Lok Sabha Question No. 1282 (UNSTARRED), answered on 2025-02-11
Subject: Contribution of Manufacturing Sector in GDP
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. Kalanidhi Veeraswamy

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

## LOK SABHA

UNSTARRED QUESTION NO. 1282.

TO BE ANSWERED ON TUESDAY, THE 11 TH  FEBRUARY, 2025.

## CONTRIBUTION OF MANUFACTURING SECTOR IN GDP

## 1282.  DR. KALANIDHI VEERASWAMY:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the details of the contribution of the manufacturing sector to country's Gross Domestic Product (GDP) during the last ten years, year-wise;
- (b) whether the Government is satisfied with the growth of manufacturing sector and if so, the details thereof;
- (c) the details of the manner in which the Government justify the declining share of manufacturing in GDP;
- (d) whether the Government has taken any steps to address the challenges being faced the manufacturing sector such as lack of infrastructure, low investment, and labour issues; and
- (e) the  steps taken to ensure that the sector becomes a key driver of inclusive growth and economic development in the next decade?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

(a) to (c): As per the National Accounts Statistics released by Ministry of Statistics and Programme  Implementation  (MoSPI),  details of the contribution of the manufacturing sector to country's Gross Value Added (GVA) during the last ten years, year-wise are as follows:

Year-wise share of manufacturing sector in GVA at constant (2011-12) prices

| Year          |   %Share of Manufacturing in GVA |
|---------------|----------------------------------|
| 2013-14       |                             17.2 |
| 2014-15       |                             17.3 |
| 2015-16       |                             18.1 |
| 2016-17       |                             18.1 |
| 2017-18       |                             18.4 |
| 2018-19       |                             18.3 |
| 2019-20       |                             17.1 |
| 2020-21       |                             18.4 |
| 2021-22       |                             18.5 |
| 2022-23 (FRE) |                             16.9 |
| 2023-24 (PE)  |                             17.3 |

FRE- First Revised Estimates, PE- Provisional Estimates

Manufacturing sector in the country has experienced growth in the last decade. As  per  the  National  Accounts  Statistics  released  by  MoSPI,  manufacturing sector's Gross Value Added (GVA) at constant prices increased from ₹15.6 lakh crore in 2013-14 to ₹27.5 lakh crore in 2023-24 (PE). Further, the share of the manufacturing sector as a percentage of total GVA at constant prices increased from 17.2% in 2013-14 to 17.3% in 2023-24.

- (d) & (e): The  Government  has  taken  several  measures  to  promote  the  growth  of manufacturing sector prioritizing infrastructure development, increased investments and a strengthened labour market. These efforts aim to ensure the sector 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 and 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 with an outlay of Rs. 1.97 lakh crore. 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. Actual  investment  of  ₹  1.48  lakh  crore  have  been  realized  till October 2024 across 14 sectors, which has resulted in incremental production/sales of over  ₹13.13  lakh  crore  and  employment  generation  of  over  9.7  lakh.  PLI Schemes have witnessed exports surpassing ₹4.5 lakh crore with significant contributions  from  sectors  such  as  electronics,  pharmaceuticals,  and  food processing.

The Government of India has approved 12 new project proposals under the National  Industrial  Corridor  Development  Programme  (NICDP)  with  total project cost of ₹28,602 crore (incl. land cost). The objective of the programme 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 multimodal 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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