Rate of Industrial Growth
Rate of
Industrial Growth
The
rate of industrial growth, measured in terms of Index of Industrial Production
(IIP) increased by 4.0 per cent during April-September, 2015-16 as compared to
the growth of 2.9 per cent during the same period of previous year i.e.
2014-15. All the three industrial sectors viz. mining, manufacturing and
electricity have registered positive growth during April-September in the
current year.
The Government has taken a number of measures including administrative and regulatory, to accelerate the growth of industrial sector. For creation of conducive business environment, the Government is constantly simplifying and rationalizing the processes and the procedures for boosting investor sentiment, simplifying the policy and procedures for encouraging Foreign Direct Investment (FDI) and correcting the inverted duty structure.
Some of the recent initiatives also include pruning the list of industries that can be considered as defence industries requiring industrial license, two extensions of two years each permitted in the initial validity of three years of the industrial license to take it up to seven years, removal of stipulation of annual capacity in the industrial license, and deregulating the annual capacity for defence items for Industrial License. For defence projects validity of industrial licenses has been increased to 15 years, which can be further increased to 18 years.
With a view to liberalise and simplify the FDI policy, so as to provide ease of doing business in the country leading to larger FDI inflows, the Government has brought in FDI related reforms and liberalisation in a number of major sectors of the economy. Changes introduced in the policy include increase in sectoral limits, bringing more activities under automatic route and easing of conditionalities for foreign investments.
The Government has launched the e-biz Mission Mode Project under the National e-Governance Plan which has simplified procedures and as on date provides 29 G2B (Government to Business) services - 18 Central and 11 State/Municipal services, online. The Delhi Mumbai Industrial Corridor (DMIC) project is under implementation. In addition, the Government has conceptualized Amritsar Kolkata Industrial Corridor, Chennai-Bengaluru Industrial Corridor, Bengaluru Mumbai Economic Corridor and the Vizag-Chennai Industrial Corridor (as the first phase of an East Coast Economic Corridor), and setting up a National Industrial Corridor Development Authority (NICDA) for coordinating and overseeing progress of the various industrial corridors.
The Government has also launched “Make in India” programme with 25 thrust sectors to provide a major push to manufacturing in India. An Investor Facilitation Cell has been created viz ‘Invest India’ to assist, guide, handhold and facilitate investors during the various phases of business life cycle. This Cell provides necessary information on vast range of subjects; such as policies of the Ministries and State Governments, various incentive schemes and opportunities available, to make it easy for the investors to make necessary investment decision. Information on 25 thrust sectors has been put up on ‘Make in India’s web portal (http://www.makeinindia.com) along with details of FDI Policy, National Manufacturing Policy, Intellectual Property Rights and Delhi Mumbai Industrial Corridor and other National Industrial Corridors.
This information was given by the Minister of State(Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
*******
Inflow of
FDI in Railways and Insurance Sectors
FDI policy as contained in Consolidated FDI Policy
Circular 2014 on Insurance was revised vide Press Notes dated 02.03.2015. FDI
received in Insurance sector after the amendment of the policy and
corresponding figures of the preceding period is as under:
|
Sl. No.
|
Sector
|
Period
|
Amount
(in US$
million)
|
Percentage
change
|
|
1.
|
Insurance
|
March, 2015 to September, 2015
|
341.43
|
+152%
|
|
March, 2014 to September, 2014
|
135.30
|
|
Railway Infrastructure was opened to FDI vide Press Note dated
27.08.2014 and data on FDI inflows on this sector is not separately maintained.
Data is not maintained centrally for assessing the impact of FDI norms relaxation
on the employment generation, for a particular sector. However, FDI directly
supplements the domestic capital and brings technology and skill in the sectors
of direct entry. It has indirect multiplier effects on other related sectors
also thereby stimulating economic growth leading to increased production,
exports and employment generation.
Government plays an active role in investment promotion, through dissemination
of information on the investment climate and opportunities in India and by
advising prospective investors about investment policies and procedures and
opportunities. Further, FDI policy is reviewed on an ongoing basis, with a
view to making it more investor friendly. Significant changes are made in the
FDI policy regime, from time to time, to ensure that India remains an
increasingly attractive investment destination.
This information was given
by the Minister of State(Independent Charge) in the Ministry of Commerce &
Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
*******
100 Per Cent FDI
in Medical Devices
To
give impetus to the medical devices sector and for easing the norms the
Government vide Press Note 2 (2015 series) dated 21.01.2015 allowed 100% FDI
under the automatic route for brownfield projects of medical devices industry.
The measure undertaken would help in easing the process of foreign investment in this industry which, in turn, could result in increased manufacturing of medical devices in India.
Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities. FDI policy is reviewed on an ongoing basis andsignificant changes are made in the FDI policy regime from time to time, to ensure that India remains increasingly attractive and Investor-friendly.
This information was given by the Minister of State(Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
The measure undertaken would help in easing the process of foreign investment in this industry which, in turn, could result in increased manufacturing of medical devices in India.
Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities. FDI policy is reviewed on an ongoing basis andsignificant changes are made in the FDI policy regime from time to time, to ensure that India remains increasingly attractive and Investor-friendly.
This information was given by the Minister of State(Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
*******
FDI
Inflow
The amount of FDI inflow received during last year
(2014-15) is US$ 44.29 billion. It has increased by 29% & 22% in comparison
to financial year 2012-13 (US$ 34.29 billion) & 2013-14 (US$ 36.05 billion)
respectively.
FDI in various sectors is allowed
up to the different limits, varying from 20% to 100%, subject to prescribed
conditions. The detailed information is available in ‘Consolidated FDI Policy
Circular of 2015’ as amended time to time, at DIPP’s website (www.dipp.nic.in).
Sector-wise details of FDI equity
inflow for the last F.Y. 2014-15 and current F.Y. 2015-16 (upto September,
2015) are as below:
|
Sl No
|
Sector
|
2014-15
Apr-Mar |
2015-16
Apr-Sep |
Total
|
|
|
|
FDI
in US$ million |
FDI
in US$ million |
FDI
in US$ million |
|
1
|
METALLURGICAL INDUSTRIES
|
359.34
|
253.07
|
612.41
|
|
2
|
MINING
|
684.39
|
516.65
|
1,201.04
|
|
3
|
POWER
|
707.04
|
359.88
|
1,066.92
|
|
4
|
NON-CONVENTIONAL ENERGY
|
615.95
|
305.46
|
921.42
|
|
5
|
PETROLEUM & NATURAL GAS
|
1,079.02
|
47.10
|
1,126.12
|
|
6
|
BOILERS AND STEAM GENERATING PLANTS
|
1.33
|
26.08
|
27.41
|
|
7
|
PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS)
|
230.70
|
56.49
|
287.19
|
|
8
|
ELECTRICAL EQUIPMENTS
|
574.83
|
227.23
|
802.07
|
|
9
|
COMPUTER SOFTWARE & HARDWARE
|
2,296.04
|
3,056.83
|
5,352.87
|
|
10
|
ELECTRONICS
|
96.84
|
100.92
|
197.76
|
|
11
|
TELECOMMUNICATIONS
|
2,894.94
|
659.15
|
3,554.09
|
|
12
|
INFORMATION & BROADCASTING (INCLUDING PRINT
MEDIA)
|
254.96
|
309.21
|
564.17
|
|
13
|
AUTOMOBILE INDUSTRY
|
2,725.64
|
1,464.28
|
4,189.92
|
|
14
|
AIR TRANSPORT (INCLUDING AIR FREIGHT)
|
74.56
|
34.16
|
108.72
|
|
15
|
SEA TRANSPORT
|
333.22
|
278.16
|
611.38
|
|
16
|
PORTS
|
1.90
|
0.00
|
1.90
|
|
17
|
RAILWAY RELATED COMPONENTS
|
129.73
|
15.21
|
144.94
|
|
18
|
INDUSTRIAL MACHINERY
|
716.79
|
239.34
|
956.13
|
|
19
|
MACHINE TOOLS
|
24.06
|
17.98
|
42.04
|
|
20
|
AGRICULTURAL MACHINERY
|
72.35
|
5.41
|
77.76
|
|
21
|
EARTH-MOVING MACHINERY
|
30.11
|
69.15
|
99.26
|
|
22
|
MISCELLANEOUS MECHANICAL & ENGINEERING
INDUSTRIES
|
186.69
|
133.45
|
320.15
|
|
23
|
COMMERCIAL, OFFICE & HOUSEHOLD EQUIPMENTS
|
33.39
|
6.65
|
40.04
|
|
24
|
MEDICAL AND SURGICAL APPLIANCES
|
145.93
|
105.74
|
251.67
|
|
25
|
INDUSTRIAL INSTRUMENTS
|
0.85
|
7.03
|
7.88
|
|
26
|
SCIENTIFIC INSTRUMENTS
|
32.34
|
1.74
|
34.09
|
|
27
|
FERTILIZERS
|
225.32
|
0.10
|
225.42
|
|
28
|
CHEMICALS (OTHER THAN FERTILIZERS)
|
762.76
|
392.67
|
1,155.43
|
|
29
|
PHOTOGRAPHIC RAW FILM AND PAPER
|
0.75
|
0.00
|
0.75
|
|
30
|
DYE-STUFFS
|
54.89
|
3.32
|
58.21
|
|
31
|
DRUGS & PHARMACEUTICALS
|
1,497.74
|
225.91
|
1,723.64
|
|
32
|
TEXTILES (INCLUDING DYED,PRINTED)
|
197.42
|
148.72
|
346.14
|
|
33
|
PAPER AND PULP (INCLUDING PAPER PRODUCTS)
|
116.21
|
32.36
|
148.56
|
|
34
|
SUGAR
|
27.77
|
98.16
|
125.93
|
|
35
|
FERMENTATION INDUSTRIES
|
225.38
|
176.46
|
401.85
|
|
36
|
FOOD PROCESSING INDUSTRIES
|
515.86
|
238.68
|
754.54
|
|
37
|
VEGETABLE OILS AND VANASPATI
|
148.34
|
20.36
|
168.70
|
|
38
|
SOAPS, COSMETICS & TOILET PREPARATIONS
|
177.22
|
179.66
|
356.88
|
|
39
|
RUBBER GOODS
|
284.51
|
163.61
|
448.12
|
|
40
|
LEATHER,LEATHER GOODS AND PICKERS
|
34.21
|
8.22
|
42.43
|
|
41
|
GLUE AND GELATIN
|
21.44
|
0.01
|
21.45
|
|
42
|
GLASS
|
41.82
|
12.62
|
54.43
|
|
43
|
CERAMICS
|
35.29
|
26.77
|
62.06
|
|
44
|
CEMENT AND GYPSUM PRODUCTS
|
208.99
|
11.02
|
220.02
|
|
45
|
TIMBER PRODUCTS
|
8.97
|
22.31
|
31.28
|
|
46
|
DEFENCE INDUSTRIES
|
0.08
|
0.00
|
0.08
|
|
47
|
CONSULTANCY SERVICES
|
458.13
|
374.28
|
832.41
|
|
48
|
SERVICES SECTOR (Fin.,Banking,Insurance,Non
Fin/Business,Outsourcing,R&D,Courier,Tech. Testing and Analysis, Other)
|
4,443.26
|
1,463.74
|
5,907.00
|
|
49
|
HOSPITAL & DIAGNOSTIC CENTRES
|
567.85
|
357.09
|
924.94
|
|
50
|
EDUCATION
|
78.86
|
117.40
|
196.25
|
|
51
|
HOTEL & TOURISM
|
777.01
|
563.96
|
1,340.98
|
|
52
|
TRADING
|
2,727.96
|
2,307.99
|
5,035.95
|
|
53
|
RETAIL TRADING
|
168.72
|
69.55
|
238.27
|
|
54
|
AGRICULTURE SERVICES
|
59.95
|
28.54
|
88.50
|
|
55
|
DIAMOND,GOLD ORNAMENTS
|
280.18
|
37.36
|
317.55
|
|
56
|
TEA AND COFFEE (PROCESSING & WAREHOUSING COFFEE
& RUBBER)
|
1.43
|
1.11
|
2.53
|
|
57
|
PRINTING OF BOOKS (INCLUDING LITHO PRINTING
INDUSTRY)
|
72.58
|
54.23
|
126.81
|
|
58
|
COIR
|
1.36
|
0.00
|
1.36
|
|
59
|
CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES
|
870.25
|
977.43
|
1,847.68
|
|
60
|
CONSTRUCTION DEVELOPMENT: Townships, housing,
built-up infrastructure and construction-development projects
|
769.14
|
81.00
|
850.13
|
|
61
|
MISCELLANEOUS INDUSTRIES
|
765.88
|
140.41
|
906.29
|
|
|
Grand Total
|
30,930.50
|
16,631.43
|
47,561.93
|
FDI data is not maintained state
wise, but RBI regional office wise. FDI equity inflows recorded for a
particular regional office of RBI, may cover more than one state.
The Government of India has taken up a series of measures to improve Ease of
Doing Business. The emphasis has been on simplification and rationalization of
the existing rules and introduction of information technology to make
governance more efficient and effective.
This information was given by the Minister of
State(Independent Charge) in the Ministry of Commerce & Industry Smt.
Nirmala Sitharaman in a written reply in Rajya Sabha today.
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