Lok Sabha Question No. 2429 (UNSTARRED), answered on 2016-05-09
Subject: Industrial Production
Ministry: COMMERCE AND INDUSTRY
Asked by: PREM DAS RAI, LALLU SINGH, HARISH CHANDRA MEENA, R. GOPALAKRISHNAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 2429. TO BE ANSWERED ON MONDAY, THE 9 TH  MAY, 2016.

## INDUSTRIAL PRODUCTION

2429.  SHRI PREM DAS RAI:

SHRI LALLU SINGH:

SHRI HARISH MEENA:

SHRI R. GOPALAKRISHNAN:

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

## वाणिज् यवव द्यग ं ्री

- (a) the details of industrial production in the country during the last three years and sector and year-wise;
- (b) whether  there  has  been  a  decline  in  the  industrial  production/industrial  growth during the said period and if so, the details thereof, sector-wise including capital goods and manufacturing sectors along with the reasons therefor;
- (c) whether the water scarcity in different parts of the country has severely affected the industrial production of the country;
- (d) if  so,  the  details  thereof  along  with  the  action  taken  by  the  Government  in  this regard; and
- (e) the  remedial  steps  taken  or  being  taken  by  the  Government  to  increase  the industrial production?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a) & (b): The  industrial  production  in  the  country  is  measured  in  terms  of  Index  of Industrial Production (IIP) released by Central Statistics Office (CSO) at the base  2004-05.  The  details  of  the  growth  rates  of  IIP  during  the  last  three years, year-wise and sector wise including capital goods and manufacturing sector, is given in the Table at Annexure.

The reasons for the decline in industrial growth in recent past are, inter-alia, moderation  in  domestic  demand,  inflationary  pressures,  increase  in  input costs and slowdown in economies of other parts of the world. However, the growth  rate  in  IIP,  including  capital  goods  and  manufacturing  sector,  had improved in 2014-15.

- (c) & (d): No such study has been conducted to assess the impact of water scarcity on the industrial production in the country. However, the Government is aware of  water  stress  in  many  parts  of  the  country.  The  Government  has  taken several steps to augment water storage and manage ground water level in the country. Central Ground Water Authority (CGWA) constituted under 'The Environment (Protection) Act, 1986' for the purpose of regulation and control of  ground  water  development  and  management  has  issued  advisory  to States  /  Union  Territories  and  Ministry  of  Urban  Development  to  take necessary measures for adopting rain water harvesting / artificial recharge in all  the  Government  buildings.  Besides,  30  States  /  UTs  have  made  rain water harvesting mandatory by enacting laws / formulating rules & regulations /  by  including  provisions  in  building  bye-laws  /  through  suitable Government  Orders,  etc.  Central  Ground  Water  Board  (CGWB)  has  also been  organizing  mass  awareness  programmes  in  the  country  to  promote water  harvesting.  As  per  the  Schedule-I  of  the  Mahatma  Gandhi  National Rural  Employment  Guarantee  Act  (MGNREGA),  water  conservation  and water  harvesting  structures  constitute  a  special  focus  area  for  MGNREGA works.
- (e): The  Government  is  continuously  taking  a  number  of  measures  to  boost industrial production. These inter-alia, include Startup India initiative as well as  'Make  in  India'  programme  under  which  25  thrust  sectors  to  provide  a major push to manufacturing in India have been identified. The steps taken to create ease of doing business include setting up of an Investor Facilitation Cell,  launch  of  e-biz  Portal  and  liberalising  policy  for  industrial  license  for defence industries. The Foreign Direct Investment (FDI) policy and procedures have been simplified and liberalised progressively. For creation of  state-of-art  infrastructure,  Government  is  implementing  Delhi  Mumbai Industrial  Corridor  (DMIC)  project.  In  addition,  a  number  of  other  industrial corridor projects have been conceptualized.

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ANNEXURE ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  &  (b)  OF  LOK  SABHA UNSTARRED QUESTION NO. 2429 FOR ANSWER ON 09.05.2016.

Table: Growth Rates of the Index of Industrial Production (IIP) (in percent)

|                             |                          | Annual                   | Annual                   | Annual                   |
|-----------------------------|--------------------------|--------------------------|--------------------------|--------------------------|
| Groups                      | Weights                  | 2012- 13                 | 2013- 14                 | 2014-15                  |
| Sectoral classification     | Sectoral classification  | Sectoral classification  | Sectoral classification  | Sectoral classification  |
| Mining                      | 141.57                   | -2.3                     | -0.6                     | 1.5                      |
| Manufacturing               | 755.27                   | 1.3                      | -0.8                     | 2.3                      |
| Electricity                 | 103.16                   | 4.0                      | 6.1                      | 8.4                      |
| Use-based classification    | Use-based classification | Use-based classification | Use-based classification | Use-based classification |
| Basic goods                 | 456.82                   | 2.5                      | 2.1                      | 7.0                      |
| Capital goods               | 88.25                    | -6.0                     | -3.6                     | 6.4                      |
| Intermediate goods          | 156.86                   | 1.6                      | 3.1                      | 1.7                      |
| Consumer goods              | 298.07                   | 2.4                      | -2.8                     | -3.4                     |
| i) Consumer Durables        | 84.60                    | 2.0                      | -12.2                    | -12.6                    |
| ii) Consumer Non - Durables | 213.47                   | 2.8                      | 4.8                      | 2.8                      |
| Overall IIP                 | 1000.00                  | 1.1                      | -0.1                     | 2.8                      |

Source: Central Statistics Office (CSO).

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