Lok Sabha Question No. 1293 (UNSTARRED), answered on 2016-05-02
Subject: Performance of Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: RAM KUMAR SHARMA KUSHWAHA, OM PRAKASH YADAV, SUMEDHANAND SARASWATI, HUKUM SINGH

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1293. TO BE ANSWERED ON MONDAY, THE 2 ND  MAY, 2016.

## PERFORMANCE OF MANUFACTURING SECTOR

## 1293.  SHRI RAM KUMAR SHARMA:

SHRI OM PRAKASH YADAV: SHRI SUMEDHANAND SARSWATI: SHRI HUKUM SINGH:

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

## वाणिज् यवव द्यग ं ्री

- (a) the total production in manufacturing sector from April, 2014 to December, 2015 month-wise including its value in terms of rupees and the percentage of the said production consumed in the country;
- (b) the details of sectors/cities identified  to  be  developed  as  investment centres to promote industrial activities and make India a manufacturing hub along with the facilities  extended  to  foreign  and  domestic  investors  in  this  regard  and  the expected employment generation therefrom;
- (c) whether the growth prospects for the manufacturing sector have dimmed and the India Manufacturing Barometer has shown a smaller number of companies being optimistic about higher margins; and
- (d) if  so,  the details thereof along with the steps taken or proposed to be taken by the  Government  to  boost  the  manufacturing  sector  and  make  India  a  global manufacturing hub?

## 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 latest annual figure for production of registered manufacturing sector is available  for  the  year  2013-14  and  month  wise  figures  are  not maintained. According to Annual Survey of Industries, the Gross Value of Output (GVO) was Rs. 65.55 Lakh Crores in 2013-14. The monthly growth rates of Index of Industrial Production (IIP) for Manufacturing  sector,  with

## Index of Industrial Production (Base Year 2004-05=100) Manufacturing Sector

| Month   |   Growth Rate ( over the corresponding month of previous year) |
|---------|----------------------------------------------------------------|
| Apr'14  |                                                            3   |
| May'14  |                                                            5.9 |
| Jun'14  |                                                            2.9 |
| Jul'14  |                                                           -0.3 |
| Aug'14  |                                                           -1.1 |
| Sep'14  |                                                            2.7 |
| Oct'14  |                                                           -5.6 |
| Nov'14  |                                                            4.7 |
| Dec'14  |                                                            4.1 |
| Jan'15  |                                                            3.4 |
| Feb'15  |                                                            5.1 |
| Mar'15  |                                                            2.7 |
| Apr'15  |                                                            3.9 |
| May'15  |                                                            2.1 |
| Jun'15  |                                                            5.2 |
| Jul'15  |                                                            4.8 |
| Aug'15  |                                                            6.6 |
| Sep'15  |                                                            2.7 |
| Oct'15  |                                                           10.6 |
| Nov'15  |                                                           -4.6 |
| Dec'15* |                                                           -2.2 |

## * The data for Dec'15 is provisional

- (b) & (d): The Government is continuously taking a  number of measures to boost manufacturing  sector  in  India.  These,  inter-alia,  include  Startup  India initiative  as  well  as  '  Make  in  India'  programme  under  which  22  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 conceptualised.

National  Investment  and  Manufacturing  Zones  (NIMZs)  are  impartment instrumentalities of the National Manufacturing Policy (NMP). Government has approved Eight Investment Regions along the Delhi Mumbai Industrial Corridor  (DMIC)  project  as  NIMZs.  Both  Domestic  as  well  as  foreign investors  can  participate  in  various  tender  packages  being  issued  by DMICDC and can also set up a manufacturing base in these cities. The details are as under:

## Industrial Corridor Nodes : DMIC

- i. Ahmedabad-Dholera Investment Region, Gujarat  ( Expected employment on completion : 8,00,000)
- ii. Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh ( Expected employment on completion : 4,50,000)
- iii. Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra ( Expected employment on completion : 7,50,000)
- iv. Dighi Port Industrial Area, Maharashtra  ( Expected employment on completion : 3,20,000)
- v. Manesar-Bawal Investment Region, Haryana ( Expected employment on completion : 16,00,000)
- vi. Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan ( Expected employment on completion : 5,50,000)
- vii.  Jodhpur-Pali-Marwar Region in Rajasthan ( Expected employment on completion : 3,20,000)
- viii.  Dadri-Noida-Ghaziabad Investment Region, Uttar Pradesh( Expected employment on completion : 12,00,000)

## Other Early Bird Projects :

- i. Integrated Industrial Township in Greater Noida( Expected employment on completion : 1,74,270)
- ii. Integrated Industrial Township ' Vikram Udyogpuri' project( Expected employment on completion : 78,000)

## Other Corridors

Three  nodes  namely  Tumkur  in  Karnataka,  Ponneri  in  Tamil  Nadu  and Krishnapatnam  in  Andhra  Pradesh  under  Chennai  Bengaluru  Industrial Corridor  (CBIC)  and  one  node  Dharwar  in  Karnataka  under  Bengaluru Mumbai Economic Corridor (BMEC) have also been identified.

## Fourteen NIMZs outside the DMIC region have also been identified:

- i. Nagpur in Maharashtra
- ii. Prakasam in Andhra Pradesh
- iii. Chittoor in Andhra Pradesh
- iv. Medak in Telangana
- v. Hyderabad Pharma NIMZ at Rangareddy and Mahabubnagar Districts in Telangana.
- vi. Tumkur in Karnataka
- vii. Kolar in Karnataka
- viii. Bidar in Karnataka
- ix. Gulbarga in Karnataka
- x. Kalinganagar, Jajpur District in Odisha
- xi. Ramanathapuram District of Tamil Nadu
- xii. Ponneri Taluk, Thiruvallur District, Tamil Nadu
- xiii. Auraiya District in Uttar Pradesh and
- xiv. Jhansi District in Uttar Pradesh

The 22 identified sectors under the 'Make in India' initiative are , viz, (i) Automobiles & Auto Components, (ii) Aviation, (iii) Aerospace & Defence, (iv)  Basic  Metals  &  Cement,  (v)  Biotechnology,  (vi)  Chemicals  and Petrochemicals  (vii)  Food  Processing  (viii)  Gems  &  Jewellery,  (ix)  ICTE Manufacturing, (x) Leather and Leather Products, (xi) Media and Entertainment,  (xii)  MSME,  (xiii)  Oil  &  Gas,  (xiv)  Pharmaceuticals,  (xv) Power, (xvi) Ports and Shipping, (xvii) Railways, (xviii) Renewable Energy, (xix) Roads and Highways, (xx) Skill Development, (xxi) Textiles & Apparel and (xxii) Tourism.

- (c): The  survey  conducted  by  FICCI  and  PwC  Strategy&-  namely  India Manufacturing Barometer indicates that 58% of the surveyed respondents are somewhat optimistic and 24% are very optimistic about the prospects of  the  Indian  Economy  for  the  coming  year.  The  interview  period  of  the survey was 1 November 2015 to 10 January 2016. Further, as per India Manufacturing Barometer, PwC's 19 th Annual Global CEO Survey showed that 75% of Indian CEOs believe that there are more growth opportunities for their company today than three years ago.

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