Question : Factory Output Growth

(a) whether the factory output growth falling to 57.6 percent in April 2020 has risen to 3.6 percent to 8
months high;
(b) if so, the details thereof;
(c) whether it is a fact that manufacturing, electricity, consumers durable and non-durable have shown
recovery after deep recession from March to October;
(d) if so, the details thereof;
(e) whether the Government proposes to give boost to manufacturing sector to put the economy on the rise;
and
(f) if so, the further steps taken or being taken by the Government in this regard?

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ANURAG SINGH THAKUR)

(a) & (b) According to the Index of Industrial Production released by National Statistical Office, Ministry of Statistics and Programme Implementation, the growth in industrial production was (-) 57.3 per cent in April-2020 which improved to 4.2 per cent in October-2020 and was (-) 1.9 per cent in November-2020.

(b) & (d) The growth in the manufacturing sector improved from (-) 22.8 per cent in March-2020 to 4.1 per cent in October-2020. The growth in electricity improved from (-) 8.2 per cent to 11.2 per cent in the same period. The consumer durables and consumer non-durables grew from (-) 36.8 per cent and (-) 22.3 per cent in March-2020 respectively to 18.0 per cent and 7.1 per cent in October-2020 respectively.

(e) and (f) The Government has taken several measures to boost the manufacturing sector which includes introduction of production linked incentives to create manufacturing global champions in 13 sectors, commercialization of the mineral sector, labour reforms, change in the definition of MSMEs, collateral free automatic loans for businesses and subordinate debt for stressed MSMEs. Further the National Infrastructure Pipeline, change in rules to enable enhanced public procurement from Indian companies and equity infusion through MSME fund of funds will also impact the manufacturing sector positively. The stimulus and reform package under the Atmanirbhar Bharat including measures taken by RBI is estimated to be about Rs. 27.1 lakh crores which amounts to more than 13% of GDP.
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