program with 100 percent credit guarantee, subordinate  debt  for  stressed  MSMEs  with  partial  guarantee, partial credit guarantee  scheme  for  public sector  banks  on borrowings  of  non-bank  financial  companies,  housing  finance companies (HFCs), and micro finance institutions, Fund of Funds for  equity  infusion  in  MSMEs,  additional  support  to  farmers  via concessional credit, as well as a credit facility for street vendors (PM SVANidhi), amongst others.
- (iii)   Several  Regulatory  and  compliance measures have been taken, viz. postponing tax-filing and other compliance deadlines, reduction in penalty interest rate for overdue GST filings, change in government procurement rules, faster clearing of MSME dues, IBC related relaxations for MSMEs, amongst others.
- (iv)   Structural reforms announced as part of the Atmanirbhar Package which,  inter  alia,  include  deregulation  of  the  agricultural  sector, change in definition of MSMEs, new PSU policy, commercialization of coal mining, higher FDI limits in defence and space  sector,  development  of  Industrial  Land/  Land  Bank  and Industrial  Information  System,  revamp  of  Viability  Gap  Funding scheme  for  social  infrastructure,  new  power  tariff  policy  and incentivizing States to undertake sector reforms.
- (v) Government has launched National Infrastructure Pipeline, expanded  Phase  Manufacturing  Programme,  Production  Linked Incentive Schemes and created Centralised Investment Clearance  Cell  for  end  to  end  support  for  investment.    Further, reduction in EPF contributions, employment provision for migrant workers; insurance coverage for workers in the healthcare sector; and  wage  increase  for  MGNREGA  workers  and  support  for building and construction workers, collateral free loans to self-help groups are some other relief measures.

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