The Government is continuously taking measures to improve the performance of the manufacturing sector of the country. Some such measures taken include announcement of National Manufacturing Policy (NMP), 2011, simplification and rationalization of the Foreign Direct Investment (FDI) Policy, implementation of Delhi Mumbai Industrial Corridor (DMIC) project, launching of the e-biz Mission Mode Project under the National e-Governance Plan, and creating a joint venture ‘Invest India’ in association with FICCI. Besides, incentives are given for helping industries in difficult areas through Plan Schemes of Transport Subsidy, special package of incentives for Special Category States, North-East Industrial & Investment Promotion Policy, 2007, and specific programmes like Industrial Infrastructure Upgradation Scheme, Indian Leather Development Programmes etc.

The Index of Industrial Production (IIP) reflects movements in production of manufacturing, mining and electricity. While the policy measures taken by the Government are facilitating in nature, the movements in the IIP are caused by inherent supply and demand factors that affect industrial production. During the last two years, the IIP (Base 2004-2005) increased from 170.3 in 2011-12 to 172.2 in 2012-13.

Some of the additional measures that have been considered necessary by the Government for facilitating increase in industrial production include creating a project monitoring cell for stalled infrastructural and industrial projects with high investment, and approving commencement of preparatory work on creating Chennai-Bengaluru Industrial Corridor (CBIC), Bengaluru-Mumbai Economic Corridor (BMEC) and Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC).

The information was given by the Minister of State in the Ministry of Commerce & Industry, Dr. E M Sudarsana Natchiappan, in a written reply in the Rajya Sabha.

Manufacturing policy measures bolster industrial growth via FDI rationalisation, infrastructure corridors and project monitoring, and incentives. Policy measures combine regulatory reforms and infrastructure initiatives to boost manufacturing: adoption of the National Manufacturing Policy, rationalisation of the FDI Policy, the e-biz Mission Mode Project, and targeted incentive schemes for difficult regions and sectors. Complementary steps include major industrial corridors (Delhi-Mumbai and proposed Chennai-Bengaluru, Bengaluru-Mumbai, Amritsar-Delhi-Kolkata) and establishment of a project monitoring cell to address stalled high-investment projects, with the Index of Industrial Production cited as the output indicator.