(a) whether there is a slow down in manufacturing sector;
(b) if so, the reasons therefor; and
(c) the details of steps being taken to remedy the situation?
(a) whether there is a slow down in manufacturing sector;
(b) if so, the reasons therefor; and
(c) the details of steps being taken to remedy the situation?
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI MUNI LALL)
(a) & (b): After attaining a peak growth of 14.1% in 1995-96,
manufacturing sector has shown a declining trend with the exception of
1999-2000 when a better growth rate of 7.1% was registered. Slackening
of demand, competition from competing imports, infrastructure
bottlenecks, poor technology, high interest rate and inherent
adjustment lags in industrial restructuring are the main reasons behind
this slowdown.
(c): The Government has taken steps for providing greater freedom in
investment decisions keeping in view the objectives of efficiency and
competitiveness, technological upgradation, maximization of capacity
utilization and increased exports. Measures such as tax holidays for
infrastructure sector, 100% FDI through automatic route,
rationalization of excise and custom duties have also been announced in
the Union Budget for 2001-2002.