Lok Sabha Question No. 285 (UNSTARRED), answered on 2021-02-03
Subject: Growth Rate in Core Sectors
Ministry: COMMERCE AND INDUSTRY
Asked by: Ravneet Singh

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

## LOK SABHA

## UNSTARRED QUESTION NO. 285. TO BE ANSWERED ON WEDNESDAY, THE 3RD FEBRUARY, 2021.

## GROWTH RATE IN CORE SECTORS

## 285. SHRI RAVNEET SINGH BITTU:

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

- (a) whether the core sector growth is in negative zone for the first time in four years in the country;
- (b) if so, the details thereof of the last one year, sector-wise and month-wise along with details of the worst impacted sectors in terms of core growth;
- (c) whether the Government has identified the reasons for the drop in the core sector growth in the country;
- (d) if so, the details thereof, sector-wise; and
- (e) the details of the measures taken/being taken by the Government to ensure an upward trend in core sector growth in the country?

## ANSWER

## वाणिज् यवव द्योग म त्रालयमेंराज् यम त्रर(श्रर सोमप्रकाश) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b): After a steep decline in March and April 2020, the overall growth rate of production  of  eight  core  industries  started  showing  signs  of  recovery since  May  2020.    The  sector-wise  and  month-wise  details  of  growth rate in the eight core industries since November 2019 are at Annex-I.
- (c) & (d): The production of eight Core industries has been adversely affected by the  Covid-19  pandemic  and  associated  disruptions  in  demand  and supply  of  goods  and  services.    Some  of  the  demand  side  factors responsible for drop in production are decline in private final consumption expenditure and gross fixed capital expenditure, uncertainty  in  business  sentiments,  etc.  The  imposition  of  nationwide lockdown to contain the outbreak of Covid-19 pandemic was a major supply side factor responsible for drop in the core sector growth.
- (e): Industrial growth depends on a number of factors including structural, external, fiscal and industrial factors.  The sudden outbreak of COVID19 has severely impacted some of the major economies of the world,

viz. USA, European Union, UK and Japan.  In India too, various sectors were  affected  due  to  the  nation-wide  lockdown.  However,  after  the lockdown  was  relaxed,  improvement  has  been  witnessed  in  several sectors of the economy.

Some of the steps taken by the Government to ensure growth in core sector and to promote domestic industry are as follows:

- (i) Government is promoting Public Procurement, National Infrastructure Pipeline and Production Linked Incentive Schemes to boost domestic production. Government has also announced Aatmanirbhar  Package  of  Rs  29.87  lakh  crores  (15%  of  GDP) with  bold  reforms  in  number  of  sectors.  Announcement  of structural reforms such as deregulation of the agricultural sector, change  in definition of MSMEs,  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 as part of the Aatmanirbhar Package.
- (ii) Regulatory  and  compliance  measures  such  as  postponing  taxfiling  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  have  been  taken  to boost the industry.
- (iii) To  facilitate  investment  in  the  country,  Empowered  Group  of Secretaries (EGoS) and Project Development Cells (PDCs) have been set up in Ministries/Departments.
- (iv) To  contain surge  in imports  of  non-essential  commodities, corrective  steps  such  as  increase  in  basic  customs  duty  or through  other  non-tariff  measures  like  issue  of  Quality  Control Orders  have  been  taken.      One  District  One  Product  Scheme has also been launched to realize the true potential of a district.

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## ANNEXURE-I

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  &  (b)  OF  THE    LOK SABHA UNSTARRED QUESTION NO. 285 FOR ANSWER ON 3 RD  FEBRUARY, 2021.

## Growth rate (in %) of production of Eight Core Industries (Year on Year basis)

| Months/Years      | Overall Growth rate   |   Coal |   Crude Oil |   Natural Gas |   Petroleum Refinery Products |   Fertilizers |   Steel |   Cement |   Electricity |
|-------------------|-----------------------|--------|-------------|---------------|-------------------------------|---------------|---------|----------|---------------|
| Weight (%)        |                       |  10.33 |        8.98 |          6.88 |                         28.04 |          2.63 |   17.92 |     5.37 |         19.85 |
| Nov-19            | 0.7                   |  -3.5  |       -6    |         -6.4  |                          3.1  |         13.6  |    7    |     4.3  |         -4.9  |
| Dec-19            | 3.1                   |   6.1  |       -7.4  |         -9.2  |                          3    |         10.2  |    8.7  |     5.5  |          0    |
| Jan-20            | 2.2                   |   8    |       -5.3  |         -9    |                          1.9  |         -0.1  |    1.6  |     5.1  |          3.2  |
| Feb-20            | 6.4                   |  11.3  |       -6.4  |         -9.6  |                          7.4  |          2.9  |    2.9  |     7.8  |         11.5  |
| Mar-20            | -8.6                  |   4    |       -5.5  |        -15.1  |                         -0.5  |        -11.9  |  -21.9  |   -25.1  |         -8.2  |
| Apr-20            | -37.9                 | -15.5  |       -6.4  |        -19.9  |                        -24.2  |         -4.5  |  -82.8  |   -85.2  |        -22.9  |
| May-20            | -21.4                 | -14    |       -7.1  |        -16.8  |                        -21.3  |          7.5  |  -40.4  |   -21.4  |        -14.8  |
| Jun-20            | -12.4                 | -15.5  |       -6    |        -12    |                         -8.9  |          4.2  |  -23.2  |    -6.8  |        -10    |
| Jul-20            | -7.6                  |  -5.7  |       -4.9  |        -10.2  |                        -13.9  |          6.9  |   -6.5  |   -13.5  |         -2.4  |
| Aug-20            | -6.9                  |   3.6  |       -6.3  |         -9.5  |                        -19.1  |          7.3  |    0.5  |   -14.5  |         -1.8  |
| Sep-20            | 0.6                   |  21    |       -6    |        -10.6  |                         -9.5  |         -0.3  |    6.2  |    -3.4  |          4.8  |
| Oct-20*           | -0.9                  |  11.7  |       -6.2  |         -8.6  |                        -17    |          6.3  |    4    |     3.2  |         11.2  |
| Nov-20*           | -1.4                  |   3.3  |       -4.9  |         -9.3  |                         -4.8  |          1.6  |   -0.5  |    -7.3  |          3.5  |
| Dec-20*           | -1.3                  |   2.2  |       -3.6  |         -7.2  |                         -2.8  |         -2.9  |   -2.7  |    -9.7  |          4.2  |
| 2016-17(Apr-Mar)  | 4.8                   |   3.2  |       -2.5  |         -1    |                          4.9  |          0.2  |   10.7  |    -1.2  |          5.8  |
| 2017-18(Apr-Mar)  | 4.3                   |   2.6  |       -0.9  |          2.9  |                          4.6  |          0.03 |    5.6  |     6.3  |          5.3  |
| 2018-19(Apr-Mar)  | 4.4                   |   7.4  |       -4.1  |          0.8  |                          3.1  |          0.3  |    5.1  |    13.3  |          5.2  |
| 2019-20(Apr-Mar)  | 0.4                   |  -0.4  |       -5.9  |         -5.6  |                          0.2  |          2.7  |    3.4  |    -0.9  |          0.9  |
| 2020-21(Apr-Dec)* | -10.1                 |  -1.9  |       -5.7  |        -11.6  |                        -13.5  |          3    |  -16.7  |   -18.3  |         -3.7  |

* Provisional Eight Core Industries includes Coal, Crude Oil, Natural Gas, Petroleum Refinery, Fertilizers, Steel, Cement & Electricity.

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