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 the rest of the world.
A statement of the growth of IIP, Index of Eight Core Industries & Manufacturing sector during the last five years is placed below:
|Growth of Index of Industrial Production(IIP), Index of Eight Core Industries (ICI) & Manufacturing Sector|
|Overall Growth of IIP||4.0||3.3||4.6||4.4||3.8|
|Overall Growth of Core Industries||4.9||3.0||4.8||4.3||4.4|
Source: 1) Source: National Statistical Office (NSO), 2) Office of Economic Adviser, DPIIT
The growth of the industrial sector is an interplay of several factors, like domestic demand, demand for exports, level of investment and prevailing prices. The Government has been continuously taking steps to boost industrial growth including the infrastructure sector which includes putting in place a policy framework to create a conducive business environment, strengthening infrastructure network and ensuring availability of required inputs. Foreign Direct Investment (FDI) policy and procedures have been simplified and liberalized progressively. The Government has also taken up a series of measures to improve Ease of Doing Business.
Recently, several short- term and long-term measures have been taken to boost investment, production and demand. The corporate tax rate has been slashed to 22% for domestic companies and 15% for new domestic manufacturing companies, drive has been initiated for GST refund to MSME within 30 days, ban has been lifted for purchase of new vehicles in ministries/ departments and tax benefits provided to boost the demand of vehicles. The Government has made the upfront capital release of Rs 70,000 crore to Public Sector Banks and has made additional provision for lending and liquidity of Rs 5 lakh crore to increase credit flow to industries. To bolster consumption/ demand, the banks have cut interest rates, a move that will lead to lower EMI for home, auto and other loans. To strengthen real estate sector, Alternate Investment Fund has been established to provide last mile funding for completion of stalled projects under affordable and middle-income housing category. Reform momentum towards self- certification, labour laws, environment clearance will boost investment and production.
Following are the sector specific measures 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 among others include trade measures like anti-dumping duties, safeguard duties and notified Quality Control Order thereby making BIS standards mandatory for all steel products and imports. The Government has notified the policy on Domestically Manufactured Iron & Steel Products in government procurements which facilitates domestic value addition and 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 and 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) and Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya in 2017). 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.
Petroleum and Natural Gas: Government has taken several steps to enhance exploration & production of oil and gas in the country which include, Policy for Relaxations, Extensions and Clarifications under Production Sharing Contract (PSC) regime for early monetization of hydrocarbon discoveries, Discovered Small Field Policy, Hydrocarbon Exploration and Licensing Policy, Policy for Extension of Production Sharing Contracts, Policy for early monetization of Coal Bed Methane, Setting up of National Data Repository, Appraisal of Unapprised areas in Sedimentary Basins, Re-assessment of Hydrocarbon Resources, Policy framework to streamline the working of Production Sharing Contracts in Pre-NELP and NELP Blocks, Policy to Promote and Incentivize Enhanced Recovery Methods for Oil and Gas, Policy framework for exploration and exploitation of Unconventional Hydrocarbons under existing Production Sharing Contracts, Coal Bed Methane contracts and Nomination fields.
This information was given by the Minister of Commerce and Industry, Piyush Goyal, in a written reply in the Rajya Sabha.