GROWTH RATE OF CORE SECTOR

The growth rate of Core Sector in the country increased by 3.4% (provisional) in November 2021 compared to November, 2020. Overall growth rate of core sector for April-Dec 2021 is 12.6%.

The Core Sector comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP), thus, it has an impact on the Index of Industrial Production. 

Government has undertaken a number of measures to boost industrial infrastructure.  PM Gati Shakti, a National Master Plan has been launched for multi-modal connectivity, bringing 16 Ministries including Railways and Roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects.  Additionally, other measures adopted include National Infrastructure Pipeline (NIP), National Monetization Pipeline (NMP), India Industrial Land Bank (IILB), Industrial Park Rating System (IPRS), soft launch of the National Single Window System (NSWS).  Besides, measures taken to promote industrial sector include announcement of Production Linked Incentive (PLI) Scheme for 14 Key Sectors, introduction of Goods and Services Tax, reduction in Corporate tax rates to 15%, enactment of four labour codes, improving ease of doing business, efforts to reduce compliance burden, FDI policy reforms, policy measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing Programme (PMP), etc.

In Union Budget 2022-23, financial outlay of ₹ 7.50 lakh crore has been allocated for capital expenditure by the Central government, which is 35.4% higher as compared to allocation in previous year. Total effective capital expenditure for 2022-23 is ₹ 10.68 lakh crore i.e., nearly 4.1% of GDP.

Economic Survey 2021-22 also estimated India’s GDP to grow by 9.2 per cent in 2021-22.  Manufacturing is estimated to grow by 12.5 per cent in 2021-22. 

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Lok Sabha today.