'Growth of manufacturing sector increasing over the past three years': Govt
The growth of the manufacturing sector as measured by the Index of Industrial Production (IIP) with the base year 2011-12, has been consistently increasing over the past three years and the current year, according to the Ministry of Commerce & Industry in a written reply in the Lok Sabha.
The growth rate (in percent) of the manufacturing sector, as per IIP in 2015-16 was 2.8, in 2016-17 it was 4.4, 2017-18 it was 4.6, and in 2018-19 April-October, provisional has been 5.6, according to the Central Statistics Office.
The Make in India initiative was launched in 2014, which aims at promoting India as an important investment destination and a global hub in manufacturing, design, and innovation. This initiative also aims to create a conducive environment for investment, development of modern, and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between the government and industry through a positive mindset.
With the objective to create an assured domestic demand for manufacturers who are genuinely making in India, an enabling provision to promote domestic value addition in public procurement has been made by issuing the Public Procurement (Preference to Make in India) Order 2017 (amended on 28.05.2018).
Overall, the performance of the manufacturing sector is an interplay of several factors like domestic demand, demand for exports, level of investment, and prevailing prices. Several steps to boost domestic manufacturing are being taken as part of schemes such as Startup India, Ease of Doing Business, Modified Industrial Infrastructure Upgradation Scheme, Business Reform Action Plan, and Intellectual Property Rights (IPR) Policy.
Further, Foreign Direct Investment (FDI) policy and procedures have been simplified and liberalised progressively. The government has notified North East Industrial Development scheme (NEIDS) to continue benefits for the industrial units in the Northeastern region and Industrial Development Schemes for J&K, Himachal Pradesh, and Uttarakhand.
The scheme for budgetary support to the eligible units located in the states of J&K, Himachal Pradesh, Northeastern states, including Sikkim under GST regime has also been notified.
(Source: PIB)