Slow-Down in Industrial Output
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)
Sectors Weights June July Aug Sep
Mining 14.157 -1.4 1.5 -4.1 -5.6
Manufacturing 75.527 11.2 3.2 4.0 2.1
Electricity 10.316 7.9 13.1 9.5 9.0
Overall IIP 100 9.5 3.8 3.6 1.9
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.
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