Question : Growth of Manufacturing Sector

(a) the growth of manufacturing sector in the country during the last three years, year and category-wise;

(b) whether the Government has introduced any schemes to incentivize the manufacturing sector and if so, the details thereof;

(c) whether the Government has any estimation of the total number of workforce dependent on the manufacturing sector of the country and if so, the details thereof;

(d) whether the Government has taken any initiatives for skill training of the workers of manufacturing sector in the country; and

(e) if so, the details thereof and the response received by the Government in this regard?

Answer given by the minister

THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES
(SHRI ARJUN RAM MEGHWAL)

(a) to (e): The Department for Promotion of Industry and Internal Trade has informed that the Government has implemented major reforms in the last one year to boost domestic manufacturing, industrial production and GDP growth. Production-Linked Incentive (PLI) Schemes in 13 key sectors, under the aegis of AatmaNirbhar Bharat, have been announced for enhancing India’s manufacturing capabilities and exports. The PLI Schemes for medical devices; mobile phones; electronic components; pharmaceutical drugs; telecom and network equipment; and electronic technology products have been notified. An Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) have been set up in the Ministries/Departments to facilitate and promote investment. A Single Window System involving clearances by Ministries /Departments and selected State Governments is on the anvil to provide end-to-end facilitation support. In the Union Budget 2021-22 with a view to promote domestic manufacturing, announcements have been made on setting up seven Mega Investment Textiles Parks(MITRA) over the next 3 years with plug-and-play facilities, rationalization of customs duty structure across sectors and for a Scrappage Policy to phase out old and unfit commercial vehicles. The National Infrastructure Pipeline is expected to significantly boost infrastructure and spur growth impulses in the economy. Reduction in the compliance burden is an ongoing process to spur investment and enhance the ease of doing business in India.





To boost domestic manufacturing various measures like amendments of Public Procurement Rules to enhance minimum local content; setting up of Fund of Funds, Seed Fund, Credit Guarantee Schemes to build up a strong eco-system for nurturing Innovation and Startups; development of Industrial Land/ Land Bank and Industrial Information System have been taken; creating world class infrastructure through developing nodes across various Industrial Corridors; formulation of National Master Plan on multimodal connectivity infrastructure; Industrial development schemes for the North-East States, Union Territory of J &K and Union Territory of Ladakh, for the States of Himachal Pradesh & Uttarakhand have been in force to boost industrialization in the NE and the hilly States.
The annual growth rate (YoY in %) of the Manufacturing sector during last 3 years is as follows:
Overall growth of Manufacturing Sector 2017-18 2018-19 2019-20
4.6 3.9 -1.4

As regards initiatives for skill training of workforce of the manufacturing sector, the Ministry of Skill Development and Entrepreneurship (MSDE) has informed that over 20 Central Ministries/ Departments including MSDE which are involved in the implementation of over 40 skill development schemes for meeting the needs of various sectors of the economy including the manufacturing sector. MSDE is implementing the following schemes viz. Pradhan MantriKaushalVikasYojana (PMKVY) and National Apprenticeship Promotion Scheme (NAPS) for short-duration skill training; and Craftsmen Training Scheme (CTS) through the Industrial Training Institutes (ITIs) and Crafts Instructor Training Scheme (CITS) through 33 National Skill Training Institutes (NSTIs) for long-term training.

Short-term training : Under PMKVY, short-duration training is provided through three routes, namely Short-Term Training (STT) for fresh skilling of school / college drop outs and unemployed youth; Recognition of Prior Learning (RPL) to recognize the existing skills through orientation; and Special Projects to address skilling requirements of the vulnerable groups. From 2016-17 to 2020-21 (up to 19.01.2021), 106.96 lakh candidates have been trained across all three formats in job roles pertaining to various sectors including 31.93 lakh candidates trained in the manufacturing sector. During this period, 18.95 lakh candidates from STT and Special Projects training routes have been reported placed in various sectors including 5.34 lakh candidates in manufacturing sector jobs. RPL orients candidates and does not mandate placements.

In addition, under the fee-based market-led model of the National Skill Development Corporation, 24,025 trainings and 7,973 placements have been done in manufacturing since inception of this model in 2014-15.

Under NAPS, the number of candidates trained since 2016-17 for various job roles including manufacturing sector job roles is 9.60 lakh. This scheme does not have placement as a criteria.

Long-term training: Under CTS, the number of candidates trained since 2016-17 for various job roles in 137 trades including manufacturing sector job roles is 52.98 lakh. This scheme does not have placement as a criteria.

Under CITS, the number of persons who have received skill training during the last ten years and 2020-21 is 2.36 lakh. After completion of CITS training, the trained individuals can be employed as Crafts Instructor in ITIs in their corresponding trades/ sectors and can also join the industry as Technicians.
*****

Download PDF Files