Lok Sabha Question No. 1316 (UNSTARRED), answered on 2016-07-25
Subject: Growth in Industrial Production
Ministry: COMMERCE AND INDUSTRY
Asked by: BRIJBHUSHAN SHARAN SINGH

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1316. TO BE ANSWERED ON MONDAY, THE 25 TH  JULY, 2016.

## GROWTH IN INDUSTRIAL PRODUCTION

## 1316.  SHRI BRIJBHUSHAN SHARAN SINGH:

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

## वाणिज् यवव द्यग ं ्री

- (a) the  reasons  for  low  growth  in  the  index  of  Industrial  Production  (IIP)  in  the month of may against the highest growth of 8.5 percent registered in April;
- (b) the names of the 8 major industries in the country where the growth rate was 2.8 per cent along with the action plan formulated by the government to help these Industries; and
- (c) whether it is a fact that the production of fertilizer saw an impressive growth of 14.8  per  cent  which  indicates  that  the  condition  of  other  sectors  was  much worse and if so, the details thereof?

## 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): The  industrial production is  measured  in terms of Index of Industrial Production  (IIP)  released  by  Central  Statistics  Office  (CSO)  at  the  base  of year  2004-05.  The  growth  rate  of  IIP  in  April,  2016  was  (-)  1.3  %  which improved to a growth of 1.2 % in May, 2016.
- (b): The Index of Eight Core Industries (ICI) measures performance of eight core industries, which includes Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement & Electricity and is compiled at the base of year 2004-05. The growth rate of ICI during May, 2016 was 2.8 %.

The  Government  is  continuously  taking  steps  to  boost  growth  in  these industries. 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.

- (c): The growth rate of Fertilizer during May, 2016 was 14.8 % and growth rates in other  core  industries  were  lower  than  the  growth  rate  of  Fertilizer.  Industry wise detail of the growth rates are given in the table below:

Growth Rate of Core Industries (in %)

| Industry          |   May, 2016 |
|-------------------|-------------|
| Coal              |         5.5 |
| Crude Oil         |        -3.3 |
| Natural Gas       |        -6.9 |
| Refinery Products |         1.2 |
| Fertilizers       |        14.8 |
| Steel             |         3.2 |
| Cement            |         2.4 |
| Electricity       |         4.6 |
| Overall Index     |         2.8 |

Source: Office of the Economic Adviser, DIPP.

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