Press Information Bureau

Government of India

Ministry of Commerce & Industry

07-September-2011 14:35 IST

Production Growth Rate

Industrial growth measured in terms of index of Industrial Production (IIP) improved from 2.5% in 2008-09 to 5.3% in 2009-10 and further to 8.2% in 2010-11. In the first quarter of current year, the growth moderated to 6.8% compared to a growth of 9.6% in the first quarter of the previous year. The moderation in the growth in the first quarter was largely on account of a moderation of growth in the mining sector. Consumer durables and intermediates within the manufacturing sector also witnessed moderation in growth. Hardening of interest rates to some extent affected the growth in these segments.

The major focus areas for improving the industrial climate during the 11th Plan have been the creation of world class infrastructure, promotion and facilitation of industrial investment including the foreign direct investment, improvement in business environment, and development of industry relevant skills. The Union Budget 2011-12 has clearly indicated that for sustained growth of GDP and productive employment for younger generation, it is imperative that the growth in manufacturing sector picks up. Government is considering a manufacturing policy, which will bring down the compliance burden on the industry through self-regulation and help make Indian industry globally competitive. This will improve the growth rates for manufacturing and industry.

This information was given by the Minister of State for Commerce and Industry Shri Jyotiraditya M. Scindia in a written reply to a question, in the Rajya Sabha today.

DS/gk

Manufacturing policy to reduce compliance through self-regulation aims to boost manufacturing growth and competitiveness for industry. The Government is considering a manufacturing policy intended to reduce the compliance burden on industry through self-regulation, with the objective of enhancing global competitiveness and improving manufacturing and overall industrial growth prospects; this measure is presented alongside 11th Plan priorities of infrastructure creation, facilitation of industrial investment including foreign direct investment, business environment improvements, and industry-relevant skills development.