Lok Sabha Question No. 4825 (UNSTARRED), answered on 2023-03-29
Subject: Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: Thalikkottai Rajuthevar Baalu

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4825. TO BE ANSWERED ON WEDNESDAY, THE 29 TH  MARCH, 2023.

## MANUFACTURING SECTOR

## 4825. SHRI T.R. BAALU:

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

- (a) whether it is a fact that the manufacturing sector's share in Gross Domestic Product (GDP) has been stagnating at around 15% of GDP in the last eight years;
- (b) if so, the details thereof; and
- (c) the details of countermeasures taken by the Government to address this major issue  including  the  outcome  of  improvements  as  a  result  of  these  remedial measures?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b): The share of manufacturing sector in Gross Domestic Product (GDP) at current prices in 2021-22 is 14.5 per cent. The details of manufacturing share in GDP in the last eight years are at Annexure-1.
- (c): To  boost  manufacturing  sector  growth,  Government  has  undertaken various measures. These include introduction of Goods and Services Tax, reduction in Corporate tax, interventions to improve ease of doing business, measures for reduction in compliance burden, policy measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing Programme (PMP), FDI policy reforms, etc.

The  series  of  measures  taken  by  the  Government  to  improve  the economic situation and convert the disruption caused by COVID 19 into an opportunity for growth includes Atmanirbhar packages, introduction of Production Linked Incentive (PLI) Scheme across fourteen sectors to augment  the  manufacturing  capacity,  investment  opportunities  under National Infrastructure Pipeline (NIP) and National Monetisation Pipeline (NMP), soft launch of National Single Window System (NSWS), etc. An institutional mechanism to fast- track investments has been put in place, in  the  form  of  Project  Development  Cells  (PDCs)  in  all  concerned Ministries/ Departments of Government of India.

The Emergency Credit Line Guarantee Scheme (ECLGS), with provision of Rs 3 lakh crore which has now been increased to Rs. 5 lakh crore, is in  the  form  of  a  fully  guaranteed  emergency  credit  line  to  lending institutions.  Financial  support  has  been  given  to  the  stressed  Micro, Small & Medium Enterprises (MSME) with infusion of Rs.20,000 crore equity  support  through  Subordinate  Debt.  Fund  of  Funds  has  been created to infuse equity worth Rs.50,000 crore in the MSME Sector by setting up Rs.10,000 crore. Corpus Fund. Procurement from domestic companies  is being encouraged  by  disallowing global tender in government procurement tenders upto Rs 200 crore. In Union Budget 2023-24, an amount of Rs 9,000 crore infused in the corpus of revamped Credit Guarantee Scheme for Micro & Small Enterprises (MSE) will be effective from 1st April, 2023. This would enable additional collateral-free guaranteed credit of Rs 2 lakh crore.

Government has also focused on infrastructure development. PM Gati Shakti, NMP & Logistics Policy facilitate development of infrastructure and last mile connectivity to reduce the logistic cost and increase the efficiency of the economy. Capital investment outlay in the Budget has increased almost 3 times from Rs. 3.39 lakh crore in 2019-20 to Rs. 10 lakh crore in 2023-24. This will enable more industries to be set up.

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Annexure-I ANNEXURE REFERRED TO IN REPLY TO PARTS  (a) & (b)  OF  THE  LOK SABHA USTARRED QUESTION NO. 4825 FOR ANSWER ON 29.03.2023 Share of Manufacturing Sector in GDP at current prices

| Year    |
|---------|
| 2014-15 |
| 2015-16 |
| 2016-17 |
| 2017-18 |
| 2018-19 |
| 2019-20 |
| 2020-21 |
| 2021-22 |

Source: Ministry of Statistics & Programme Implementation

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