Question : Industrial Production

(a) whether the Government acknowledges that India has been placed at 30th rank in the readiness for the future of production report and if so, the details thereof;

(b) the details of the current manufacturing sector contribution to the India’s GDP along with the rate of growth of the same during the last three years;

(c) the details of the positive impact associated with the ranking which the India is going to have in this sector in the upcoming years;

(d) whether the Government has also conducted any survey so as to determine what impact does the newly introduced reforms such as GST and ‘Make in India’ initiative had on the commerce and industry of the country and if so, the details thereof and the reasons therefor; and

(e) the steps taken/proposed to be taken by the Government to increase the existing industrial production in the country?

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI C.R. CHAUDHARY)

(a): As per the ‘Readiness for the Future of Production Report 2018’ released by the World Economic Forum, India has been ranked in 30th position out of the 100 countries and economies in terms of structure of production.

(b): As per the latest release of 1st revised estimates of National Income for the year 2016-17 by the Central Statistics Office (CSO), the details of the manufacturing sector’s contribution to the India’s GDP along with the rate of growth during the last three years are given in the Table below :
<pre>

Share and growth rate of manufacturing sector in Gross Value Added (GVA) (in per cent) (base year 2011-12)
Year 2014-15* 2015-16# 2016-17 @
Share (at current prices) 16.3 16.8 16.8
Growth rate (at constant prices) 7.9 12.8 7.9
*:Third Revised Estimates (New Series);
#:Second Revised Estimates;
@:First Revised Estimates;

Source: Central Statistics Office.

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(c): The report ranks India in the top five in terms of demand environment and also acknowledges that the Government has made significant push to improve key enablers and move towards a more connected economy.

(d) & (e): The Government has not conducted any specific survey to determine the impacts of newly introduced reforms such as GST and Make in India. However, the Government has been continuously reviewing the performance of all new initiatives taken by it. Further, the Government is continuously taking steps to boost growth in the industry which inter alia includes putting in place policy framework to create conducive business environment, strengthening infrastructure network and ensuring availability of required inputs. Make in India initiative aims to make India a hub for manufacturing, design and innovation. It focusses on infrastructure, simplified processes, job creation, skill development and fostering innovation in select thrust sectors. This initiative is based on four pillars of New Processes, New Infrastructure, New Sectors and New Mindset, which have been identified to give boost not only in manufacturing but also in other sectors. The Government has undertaken Foreign Direct Investment policy reforms in 21 sectors covering 87 areas. In addition to the opening up of new sectors and enhancement of caps for existing sectors various conditionalities for foreign investments have also been simplified. The Government has also taken up a series of measures to improve Ease of Doing Business. The emphasis has been on simplification and rationalization of the existing rules and introduction of information technology to make governance more efficient and effective.

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