After a steep decline in March and April 2020,
the overall growth rate of production of eight core industries started showing
signs of recovery since May 2020. In a written reply on Wednesday in the Lok Sabha, the lower house of the Parliament, Som Parkash, Minister of State for Commerce and Industry, shared sector-wise and month-wise details of
growth rate in the eight core industries since November 2019.
The production of eight core industries has
been adversely affected by the Covid-19 pandemic and associated disruptions in
demand and supply of goods and services.
Some of the demand side factors responsible for drop in production are
decline in private final consumption expenditure and gross fixed capital expenditure,
uncertainty in business sentiments, etc. The imposition of nationwide lockdown
to contain the outbreak of Covid-19 pandemic was a major supply side factor
responsible for drop in the core sector growth.
Some of the steps taken by the Government to
ensure growth in core sector and to promote domestic industry are as follows:
·
Government is promoting Public Procurement,
National Infrastructure Pipeline and Production Linked Incentive Schemes to
boost domestic production.
·
Government has also announced Aatmanirbhar
Package of Rs 29.87 trillion (15% of GDP) with bold reforms in number of
sectors.
·
Announcement of structural reforms such as
deregulation of the agricultural sector, change in definition of MSMEs,
commercialisation of coal mining, higher FDI limits in defence and space
sector, development of Industrial Land or Land Bank and Industrial Information
System, revamp of Viability Gap Funding scheme for social infrastructure, new
power tariff policy.
·
Incentivising States to undertake sector
reforms as part of the Aatmanirbhar Package.
·
Regulatory and compliance measures such as
postponing tax-filing and other compliance deadlines, reduction in penalty
interest rate for overdue GST filings, change in government procurement rules,
faster clearing of MSME dues, IBC related relaxations for MSMEs have been taken
to boost the industry.
To facilitate investment in the country,
Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) have
been set up in Ministries or Departments.
To contain surge in imports of non-essential commodities,
corrective steps such as increase in basic customs duty or through other
non-tariff measures like issue of Quality Control Orders have been taken. One
District One Product Scheme has also been launched to realise the true
potential of a district.
Growth rate (in %) of production of eight core industries (year-on-year)
Months and Years
|
Overall
Growth rate
|
Coal
|
Crude
Oil
|
Natural
Gas
|
Petroleum
Refinery Products
|
Fertilizers
|
Steel
|
Cement
|
Electricity
|
Weight (%)
|
|
10.33
|
8.98
|
6.88
|
28.04
|
2.63
|
17.92
|
5.37
|
19.85
|
November, 2019
|
0.7
|
-3.5
|
-6.0
|
-6.4
|
3.1
|
13.6
|
7.0
|
4.3
|
-4.9
|
December, 2019
|
3.1
|
6.1
|
-7.4
|
-9.2
|
3.0
|
10.2
|
8.7
|
5.5
|
0.0
|
January, 2020
|
2.2
|
8.0
|
-5.3
|
-9.0
|
1.9
|
-0.1
|
1.6
|
5.1
|
3.2
|
February, 2020
|
6.4
|
11.3
|
-6.4
|
-9.6
|
7.4
|
2.9
|
2.9
|
7.8
|
11.5
|
March, 2020
|
-8.6
|
4.0
|
-5.5
|
-15.1
|
-0.5
|
-11.9
|
-21.9
|
-25.1
|
-8.2
|
April, 2020
|
-37.9
|
-15.5
|
-6.4
|
-19.9
|
-24.2
|
-4.5
|
-82.8
|
-85.2
|
-22.9
|
May, 2020
|
-21.4
|
-14.0
|
-7.1
|
-16.8
|
-21.3
|
7.5
|
-40.4
|
-21.4
|
-14.8
|
June, 2020
|
-12.4
|
-15.5
|
-6.0
|
-12.0
|
-8.9
|
4.2
|
-23.2
|
-6.8
|
-10.0
|
July, 2020
|
-7.6
|
-5.7
|
-4.9
|
-10.2
|
-13.9
|
6.9
|
-6.5
|
-13.5
|
-2.4
|
August, 2020
|
-6.9
|
3.6
|
-6.3
|
-9.5
|
-19.1
|
7.3
|
0.5
|
-14.5
|
-1.8
|
September, 2020
|
0.6
|
21.0
|
-6.0
|
-10.6
|
-9.5
|
-0.3
|
6.2
|
-3.4
|
4.8
|
October, 2020*
|
-0.9
|
11.7
|
-6.2
|
-8.6
|
-17.0
|
6.3
|
4.0
|
3.2
|
11.2
|
November, 2020*
|
-1.4
|
3.3
|
-4.9
|
-9.3
|
-4.8
|
1.6
|
-0.5
|
-7.3
|
3.5
|
December, 2020*
|
-1.3
|
2.2
|
-3.6
|
-7.2
|
-2.8
|
-2.9
|
-2.7
|
-9.7
|
4.2
|
2016-17 (April-March)
|
4.8
|
3.2
|
-2.5
|
-1.0
|
4.9
|
0.2
|
10.7
|
-1.2
|
5.8
|
2017-18 (April-March)
|
4.3
|
2.6
|
-0.9
|
2.9
|
4.6
|
0.03
|
5.6
|
6.3
|
5.3
|
2018-19 (April-March)
|
4.4
|
7.4
|
-4.1
|
0.8
|
3.1
|
0.3
|
5.1
|
13.3
|
5.2
|
2019-20 (April-March)
|
0.4
|
-0.4
|
-5.9
|
-5.6
|
0.2
|
2.7
|
3.4
|
-0.9
|
0.9
|
2020-21 (April-March)*
|
-10.1
|
-1.9
|
-5.7
|
-11.6
|
-13.5
|
3.0
|
-16.7
|
-18.3
|
-3.7
|
Image Source
Written from a government news release.