Lok Sabha Question No. 1794 (UNSTARRED), answered on 2025-03-10
Subject: Plan to Increase GDP and Employment Rate
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Rajesh Ranjan

## GOVERNMENT OF INDIA

## MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. 1794

ANSWERED ON 10.03.2025

## PLAN TO INCREASE GDP AND EMPLOYMENT RATE

† 1794.     SHRI RAJESH RANJAN:

Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to state:

- (a) whether the contribution of the manufacturing sector in GDP was 14.97% in the year 2014-15, whereas during the year 2023-24 its contribution to GDP was only 14.27% under the Make in India scheme and if so, the reasons therefor; and
- (b) whether the Government has any plan to increase the GDP and employment rate in the manufacturing sector and if so, the details thereof?

## ANSWER

THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  IN  THE  MINISTRY  OF  SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI JAYANT CHAUDHARY)

(a)  &  (b):  As  per  the  National  Accounts  Statistics  released  by  Ministry  of  Statistics  and Programme Implementation  (MoSPI),  the  Gross  Value  Added  (GVA)  at  constant  prices  of manufacturing sector has increased from Rs 16.83 lakh crore in 2013-14 to Rs 28.25 lakh crore in 2023-24 (first revised estimate). The share of the manufacturing GVA in overall GVA at constant prices increased from 17.3% in 2014-15 to 17.5% in 2023-24.

To increase the contribution of manufacturing in overall output and employment, the Government  of  India  has  taken  several  measures  prioritizing  infrastructure  development, increased investments and a strengthened labour market. These efforts aim to ensure that manufacturing serves as a key driver of inclusive growth and economic development. 'Make in  India'  initiative  has  been  launched  to  make  India  a  hub  for  manufacturing,  design,  and innovation.  Presently,  'Make  in  India'  focuses  on  27  sectors  including  15  manufacturing sectors, implemented across various Ministries/Departments and State  Governments. Further,  keeping  in  view  India's  vision  of  becoming  'Aatmanirbhar'  and  to  enhance  India's manufacturing  capabilities  and  exports,  Production  Linked  Incentive  (PLI)  schemes  have been launched for 14 key sectors. These include mobile and specified electronic components,  drug  intermediaries  &  active  pharmaceutical  ingredients,  medical  devices, automobiles  and  auto  components,  pharmaceuticals  drugs,  specialty  steel,  telecom  & networking  products,  electronic/technology  products,  white  goods  (ACs  and  LEDs),  food products, textile products, high efficiency solar PV modules, advanced chemistry cell (ACC) battery, and  drones  and drone components.  These  schemes  have  the  potential of significantly  boosting  production, increasing manufacturing output and contributing to faster economic growth in future.

Government of India  has approved 12  new project proposals under the National Industrial Corridor  Development  Programme  (NICDP),  objective  of  which  is  to  expand  the  industrial output,  increase  employment opportunities,  provide better living  and  social  facilities for  the new and growing workforce by way of providing 'plug n play' infrastructure at the plot level and to facilitate the manufacturing investments into the country by providing quality, reliable, sustainable and resilient infrastructure for the industries.

The  other  major  initiatives  include  Start-up  India,  National  Single  Window  System,  GIS enabled Land Bank, Foreign Direct Investment (FDI) policy reforms, PM Gati Shakti National Master Plan for integrated planning of multi- modal infrastructure, Project Monitoring Group to remove  bottlenecks  in  setting  up  of  major  infrastructure  projects,  setting  up  of  industrial parks, interventions to improve ease of doing business, measures for reduction in compliance burden, rationalization of labour laws, introduction of Goods and Services Tax, reduction in the  corporate  tax  rate,  policy  measures  to  boost  domestic  manufacturing  through  public procurement orders, Phased Manufacturing Programme (PMP) and Quality Control Orders (QCOs), to name major ones.

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