Question : Growth of Manufacturing Sector

(a) whether the growth of the manufacturing sector is slow in the country, if so, the details thereof and the reasons therefor;

(b) whether All India Manufacturers'' Organisation (AIMO) has urged the Union Government to meet 50 per cent of its growth plan through the domestic industries, if so, the details thereof and the reaction of the Government thereto;

(c) the details of export/import and the number of employment generated in the manufacturing sector during each of the last three years and the current year; and

(d) the steps taken by the Government to promote the domestic manufacturing sector and make them globally competent?

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THE MINISTER OF STATE (INDEPENDENT CHARGE)
OF THE MINISTRY OF COMMERCE & INDUSTRY
(SHRIMATI NIRMALA SITHARAMAN)

(a): As per the National Accounts Statistics data compiled by Central Statistics Office, the Gross Value Added (GVA) for manufacturing sector grew at the rate of 9.3 percent in year 2015-16 over the year 2014-15. For the first quarter April-June (Q1) 2016-17, Quarterly GVA from ‘manufacturing’ sector grew by 9.1 percent as compared to growth of 7.3 percent in Q1 2015-16.

(b): There are press reports that All India Manufacturer’s Organisation(AIMO), through an open letter, has urged Government that at least 50% of needs of each Ministry in their growth plan for next 5 years must be given to local manufacturing industries. Government is actively pursuing measures to boost domestic manufacturing through initiatives like ‘Make in India’, ‘Startup India’, ‘Ease of Doing Business’ and liberalization of Foreign Direct Investment policy.

(c): The export/ import data is maintained commodity wise and consolidated figures are not maintained sector wise. The total number of persons engaged in the registered manufacturing sector as per the Annual Survey of Industries pertaining to the latest available three years 2011-12, 2012-13 and 2013-14 stands at 13.43 million persons, 12.95 million persons and 13.54 million persons respectively.

(d): Government has been taking steps to boost industrial production and growth. These inter-alia, include ‘Make in India’ initiative under which thrust sectors have been identified to provide a push to manufacturing in India, ‘Startup India’ initiative and ‘Ease of Doing Business’. Steps taken to improve ease of doing business include simplification and rationalisation of existing rules and introduction of information technology, setting up of an Investor Facilitation Cell, launch of e-biz Portal and liberalising policy for industrial license for defence industries. Foreign Direct Investment (FDI) policy and procedures have been simplified and liberalised progressively. Government has taken up a programme of building pentagon of industrial corridors across the country with an objective to provide developed land and quality infrastructure for development of industrial townships.

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