Question : INDUSTRIAL MANUFACTURING GROWTH



(a) whether the contribution of manufacturing sector for calculating the Gross Domestic Product (GDP) has come down in the last ten years;

(b) if so, the details thereof alongwith the contribution made by other sector to the GDP during this period;

(c) whether the Government proposes to formulate the manufacturing policy/ Manufacturing Zone specifically for those traditional industries which have potential for maximum generation of employment;

(d) if so, the details thereof;

(e) whether the global slowdown has adversely affected several industries ; and

(f) if so, the details thereof alongwith the sector-wise growth rate including core sector during the current year vis-à-vis last year?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY(SHRI JYOTIRADITYA M. SCINDIA)

(a) & (b): The contribution of manufacturing sector to the Gross Domestic Product has increased from 14.8 percent in 1999-2000 to 15.6 percent in 2009-2010.Contribution of other sectors to the Gross Domestic Product in 1999-2000 and 2009-2010 is given below.

Sectoral contribution to Gross Domestic Product at current prices


(in Percent) Sector 1999-2000 2009-2010 (A.E.)

Agriculture, Forestry & Fishing 25.0 17.0
Mining & Quarrying 2.3 2.4
Manufacturing 14.8 15.6
Electricity, Gas & Water Supply 2.5 1.6
Construction 5.7 8.6
Trade, Hotels, Transport 21.7 24.1 & Communication
Financing ,Insurance,real estate 13.1 16.2 & business services
Community,social & personal services 14.9 14.6
GDP at factor cost 100.0 100.0

A.E. – Advanced Estimates
Source : Central Statistical Organization

(c) & (d): The Government has decided to formulate a National Manufacturing Policy to accelerate industrial growth. No specific industries have been identified for coverage under the proposed Manufacturing policy/ Manufacturing zone.

(e) & (f): The global recession affected some of the export oriented industries in India, such as textiles, handicrafts, leather, and gems and jewellery. Slowdown in the demand for automobiles and its ancillaries, steel etc. was also seen.Industry- wise quarterly growth rates during the current year vis-à-vis last year are as follows:

Rate of Growth of Industries (per cent)

2008-09 2009-10 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Food Products -7.1 7.6 0.6 -25.2 -17.2 -5.2 -0.6
Beverage,tobacco & Products 30.7 9.8 12.2 12.5 -6.2 2.1 0.7
Cotton Textiles 3.6 -3.2 -3.4 -4.4 -1.7 4.3 7.5
Wool, Silk and Man made 7.3 -8.9 1.3 0.5 4.8 21.2 11.7 fibre textile
Jute and other vegetable -8.1 -2.9 -23.3 -6.3 -16.2 -18.3 -10.4 fiber textiles
Textile Products 6.3 4.0 3.8 8.7 8.2 11.0 10.2
Wood & Wood Products.& -11.9 -0.5 -10.0 -16.3 14.6 1.3 11.0 furniture & fixture
Paper & Paper Products 1.3 7.7 1.3 -2.8 3.6 -0.6 3.8
Leather & fur Products 5.8 -8.8 -10.5 -13.0 -3.5 4.9 1.1
Basic Chem.& chemical products 11.2 1.2 -4.6 8.8 2.0 13.8 21.8
Rubber, plastic, petroleum and -3.5 -4.5 -0.9 2.7 10.6 14.3 18.4 coal products
Non-metallic mineral 1.0 0.1 1.9 1.7 8.3 4.9 6.3
Basic metals & alloy industries 4.9 8.4 5.0 -2.0 7.7 2.6 3.4
Metal Products & Parts 2.0 1.8 -0.4 -16.8 -4.8 4.9 15.6
Machinery and equipment 7.9 12.3 4.7 10.3 7.2 15.0 24.7
Transport Equipment & parts 10.3 13.9 -10.9 -1.5 6.9 12.0 43.6
Other Manufacturing Industries -9.5 6.5 5.6 -2.7 14.9 12.3 1.6
Total Manufacturing 5.8 4.9 0.5 0.3 3.4 9.2 14.3

Source: Central Statistical Organization
The growth of Core sector measured by the index of six core industries namely; crude oil, petroleum refinery products, coal, electricity, cement and steel was 5.4 per cent (Provisional) during April - January, 2009-10 as against 3.0 per cent during the corresponding period of the previous year i.e. April - January, 2008-09.