Lok Sabha Question No. 3273 (UNSTARRED), answered on 2021-03-16
Subject: Growth of Manufacturing Sector
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: D.K. Suresh

## GOVERNMENT OF INDIA

## MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO. 3273

ANSWERED ON 16.03.2021

## GROWTH OF MANUFACTURING SECTOR

## 3273. SHRI D.K.SURESH :

Will  the  Minister  of  HEAVY  INDUSTRIES  AND  PUBLIC  ENTERPRISES भारी उद्योग एवं ऱोक उद्यम मंत्री be pleased to state:

- (a) the growth of manufacturing sector in the country during the last three years, year and category-wise;
- (b) whether the Government has introduced any schemes to incentivize the manufacturing sector and if so, the details thereof;
- (c) whether  the  Government  has  any  estimation  of  the  total  number  of  workforce dependent on the manufacturing sector of the country and if so, the details thereof;
- (d) whether the Government has taken any initiatives for skill training of the workers of manufacturing sector in the country; and
- (e) if so, the details thereof and the response received by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI ARJUN RAM MEGHWAL)

(a) to (e) : The Department for Promotion of Industry and Internal Trade has informed that the Government  has  implemented  major  reforms  in  the  last  one  year  to  boost  domestic manufacturing,  industrial  production  and  GDP  growth.  Production-Linked  Incentive  (PLI) Schemes in 13 key sectors, under the aegis of AatmaNirbhar Bharat, have been announced for enhancing  India's  manufacturing  capabilities  and  exports.  The  PLI  Schemes  for  medical devices; mobile phones; electronic components; pharmaceutical drugs; telecom and network equipment; and electronic technology products have been notified. An Empowered Group of Secretaries  (EGoS)  and  Project  Development  Cells  (PDCs)  have  been  set  up  in  the Ministries/Departments  to  facilitate  and  promote  investment.  A  Single  Window  System involving  clearances  by  Ministries  /Departments  and  selected  State  Governments  is  on  the anvil to provide end-to-end facilitation support. In the Union Budget 2021-22 with a view to promote domestic manufacturing, announcements have been made on setting up seven Mega Investment  Textiles  Parks(MITRA)  over  the  next  3  years  with  plug-and-play  facilities, rationalization of customs duty structure across sectors and for a Scrappage Policy to phase out  old  and  unfit  commercial  vehicles.    The  National  Infrastructure  Pipeline  is  expected  to significantly boost infrastructure and spur growth impulses in the economy.  Reduction in the compliance burden is an ongoing process to spur investment and enhance the ease of doing business in India.

To  boost  domestic  manufacturing  various  measures  like  amendments  of  Public Procurement Rules to  enhance minimum local content; setting up of Fund of Funds, Seed Fund, Credit Guarantee Schemes to build up  a strong eco-system for nurturing Innovation and Startups; development of Industrial Land/ Land Bank and Industrial Information System have been taken; creating world class infrastructure through developing nodes across various Industrial  Corridors;  formulation  of  National  Master  Plan  on  multimodal  connectivity infrastructure; Industrial development schemes for the North-East States, Union Territory of J  &K  and Union Territory of Ladakh, for the States of Himachal Pradesh & Uttarakhand have been in force to boost industrialization in the NE and the hilly States.

The annual  growth rate  (YoY in  %) of  the  Manufacturing  sector  during  last  3  years  is  as follows:

| Overall growth of Manufacturing Sector   |   2017-18 |   2018-19 |   2019-20 |
|------------------------------------------|-----------|-----------|-----------|
|                                          |       4.6 |       3.9 |      -1.4 |

As regards initiatives for skill training of workforce of the manufacturing sector, the Ministry  of  Skill  Development  and  Entrepreneurship  (MSDE)  has  informed  that  over  20 Central Ministries/ Departments including MSDE which are involved in the implementation of  over  40  skill  development  schemes  for  meeting  the  needs  of  various  sectors  of  the economy including the manufacturing sector. MSDE is implementing the following schemes viz. Pradhan MantriKaushalVikasYojana (PMKVY) and National Apprenticeship Promotion Scheme  (NAPS)  for  short-duration  skill  training;  and  Craftsmen  Training  Scheme  (CTS) through  the  Industrial  Training  Institutes  (ITIs)  and  Crafts  Instructor  Training  Scheme (CITS) through 33 National Skill Training Institutes (NSTIs) for long-term training.

Short-term  training :  Under  PMKVY,  short-duration  training  is  provided  through  three routes, namely Short-Term Training (STT) for fresh skilling of school / college drop outs and unemployed  youth;  Recognition  of  Prior  Learning  (RPL)  to  recognize  the  existing skills through  orientation;  and  Special  Projects  to  address skilling  requirements  of  the  vulnerable groups.  From  2016-17  to  2020-21  (up  to  19.01.2021),  106.96  lakh  candidates  have  been trained across all three formats in job roles pertaining to various sectors including 31.93 lakh candidates trained in the manufacturing sector. During this period, 18.95 lakh candidates from STT  and  Special  Projects  training  routes  have  been  reported  placed  in  various  sectors including 5.34 lakh candidates in manufacturing sector jobs. RPL orients candidates and does not mandate placements.

In addition, under the fee-based market-led model of the National Skill Development Corporation, 24,025 trainings and 7,973 placements have been done in manufacturing since inception of this model in 2014-15.

Under NAPS, the number of candidates trained  since 2016-17 for various job roles including manufacturing sector job roles is 9.60 lakh. This scheme does not have placement as a criteria.

Long-term  training: Under  CTS,  the  number  of  candidates  trained  since  2016-17  for various job roles in 137 trades including manufacturing sector job roles is 52.98 lakh. This scheme does not have placement as a criteria.

Under CITS, the number of persons who have received skill training during the last ten years and 2020-21 is 2.36 lakh. After completion of CITS training, the trained individuals can be employed as Crafts Instructor in  ITIs in  their corresponding trades/ sectors and can also join the industry as Technicians.

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