By TIOL News Service

NEW DELHI, JULY 19, 2014: AS per National Accounts Statistics, the contribution of manufacturing in GDP is about 15 percent while similar information for capital goods and consumer goods is not separately maintained. What is also not maintained separately is the export / import data as per industrial classification.

Interestingly, the Index of Industrial Production (IIP) published by the Central Statistical Office (CSO) does not provide information on industrial performance of States/UTs.

The industrial growth, measured in terms of IIP, has declined during the last three years from 2.9 % in 2011-12 to 1.1 % in 2012-13 and further to (-) 0.1 % in 2013-14.  The reasons for the decline in industrial growth in recent years are moderation in domestic demand, inflationary pressures, increase in input costs and slowdown in economies of other parts of the world etc.

The Government reviews the industrial performance on a regular basis. The Government is also aware of surveys, reports and reviews conducted by various organisations analysing the causes of shrinkage in industrial growth.

As per the 12 th Five Year Plan document of Planning Commission, the average annual growth rate of industry is envisaged at 7.6 % during 2012-13 to 2016-17. The sector-wise details of growth rates are given in Table-2 at Annexure.

Apart from the measures taken by the Government in the recent past to revive the industrial growth including announcement of National Manufacturing Policy (NMP) in 2011, simplification and rationalization of the Foreign Direct Investment (FDI) Policy, implementation of Delhi Mumbai Industrial Corridor (DMIC) project, conceptualization of Amritsar-Kolkata Industrial Corridor, Chennai-Bengaluru Industrial Corridor, Bengaluru-Mumbai Economic Corridor and East Coast Economic Corridor, launching of the e-biz Mission Mode Project under the National e-Governance Plan, taking proactive steps for ease of doing business by taking stock of best practices across states and endorsing them, identifying and simplifying the approval procedures etc., the Union Budget 2014-15 presented on 10 th July, 2014 in the Parliament has also announced a number of measures to revive the industrial growth in the country.

The measures outlined in the Union Budget include increasing composite caps of foreign investment in Defence and Insurance sectors to 49%, easing norms of built up area and capital conditions for FDI for development of smart cities, capital investment of more than Rs 2 lakh crore by Public Sector Undertakings, incentives for Real Estate Investment Trusts and Infrastructure Investment Trusts to attract long term finance from foreign and domestic sources, raising scope and period of investment allowance to industry and correction of inverted duty structure in manufacturing products etc.

Table 1: Industrial Growth Rates as per the Index of Industrial Production (IIP) (in percent)                                                                                                        

Annexure

Table 2: Average Annual Growth Targets of Industry by Sector at Constant (2004-05) Prices in 12th Five Year Plan (in percent)

The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry, Ms. Nirmala Sitharaman in a written reply in Lok Sabha on Friday.