Lok Sabha Question No. 1822 (UNSTARRED), answered on 2023-12-13
Subject: Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: P. Velusamy, S.R. Parthiban

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

## LOK SABHA

UNSTARRED QUESTION NO. 1822. TO BE ANSWERED ON WEDNESDAY, THE 13 TH  DECEMBER, 2023.

## MANUFACTURING SECTOR

## 1822.  SHRI VELUSAMY P.: SHRI PARTHIBAN S.R.:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government is aware of the stagnation in the manufacturing sector over the past two decades, especially in Tamil Nadu;
- (b) if so, the reasons therefor;
- (c) the details of jobs created/curtailed in the manufacturing sector over the past decade and the average wage-rate of workers in this sector;
- (d) whether  the  Government  is  considering  to  take  any  step  to  address  such stagnation and boost the economy and job creation; and
- (e) if so, the details thereof?

## 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): Manufacturing  sector  in  the  country  experienced  expansion  in  the  last  two decades by recording Rs. 26.17 lakh crore of Gross Value Added (GVA) at constant prices in 2022-23 against Rs. 7.38 lakh crore in 2003-04 as per the National  Accounts  Statistics.  The  state  of  Tamil  Nadu  witnessed  a  rise  in manufacturing GVA at constant prices from about Rs 0.21 lakh crores in 200304 to Rs 3.2 lakh crores in 2022-23. The details are given at Annexure I.
- (c): The total number of workers and average daily wage (per man-day worked) in the organized manufacturing sector from 2013-14 onwards, as compiled by the Labour  Bureau  based  on  the  Annual  Survey  of  Industries  data,  is  given  at Annexure II.
- (d) & (e): Government of India has taken several initiatives to boost economic growth and employment generation in the country. These include launching of 'Make in India' initiative to boost manufacturing, 'Start-up India' to build an ecosystem for nurturing innovation, Insolvency and Bankruptcy Code (IBC) to de-stress the

banking sector and provide an orderly exit route for enterprises, rationalization of labour laws to increase employment, and reduction in the corporate tax rate to boost private investment. Introduction of the Goods and Services Tax (GST) has improved the growth momentum in the economy by reducing barriers to trade, business, and related economic activities. Other major initiatives include: Atmanirbhar Bharat packages, introduction of Production  Linked  Incentive  (PLI)  Scheme,  investment  opportunities  under National  Infrastructure  Pipeline  (NIP)  and  National  Monetisation  Pipeline (NMP), India Industrial Land Bank (IILB), Industrial Park Rating System (IPRS), launch  of  the  National  Single  Window  System  (NSWS),  development  of National Industrial Corridors; investor friendly FDI policy, wherein most of the sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route. Also, PM Gatishakti was launched for integrated planning of infrastructure and synchronized project implementation across all concerned Central Ministries/ Departments and State Governments, and Emergency Credit Line Guarantee Scheme  (ECLGS)  was  extended  to  provide  continued  support  to  MSMEs, among others. The National Logistics Policy was launched to lower the cost of logistics and bring it on par with developed countries. Financial inclusion and banking services were deepened to reach the last mile. Additional initiatives include a special package for the textile industry, regional connectivity measures for the air transport sector, and power sector schemes, including Ujjwal DISCOM Assurance Yojana (UDAY). The Government of India is  also  implementing  various  projects  involving  substantial  investment  and public expenditure like Prime Minister's Employment Generation Programme (PMEGP), Pradhan Mantri Mudra Yojana (PMMY), Pradhan Mantri Vishwakarma Scheme, Mahatma Gandhi National Rural Employment Guarantee  Scheme  (MGNREGS),  Pt.  Deen  Dayal  Upadhyaya  Grameen Kaushalya  Yojana  (DDU-GKY)  and  Deen  Dayal  Antodaya  Yojana-National Urban  Livelihoods  Mission  (DAY-NULM)  etc.  for  employment  generation. Further,  the  Ministry  of  Skill  Development  and  Entrepreneurship  (MSDE)  is implementing  the  National  Apprenticeship  Promotion  Scheme  (NAPS)  and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to enhance the employability of youth across the country.

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 1822 FOR ANSWER ON 13.12.2023.

Gross Value Added (GVA) at constant prices of Manufacturing sector during the last two decades

| Year    | GVA of Manufacturing sector at constant prices (Rs. Crore)   | GVA of Manufacturing sector at constant prices (Rs. Crore)   | GVA of Manufacturing sector at constant prices (Rs. Crore)   |
|---------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
|         | All-India                                                    | All-India                                                    | Tamil Nadu                                                   |
| 2003-04 | 738764                                                       | 20974                                                        |                                                              |
| 2004-05 | 793308                                                       |                                                              | 43433                                                        |
| 2005-06 | 867475                                                       | 49994                                                        |                                                              |
| 2006-07 | 1021780                                                      |                                                              | 59369                                                        |
| 2007-08 | 1093106                                                      |                                                              | 59719                                                        |
| 2008-09 | 1144085                                                      |                                                              | 58934                                                        |
| 2009-10 | 1269564                                                      |                                                              | 76134                                                        |
| 2010-11 | 1367258                                                      |                                                              | 85508                                                        |
| 2011-12 | 1409986                                                      |                                                              | 151768                                                       |
| 2012-13 | 1486873                                                      |                                                              | 169456                                                       |
| 2013-14 | 1560709                                                      |                                                              | 166329                                                       |
| 2014-15 | 1683938                                                      |                                                              | 162092                                                       |
| 2015-16 | 1903850                                                      |                                                              | 199706                                                       |
| 2016-17 | 2054764                                                      |                                                              | 224514                                                       |
| 2017-18 | 2209428                                                      |                                                              | 248985                                                       |
| 2018-19 | 2328992                                                      |                                                              | 269681                                                       |
| 2019-20 | 2259706                                                      |                                                              | 267973                                                       |
| 2020-21 | 2325438                                                      |                                                              | 264617                                                       |
| 2021-22 | 2582473                                                      |                                                              | 290399                                                       |
| 2022-23 | 2617059                                                      |                                                              | 320608                                                       |

Sources: National Accounts Statistics, Directorate of Economics & Statistics of Tamil Nadu

Note: The base years of GVA figures of Tamil Nadu for the years 2003-04 is 19992000, for 2004-05 to 2010-11 is 2004-05 and for 2011-12 to 2022-23 is 2011-12

ANNEXURE - II ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE LOK SABHA UNSTARRED QUESTION NO. 1822 FOR ANSWER ON 13.12.2023. Total number of workers and average daily wages (per man-day worked) in the organized Manufacturing Sector from 2013-14 to 2019-20

| Year    |   Total No. of Workers |   Wages/Salary per Mandays worked (in Rupees) |
|---------|------------------------|-----------------------------------------------|
| 2013-14 |               10444404 |                                        399.84 |
| 2014-15 |               10755288 |                                        430.6  |
| 2015-16 |               11136133 |                                        459.95 |
| 2016-17 |               11662947 |                                        487.63 |
| 2017-18 |               12224422 |                                        517.35 |
| 2018-19 |               12798588 |                                        552.29 |
| 2019-20 |               13058156 |                                        582.83 |

Source: Labour Bureau

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