THE MINISTER OF COMMERCE & INDUSTRY
(SHRI PIYUSH GOYAL)
(a) to (d): A statement is laid on the Table of the House.
*******
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF THE LOK SABHA STARRED QUESTION No. 139 FOR ANSWER ON WEDNESDAY, THE 10TH FEBRUARY, 2021.
(a) to (c): Department for Promotion of Industry and Internal Trade releases every month an Index of Eight Core Industries (ICI). This is a production volume index and measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
After a decline in the first half of financial year 2020-21 due to Covid-19, the overall growth rate of production of eight core industries started showing signs of recovery during October to December 2020. The annual and half yearly (H1 and H2) growth rate in the eight core industries since 2012-13 and the Production data for eight core industries since June 2020 are at Annex.
(d): Industrial growth depends on a number of factors including structural, external, fiscal and industrial factors. The sudden outbreak of COVID-19 had severely impacted some of the major economies of the world, including India, USA, European Union, UK and Japan. In India too, various sectors were affected due to the nation-wide lockdown. However, after the lockdown was relaxed, improvement has been witnessed in several sectors of the economy.
The Government has implemented several major reforms in recent years to boost industrial production and GDP growth. It has enacted the Insolvency and Bankruptcy Code (IBC) and recapitalized the banks. The other prominent measures include Goods and Services Tax (GST) to simplify the indirect taxation regime, Make-in-India programme to boost domestic manufacturing capacity, liberalization of Foreign Direct Investment (FDI) and Jan Dhan-Aadhaar-Mobile (JAM) Trinity towards greater transparency, efficiency and financial inclusion. In September, 2019 the corporate tax rate was reduced to 15 per cent for new domestic manufacturing companies, which is amongst the lowest in the world. In December 2019, the government announced Rs.103 lakh crore National Infrastructure Pipeline which would significantly boost infrastructure and spur growth impulses in the economy.
The Union Budget 2021-22 has announced a number of growth supporting measures which, inter-alia, include hike in custom duty to benefit Make in India, critical measures to boost infrastructure, innovation and R&D, and “Minimum Government and Maximum Governance”.
Government has announced a special economic and comprehensive package of Rs. 27.1 lakh crores - equivalent to 13 per cent of India’s GDP– to combat the impact of the COVID-19 pandemic in India. The package includes, among others, in-kind and cash transfer relief measures for households, employment provision measures under Pradhan Mantri Garib Kalyan Rojgar Abhiyaan and increased allocation under MGNREGS, credit guarantee and equity infusion-based relief measures for MSMEs and NBFCs and regulatory and compliance measures related to tax-filing, IBC and procurement. Structural reforms have also been announced as part of the Atmanirbhar Bharat Package which, inter alia, include deregulation of the agricultural sector, change in definition of MSMEs, new PSU policy, commercialization of coal mining, higher FDI limits in defence and space sector, development of Industrial Land/ Land Bank and Industrial Information System, revamp of Viability Gap Funding Scheme for social infrastructure, new power tariff policy and incentivizing States to undertake sectoral reforms. The implementation of the package is reviewed and monitored regularly.
*******
ANNEXURE
ANNEXURE REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 139 FOR ANSWER ON 10.02.2021.
Table 1: Overall Growth rate of production of Eight Core Industries$ (in %)
Year Growth rates of Index of Eight Core Industries
H1 H2 Annual
2012-13 4.1 3.6 3.8
2013-14 3.0 2.1 2.6
2014-15 5.5 4.6 4.9
2015-16 2.1 3.8 3.0
2016-17 5.4 4.2 4.8
2017-18 3.2 5.3 4.3
2018-19 5.5 3.3 4.4
2019-20 1.3 -0.3 0.4
2020-21* -14.3 -1.2#
* Provisional # indicates quarterly growth rate (Oct-Dec 2020)
$ Eight Core Industries includes Coal, Crude Oil, Natural Gas, Petroleum Refinery, Fertilizers, Steel, Cement & Electricity.
Table 2: Production data of Eight Core Industries since June 2020
Months/Years Coal (in Million Tonnes) Crude Oil (in Thousand Tonnes) Natural Gas (in Million cubic meters) Petroleum Refinery Products $ (in Thousand Tonnes) Fertilizers (in Thousand Tonnes) Steel (in Thousand Tonnes) Cement (in Thousand Tonnes) Electricity Generation (in Million KWH)
Weight (%) 10.3335 8.9833 6.8768 28.0376 2.6276 17.9166 5.3720 19.8530
Jun-2020 48.0 2527.0 2250.3 18724.8 3701.9 7713.0 26358.0 114164.2
Jul-2020 46.1 2633.6 2369.5 19386.9 3859.2 8953.0 24247.0 121541.8
Aug-2020 45.1 2577.5 2363.5 17936.8 3902.5 9504.0 20871.0 118898.9
Sep-2020 48.5 2486.5 2227.7 18000.8 3669.4 9454.0 24244.0 121585.0
Oct-2020* 56.3 2567.7 2347.8 18876.5 3968.4 9807.0 27030.0 118515.6
Nov-2020* 63.4 2486.0 2263.0 21425.5 3829.2 9721.0 25256.0 105853.2
Dec-2020* 71.8 2555.7 2354.7 21480.3 3779.7 10140.0 27492.0 114369.6
* Provisional
********
Download PDF Files
