Lok Sabha Question No. 3579 (UNSTARRED), answered on 2015-12-21
Subject: Industrial Growth
Ministry: COMMERCE AND INDUSTRY
Asked by: RAMESH BIDHURI, HARISH CHANDRA MEENA, ANANT KUMAR DATTATREYA HEGDE, PARAYAMPARANBIL KUTTAPPAN BIJU, SHIVAJI ADHALRAO PATIL, INNOCENT, Shrirang Appa Barne, R. GOPALAKRISHNAN

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

## LOK SABHA

UNSTARRED QUESTION NO. 3579.

TO BE ANSWERED ON MONDAY, THE 21 ST     DECEMBER, 2015.

## INDUSTRIAL GROWTH

3579.

SHRI RAMESH BIDHURI:

SHRI HARISH MEENA:

SHRI ANANTKUMAR HEGDE:

SHRI P.K. BIJU:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI INNOCENT:

SHRI SHRIRANG APPA BARNE:

SHRI R. GOPALAKRISHNAN:

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

## वाणिज् यवव द्यग ं ्री

- (a) the details of industrial growth/Index of Industrial Production (IIP) including the details of industrial sectors registering low/ negative growth rate along with the reasons therefor;
- (b) the concrete  steps  taken  by  the Government  to  recoup  the  industrial production/growth and to achieve the target fixed in this regard;
- (c) whether the Government proposes to provide incentives to industrial sector in various States of the country including Tamil  Nadu  to  remove/reduce unemployment and if so, the details thereof; and
- (d) whether the Government has worked out another stimulus package for labour intensive  sectors  and  if  so,  the  details  thereof  along  with  the  impact  of  the previous stimulus packages?

## ANSWER

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

## (SHRIMATI NIRMALA SITHARAMAN)

(a) & (b): The rate of industrial growth, measured in terms of Index of Industrial Production (IIP) increased by 4.8 per cent during April-October, 201516 as compared to the growth of 2.2 per cent during the same period of previous year i.e. 2014-15. All the three industrial sectors viz. mining, manufacturing and electricity have registered positive growth of 2.0 %, 5.1 % and 5.2 % respectively, during April-October, 2015-16.

The  Government  has  taken  a  number  of  measures  to  increase industrial growth which, inter-alia, includes the launch of 'Make in India' programme  under  which  25  thrust  sectors  have  been  identified  to provide a major push to industrial sector in India. The steps taken to improve  ease  of  doing  business  include  setting  up  of  an  Investor

Facilitation Cell, launch of e-biz Mission Mode Project 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,  the  Government  has  conceptualized  Amritsar Kolkata Industrial Corridor, Chennai-Bengaluru  Industrial Corridor, Bengaluru Mumbai Economic Corridor and the Vizag-Chennai Industrial  Corridor  (as  the  first  phase  of  an  East  Coast  Economic Corridor),  and  setting  up  a  National  Industrial  Corridor  Development Authority  (NICDA)  for  coordinating  and  overseeing  progress  of  the various industrial corridors.

- (c): Incentives are given to North Eastern  States under North East Industrial  and  Investment  Promotion  Policy  (NEIIP)  and  Transport Subsidy Scheme (TSS)/Freight Subsidy Scheme (FSS). Incentives to the States of Jammu & Kashmir, Himachal Pradesh and Uttarakhand are given under Central Capital Investment Subsidy Scheme. Incentives  to  the  State  of  Jammu  &  Kashmir  are  also  given  under Central Interest Subsidy Scheme and Central Comprehensive Insurance Subsidy Scheme.

No  new  proposal  is  under  the  consideration  of  the  Government  to provide incentives to industrial sector in various States of the country including Tamil Nadu to remove/reduce unemployment.

- (d): The Government under section 80JJAA of the Income Tax Act provides tax incentives on additional employment in manufacturing. One of the objectives of the National Manufacturing Policy (NMP) within Make in India  programme  is  to  create  100  million  additional  jobs  by  2022  in manufacturing sector. The focus sectors of the policy include employment-intensive industries like textiles and garments, leather and footwear,  gems  and  jewellery  and  food  processing  industries.  The labour  intensive  sector  'small  &  medium  enterprises'  has  also  been identified as focus sector. The Government is implementing Integrated Development  of  Leather  Sector  (IDLS)  sub-scheme  as  part  of  the Indian Leather  Development  Plan  (ILDP),  which  has  significantly contributed  to  capacity  development  in  the  labour  intensive  leather sector.  Mega  Leather  Clusters  sub-scheme  of  ILDP  is  also  being implemented  to  boost  infrastructure  facility  and  support  services  for production and export.

Incentives  for  industries,  including  for  labour  intensive  industries  are provided by the sectoral Ministries/Departments under their respective programmes.  Sectoral  Ministries/Departments  in  the  Government  are also  implementing  various  schemes  and  programmes  and  taking measures for boosting industrial growth of respective sectors, e.g. for modernisation and technology upgradation with emphasis on powerloom  segment and  development  of  handlooms,  etc.  for  textiles and Mega Food Parks Scheme for food processing.

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