Latest News
Home » Commerce and Industry » Growth Rate in Core Sectors

Growth Rate in Core Sectors

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.  The sector-wise and month-wise details of growth rate in the eight core industries since November 2019 are at Annex-I.

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.

Industrial growth depends on a number of factors including structural, external, fiscal and industrial factors. The sudden outbreak of COVID-19 has severely impacted some of the major economies of the world, viz. USA, European Union, UK and Japan. In India too, various sectors were affected due to the nation-wide lockdown. However, after the lockdown was relaxed, improvement has been witnessed in several sectors of the economy.

Some of the steps taken by the Government to ensure growth in core sector and to promote domestic industry are as follows:

  1. 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 lakh crores (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, commercialization of coal mining, higher FDI limits in defence and space sector, development of Industrial Land/ Land Bank and Industrial Information System, revamp of Viability Gap Funding scheme for social infrastructure, new power tariff policy and incentivizing States to undertake sector reforms as part of the Aatmanirbhar Package.
  2. 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, amongst others have been taken to boost the industry.
  3. To facilitate investment in the country, Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) have been set up in Ministries/Departments.
  4. 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 realize the true potential of a district.

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

ANNEXURE-I

ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE  LOK SABHA UNSTARRED QUESTION NO. 285 FOR ANSWER ON 3RD FEBRUARY, 2021.

Growth rate (in %) of production of Eight Core Industries (Year on Year basis)

Months/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
Nov-19 0.7 -3.5 -6.0 -6.4 3.1 13.6 7.0 4.3 -4.9
Dec-19 3.1 6.1 -7.4 -9.2 3.0 10.2 8.7 5.5 0.0
Jan-20 2.2 8.0 -5.3 -9.0 1.9 -0.1 1.6 5.1 3.2
Feb-20 6.4 11.3 -6.4 -9.6 7.4 2.9 2.9 7.8 11.5
Mar-20 -8.6 4.0 -5.5 -15.1 -0.5 -11.9 -21.9 -25.1 -8.2
Apr-20 -37.9 -15.5 -6.4 -19.9 -24.2 -4.5 -82.8 -85.2 -22.9
May-20 -21.4 -14.0 -7.1 -16.8 -21.3 7.5 -40.4 -21.4 -14.8
Jun-20 -12.4 -15.5 -6.0 -12.0 -8.9 4.2 -23.2 -6.8 -10.0
Jul-20 -7.6 -5.7 -4.9 -10.2 -13.9 6.9 -6.5 -13.5 -2.4
Aug-20 -6.9 3.6 -6.3 -9.5 -19.1 7.3 0.5 -14.5 -1.8
Sep-20 0.6 21.0 -6.0 -10.6 -9.5 -0.3 6.2 -3.4 4.8
Oct-20* -0.9 11.7 -6.2 -8.6 -17.0 6.3 4.0 3.2 11.2
Nov-20* -1.4 3.3 -4.9 -9.3 -4.8 1.6 -0.5 -7.3 3.5
Dec-20* -1.3 2.2 -3.6 -7.2 -2.8 -2.9 -2.7 -9.7 4.2
2016-17(Apr-Mar) 4.8 3.2 -2.5 -1.0 4.9 0.2 10.7 -1.2 5.8
2017-18(Apr-Mar) 4.3 2.6 -0.9 2.9 4.6 0.03 5.6 6.3 5.3
2018-19(Apr-Mar) 4.4 7.4 -4.1 0.8 3.1 0.3 5.1 13.3 5.2
2019-20(Apr-Mar) 0.4 -0.4 -5.9 -5.6 0.2 2.7 3.4 -0.9 0.9
2020-21(Apr-Dec)* -10.1 -1.9 -5.7 -11.6 -13.5 3.0 -16.7 -18.3 -3.7

* Provisional

Eight Core Industries includes Coal, Crude Oil, Natural Gas, Petroleum Refinery, Fertilizers, Steel, Cement& Electricity.

 

 

 

 

About IIPnews

Leave a Reply

Your email address will not be published. Required fields are marked *

*

x

Check Also

Production of coal

Most of the demand of coal in the country is met through indigenous production/supply. The ...

DPIIT promotes green logistics industry balancing economic growth and environment

The Government recognizes the importance of sustainable logistics for India’s economic growth and environmental well-being. ...

Government provides incentives to small tea growers

The Tea Development & Promotion Scheme for the period 2023-24 to 2025-26 inter alia includes ...

EXPORT OF SEA FOOD

The current status of the export of seafood from the country is given below:-   ...

INDIA’S REAL GDP PROJECTED TO GROW BETWEEN 6.5–7 PER CENT IN 2024-25

India’s real GDP is projected to grow between 6.5–7 per cent in 2024-25. The Indian ...

INDIAN ECONOMY NEEDS TO GENERATE NEARLY 78.5 LAKH JOBS ANNUALLY IN THE NON-FARM SECTOR UNTIL 2030 TO CATER TO THE RISING WORKFORCE

With the global labour market amidst a ‘disruption,’ and constantly being reshaped by the fourth ...

Air Pollution caused by Stubble Burning

The Ministry of Environment, Forests and Climate Change has identified Crop Residue Management as one ...

Combined Index of Eight Core Industries (ICI) increases by 5.2 per cent (provisional) in March, 2024 as compared to March, 2023

The combined Index of Eight Core Industries (ICI) increased by 5.2 per cent (provisional) in March, 2024 ...

Index Numbers of Wholesale Price in India for the Month of March, 2024 (Base Year: 2011-12)

The annual rate of inflation based on all India Wholesale Price Index (WPI) number is ...

Despite persistent global challenges, overall exports (merchandise + services) estimated to surpass last year’s highest record. It is estimated to reach USD 776.68 Billion in FY 2023-24 as compared to USD 776.40 Billion in FY 2022-23.

India’s overall exports (Merchandise and Services combined) in March 2024* is estimated to be USD ...

WP2Social Auto Publish Powered By : XYZScripts.com