(a) whether the data released by the Government reveals low growth rate in core sectors and if so, the details thereof and the reaction of the Government thereto;
(b) the extent to which the core sector would impact the Index of Industrial Production; and
(c) if so, the details thereof and the measures taken by the Government to further boost the core sector growth?
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THE MINISTER OF COMMERCE & INDUSTRY
(SHRI PIYUSH GOYAL)
(a): As per the latest data available, the growth of core sectors as measured by the Index of Eight Core Industries (ICI), registered the growth rate of 1.3 per cent during April - September, 2019-20. Global growth is forecast at 3.0% for 2019, its lowest level since 2008-09 as per the World Economic Outlook of the IMF, October 2019. However, despite this global downturn, India continues to grow faster than rest of the world.
(b): The Eight Core Industries (ICI) comprises 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP) with the base year 2011-12.
(c): The Government is continuously taking steps to boost industrial growth including infrastructure sector which inter alia, includes putting in place a policy framework to create conducive business environment, strengthening infrastructure network and ensuring availability of required inputs. Foreign Direct Investment (FDI) policy and procedures have been simplified and liberalised progressively. The Government has also taken up a series of measures to improve Ease of Doing Business. Following sector specific measures have been taken by the Government to boost the core sector:
Steel- The Government has taken corrective steps to increase the domestic demand in steel sector which amongst others include trade measures such as anti dumping duties, safeguard duties and notified Quality Control Order thereby making BIS standards mandatory for all steel products and imports; notified the policy on Domestically Manufactured Iron & Steel Products in government procurements which facilitates domestic value addition; and notified National Steel Policy 2017 with a view to encourage long term growth of domestic steel sector.
Coal- The Government has come up with new methodology for auction of coal mines for sale of coal. The salient features of the methodology for auction of coal are no restriction on the sale and/or utilization of coal from the coal mine; coal can be exported; more flexibility in coal production schedule; FDI to the extent of 100% under automatic route is to be allowed in coal mining activities.
Electricity-Government has introduced various operational reforms to improve the power supply, system performance and financial health of the sector such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY in 2014), Integrated Power Development Scheme (IPDS in 2014), Ujwal Discom Assurance Yojana (UDAY in 2015), Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya in 2017), etc. For the promotion of Renewable Energy Government has fixed a cumulative target of addition of 175 GW Renewable Energy based electric installed capacity by 2022 with an objective to promote cleaner and sustainable energy.
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