Press Information Bureau
Government of India
Ministry of Commerce & Industry

30-November-2011 12:07 IST

There has been a moderation in the growth of industrial production since June, 2011 as may be seen from the table given below:-

(in percent)

The reasons for moderation in industrial growth, among others include moderation in the rate of growth of consumption expenditure, under performance of the construction sector, hardening of interest rates resulting in increase in the cost of capital and global economic uncertainty.  However, it is not possible to assess as to what extent each of these factors have individually contributed to a moderation in industrial growth.

Government has taken a number of initiatives to revive the industrial climate and growth which includes promotion and facilitation industrial investment including foreign direct investment, improvement in business environment, development of industrial and other infrastructure through public-private initiatives, development of industry relevant  skills etc.  Government in November, 2011 also announced a National Manufacturing Policy, which aims at bringing down compliance burden of industry through self regulation and help industry to become globally competitive.    The ultimate objective of the policy is for enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs.

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

DS/GK

Industrial growth moderation: policy measures and a national manufacturing policy aimed at revitalising investment and competitiveness. Moderation in industrial output has been observed from June 2011, with declines and decelerations across key sectors and an overall slowdown in the index of industrial production. Identified contributory factors include weaker consumption expenditure, underperformance in construction, higher interest rates increasing the cost of capital, and global economic uncertainty, without quantification of each factor's contribution. The Government has promoted industrial investment, improved business environment measures, infrastructure development via public-private initiatives, and skills development, and announced the National Manufacturing Policy to reduce compliance burden and enhance manufacturing's share of GDP and employment.