Annual Report 2016-17
Government of India
Ministry of Commerce and Industry
Department of Industrial Policy & Promotion
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Contents
S. No. Chapter Page No
1. Role and Functions 1
2. Evolution and Development of Industrial Policy 13
3. National Manufacturing Policy 22
4. Industrial Corridors 25
5. Improvement of Business Environment : eBiz Project 34
6. Ease of Doing Business 39
7. Make in India Initiative 47
8. Development Schemes 50
9. Industries and Industrial & Technical Development 62 10. United Nations Industrial Development Organisation (UNIDO) 82
11. Foreign Direct Investment 87
12. Investment Promotion & International Cooperation 91
13. Protection of Intellectual Property Rights 99
14. Administration of Indian Boilers Act, 1923 111
15. Attached & Subordinate Offices and other Organisations 114 16. Representation of Scheduled Castes/Scheduled Tribes/OBCs/ 195
Ex-servicemen and Physically Disabled persons in Services
17. Women Welfare Activities 196
18. Implementation of Official Language Policy of the Union 197
19. Vigilance Activities 201
20. Citizen's Charter 203
21. Right to Information 207
Appendices I-IX 208
1
Role and Functions
The role of the Department of Industrial Policy and Promotion (DIPP) is to promote the industrial sector in India and to facilitate balanced development of industries.
Under the seventh schedule of the Constitution, those industries which are declared by Parliament, by law, in the public interest, to be under control of Union, are administered by DIPP. In addition to this Constitutionally delineated role, matters relating to development of industries by the Union, explosives, UNIDO, patents, innovations and designs, trademarks and merchandise marks, manufacture, supply and distribution of salt by Union agencies and regulation and control of manufacture, supply and distribution of salt by other agencies, are specifically administered by the Department of Industrial Policy and Promotion on behalf of the Union of India.
Further, the Department is also responsible for the administration of the Boilers Act, 1923, for the subject “Boiler” which is in the Concurrent List.
Objectives, Functions and Laws Administered
The broad objectives of the Department, in line with its defined role, are as follows:(i) Accelerating industrial growth by providing financial, infrastructural and other support.
(ii) Facilitating foreign investment in industries and coordinating with different agencies for fastracking of investment approvals.
(iii) Facilitating development of industries in North East and other special category states.
(iv) Improving intellectual property rights regime consistent with the country's international commitments.
(v) Maintaining a sound information base of macroeconomic indicators of industrial production and prices.
(vi) Initiating measures towards procedural changes to make functioning of the department more transparent and responsive.
Over the years, the role of DIPP has evolved from being a regulator and administrator of the industrial sector to that of a facilitator of new technology, and Foreign Direct Investment inflows into the country.
The key functions of DIPP are:
(i) Formulation and implementation of industrial policy and administration of Industries (Development & Regulation) Act, 1951.
(ii) Monitoring and stimulation of industrial growth in general as also the industries specifically assigned to DIPP as per Allocation of Business Rules, 1961.
iii) Promotion of industrial development in North East and special category States of J&K, Himachal Pradesh and Uttarakhand through appropriate incentives framework.
iv) Formulation of Foreign Direct Investment Policy and promotion and facilitation of direct foreign and nonresident investments.
Chapter 1 Role and Functions
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Role and Functions
v) Formulation of policies relating to Intellectual Property Rights in the field of Patents, Trade Marks, Industrial Design and Geographic Indication of Goods and administration of regulations and rules under IPR.
vi) Compilation of Wholesale Price Index and monthly industrial production statistics for use in construction of the Index of Industrial Production.
The Department of Industrial Policy and Promotion administers the following Central Legislations through its attached/subordinate offices and statutory organizations:
a) The Patents Act, 1970, the Trade Marks Act , 1999, the Geographical Indications of Goods (Registration and Protection) Act, 1999, Designs Act, 2000, Copyright Act, 1957 ( as amended in 2012) and the Semi- conductor Integrated Circuits Layout - Design Act, 2000. The associated Rules are administered through the Office of the Controller General of Patents, Designs and Trade Marks (CGPDTM). The Intellectual Property Appellate Board provided under the Trade Marks Act, 1999, has been set up in Chennai. The Copyright Board provided under Section 11 of the Copyright Act 1957.
b) The Explosives Act, 1884, and the Rules made thereunder i.e. the Explosives Rules, 2008; Gas Cylinder Rules, 2016, Static &
Mobile Pressure Vessels (Unfired) Rules, 2016, and Ammonium Nitrate Rules, 2012, which are administered through the Petroleum & Explosives Safety Organization, Nagpur.
c) The Salt Cess Act, 1953, is administered through the Office of the Salt Commissioner, Jaipur.
d) The Boilers Act, 1923, is administered through the Indian Boiler Regulations, 1950, framed by the Central Boilers Board, which is a statutory body under the said Act. Enforcement of this Act is the responsibility of both the State and Union governments since the subject
“Boiler” is listed in the concurrent list of the Constitution of India.
Organization of DIPP
The Organization Chart of the Department of Industrial Policy and Promotion is at Appendix-I while the list of attached and subordinate offices and other organizations under the Department is at Appendix-II.
Industrial Policy
The Department is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives. While individual administrative ministries look after the production, distribution, development and planning aspects of specific industries allocated to them, this department is responsible for the overall Industrial Policy. The Statement of Industrial Policy 1991, tabled in Parliament as a Resolution, forms the basis of the subsequent steps taken by the Government under the Policy to liberalize and promote industries over the years, including the Foreign Direct Investment (FDI) Policy and the specific National Manufacturing Policy (NMP) announced in 2011.
National Manufacturing Policy
In order to bring about a quantitative and qualitative change and to give necessary impetus to the manufacturing sector, the Department has notified the National Manufacturing Policy (NMP) with the objective of enhancing the share of manufacturing in GDP to 25% and creating 100
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Role and Functions
million jobs over a decade or so. The policy is based on the principle of industrial growth in partnership with the States. The Central Government will create the enabling policy frame work, provide incentives for infrastructure development on a Public Private Partnership (PPP) basis through appropriate financing instruments, and State Governments will be encouraged to adopt the instrumentalities provided in the policy. The Department has taken up the implementation of the policy in consultation with concerned Central Government agencies as well as the States.
National Investment and Manufacturing Zones (NIMZs) are an important instrumentality of the Policy. These zones have been conceived as large integrated industrial townships with state-of-the- art infrastructure; land use on the basis of zoning;
clean and energy efficient technology; necessary social infrastructure; skill development facilities, etc. to provide a conducive environment for manufacturing industries. So far fourteen NIMZs have been granted in-principle approval outside the DMIC region, of which NIMZs at Prakasam in Andhra Pradesh; Medak in Telangana and Kalinganagar, Jajpur district in Odisha have been granted final approval.
Government has also launched the Technology Acquisition and Development Fund (TADF) as envisaged in the National Manufacturing Policy on 18th November, 2015 to provide the funding specific to acquisition and development of clean and green technologies. The fund will support, via subsidies, manufacturing of equipment/machines/
devices for controlling pollution, reducing energy consumption and water conservation. The fund is now being managed by the Ministry of Micro, Small and Medium Enterprises.
Foreign Direct Investment (FDI) Policy
The Department of Industrial Policy & Promotion is the nodal Department for formulation of thepolicy of the Government on Foreign Direct Investment (FDI). It is also responsible for maintenance and management of data on inward FDI into India, based upon the remittances reported by the Reserve Bank of India.
The FDI policy is reviewed on an ongoing basis, with a view to making it more investor-friendly.
With a view to attracting higher levels of FDI, Government has put in place a liberal policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/
activities. Significant changes have been made in the FDI policy regime in recent times, to ensure that India remains an increasingly attractive investment destination. The Department plays an active role in the liberalization and rationalization of the FDI policy. Towards this end, it has been constructively engaged in extensive stakeholder consultations on various aspects of the FDI policy.
Specific Industries Administered by DIPP The Department monitors industrial growth and production in general and in select industrial sectors such as leather, cement, paper and pulp, tyre and rubber, light electrical industries, consumer goods, consumer durables, light machine tools, light industrial machinery, light engineering industries etc. as indicated in the Allocation of Business Rules, 1961.
Appropriate policy interventions are made, as required from the emerging concerns from time to time.
For overall development of Leather Sector, the Department administers the Indian Leather Development Programme (ILDP). The Scheme aims at augmenting raw material base through modernization and technology up-gradation of leather units, address environmental concerns, human resource development, support to traditional leather artisans, address infrastructure constraints and establish institutional facilities.
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Role and Functions
Investment Promotion and International Cooperation
The Department plays an active role in investment promotion and facilitation through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. International co-operation for industrial partnerships is solicited through both bilateral and multilateral arrangements. It also coordinates with apex industry associations like Federation of Indian Chambers of Commerce and Industry (FICCI).
Confederation of Indian Industry(CII), the Associated Chambers of Commerce and Industry (ASSOCHAM), etc; in their activities relating to promotion of industrial cooperation, both through bilateral and multilateral initiatives intended to stimulate the inflow of foreign direct investment into India.
Ease of Doing Business
In order to improve the business environment in the country, the Department of Industrial Policy and Promotion (DIPP) has taken up a series of measures to simplify and rationalize the regulatory processes (registration and inspection processes) and introduction of information technology as enabler to make governance more efficient and effective. States too have been brought on board in the process to expand the coverage of these efforts. DIPP has been closely working with the State Governments and Union Territory (UT) Administration to help them identify constraints in doing business and improving the overall business environment in respective States and Union Territories. DIPP launched an online portal to track implementation of reforms on a real-time basis. The same are available on www.eodb.dipp.
nic.in. State-wise ranking in carrying out reforms has been done again this year based on extensive criteria.
India ranks 130th in the World Bank’s annual Doing Business Report (DBR) 2017 as against 131st rank (revised) in the Doing Business Report 2016. The Doing Business report ranks countries on the basis of Distance to Frontier, an absolute score that measures the gap between India and the global best practice on 10 specified indicators.
India’s absolute score improved from 53.93 in DBR 2016 to 55.27 in DBR 2017. The ease of doing business index is meant to measure regulations directly affecting businesses and a nation’s rank is based on the average of 10 indicators viz. starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
Other important measures taken by the Government to boost the business regulatory environment and to improve ease of doing business in the country include integration of 20 services on e-biz portal to function as a single window for obtaining Government clearances, integration of the process of incorporation of the company and application for Director’s Identification Number (DIN), removal of requirements of minimum paid-up capital and common seal for companies.
Make in India
The Department has launched “Make in India”
initiative, a global promotional campaign to project India as an investment destination and potential manufacturing hub. The campaign was launched by the Prime Minister on 25th September 2014.
Invest India
In order to assist and handhold foreign investors, Invest India has been set up as a Joint Venture Company (Not for Profit Company) between Department of Industrial Policy & Promotion
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Role and Functions
(DIPP), Ministry of Commerce and Industry, Government of India, Federation of Indian Chambers of Commerce and Industry (FICCI) and various State Governments. Invest India is responsible for promoting and facilitating investments to India. The shareholding is 51% of FICCI and 49% of DIPP. Subsequently DIPP will dilute its equity to include all State Governments.
Already seven states have taken up shares in Invest India.
Invest India shall act as a first reference point for investors. Invest India shall also be a facilitator and partner offering handholding services to the investors to help them speedily fructify their investment plans.
An Investor Facilitation Cell has been created at Invest India to assist, guide, support, handhold and facilitate investors during various states of their project.
Startup India
The “Start-up India” initiative announced by the Hon’ble Prime Minister on 15.08.2015 aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive to growth of Startups.
Startup India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities.
The efforts of the government are aimed at empowering Startups to grow through innovation and design. It is intended to provide the much needed impetus for the Startups to launch and scale greater heights.
In order to meet the objectives of the
initiative, the Honourable Prime Minister on 16th January 2016 launched the Startup India Action Plan.
The Startup India Action Plan consists of 19 action items spanning across areas such as
“Simplification and handholding”, “Funding support and incentives” and “Industry-academia partnership and incubation”. Since the launch of the program, a number of forward looking strategic amendments to the existing policy ecology have been introduced, like:
1. Fund of Funds
For providing fund support for Startups, Government has created a ‘Fund of Funds for Startups (FFS)’ at Small Industries Development Bank of India (SIDBI) with a corpus of Rs. 10,000 crore. The FFS shall contribute to the corpus of Alternate Investment funds (AIFs) for investing in equity and equity linked instruments of various Startups. The FFS is managed by Small Industries Bank of India (SIDBI) for which operational guidelines have been issued. In 2015-16, Rs. 500 crores was released towards the FFS corpus.
2. Credit Guarantee Fund for Startups
• Since debt funding for Startups is perceived as high risk activity, a Credit Guarantee Fund for Startups is being setup with a budgetary corpus of Rs 500 crore per year, over the next four years, to provide credit guarantee cover to banks and lending institutions providing loans to Startups.
• Once rolled out, the scheme, in the lines of credit guarantee scheme for MSME, is likely to provide a huge impetus for enabling flow of much needed credit to the Startups which may run into several thousands of crores.
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Role and Functions
3. Relaxed Norms in Public Procurement for Startups
Provision has been introduced in the procurement policy of Ministry of Micro, Small and Medium Enterprises (Policy Circular No. 1(2) (1)/2016-MA dated March 10, 2016) to relax norms pertaining to prior experience / turnover for Micro and Small Enterprises. Department of Expenditure has issued a notification for relaxing public procurement norms in respect of all Startups (including medium enterprises) by all central Ministries/Departments.
4. Tax Incentives:
• 3 Year Tax Exemption: The Finance Act, 2016 (Section 80- IAC) has provision for Startups (Companies and LLPs) to get income tax exemption for 3 years in a block of 5 years, if they are incorporated between 1st April 2016 and 31st March 2019. To avail these benefits, a Startup must get a Certificate of Eligibility from the Inter-Ministerial Board.
• Removal of Angel Tax: Tax exemption on investments made in excess of face value in the shares of a Startup company has been introduced on 14 June 2016.
• Tax Exemption on Capital Gains: Section 54 EE has been introduced in the Finance Act, 2016 which provides for exemption of capital gain (not exceeding INR 50 lakhs in a financial year) arising out of transfer of long term capital asset invested in a fund notified by Central Government.
Section 54GB of Income Tax Act, 1961 has been amended to provide for exemption from tax on capital gains arising out of sale of residential house or a residential plot of land if the amount of net consideration is invested in equity shares of eligible Startups.
5. Legal Support and Fast-tracking Patent Examination at Lower Costs
A scheme for Startups IPR Protection (SIPP) for facilitating fast track filing of Patents, Trademarks and Designs by Startups has been introduced.
The scheme provides for expedited examination of patents filed by Startups. This will reduce the time taken in getting patents. The fee for filing of patents for Startups has also been reduced up to 80%.
Panels of facilitators for Patents and Trademark applications have been formed to facilitate the process of patent filing and acquisition. The facilitators would provide legal guidance and handholding through the entire patent acquisition process free of cost.
6. Self-Certification based Compliance Regime:
Compliance norms relating to Environmental and Labour laws have been eased in order to reduce the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance costs low.
Ministry of Environment and Forests (MoEF) has published a list of 36 white category industries.
Startups falling under the “White category” would be able to self-certify compliance in respect of 3 Environment Acts -
• The Water (Prevention & Control of Pollution) Act, 1974;
• The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
• The Air (Prevention & Control of Pollution) Act, 1981)
Further, Ministry of Labour and Employment (MoLE) has issued guidelines to State Governments whereby Startups shall be allowed to self-certify compliance in respect of 6 Labour laws. These shall be effective after concurrence of States/UTs.
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Role and Functions
The Acts are:
• The Building and Other Constructions Workers’ (Regulation of Employment &
Conditions of Service) Act, 1996
• The Inter- State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
• The Payment of Gratuity Act, 1972
• The Contract Labour (Regulation and Abolition) Act, 1970
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
• The Employees’ State Insurance Act, 1948 So far 9 States have confirmed compliance to the advisory issued by Ministry of Labour and Employment (MoLE):
• Rajasthan
• Uttarakhand
• Madhya Pradesh
• Chhattisgarh
• Delhi
• Jharkhand
• Gujarat
• Chandigarh
• Daman & Diu
7. Setting up Incubators
• Under Atal Innovation Mission, Niti Ayog will set up Atal Incubation Centers (AICs) in public and private sector. NITI Aayog has received 3658 applications (1719 from academic institutions and 1939 from non-academic institution) for setting up Atal Incubation Centers (AICs) from both Public and Private sector organizations.
• Under the Mission, a grant-in-aid of Rs.
10 crore would be provided to scale up
an existing incubator for a maximum of 5 years to cover the capital and operational costs in running the center. NITI Aayog has received 232 applications for providing scale up support for established incubation centers.
8. Setting up of Startup Centers and Technology Business Incubators (TBIs)
14 Startup Centres and 15 Technology Business Incubators are to be setup collaboratively by Ministry of Human Resource Development (MHRD) and the Department of Science and Technology (DST). Out of the 14 Startup Centers, 10 have been approved. Once MHRD releases its share of Rs. 25 lakhs each for the Startup centers, the Startup centers would be supported by DST by December, 2016.
Against the target of sanctioning 15 TBIs, 9 TBIs have been approved and other 6 TBIs are under process of being approved.
9. Research Parks
7 Research Parks will be set up as per the Startup India Action Plan. Out of these 7, IIT Kharagpur already has a functional Research Park. Further, DST will establish 1 Research Park at IIT Gandhinagar and the remaining 5 shall be set up by Ministry of Human Resource Development (MHRD) at IIT Guwahati, IIT Hyderabad, IIT Kanpur, IIT Delhi and IISc Bangalore.
Intellectual Property Rights
DIPP is entrusted with the responsibility of formulation of policy in respect of Intellectual Property Rights (IPRs) i.e. Patents, Designs, Trade Marks and Geographical Indications of Goods. The department administers Intellectual Property Rights (IPRs) Legislations, namely, the Patents Act, 1970, the Designs Act, 2000, the Trade Marks Act, 1999, Geographical Indications of Goods (Registration & Protection) Act, 1999,
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Role and Functions
The Copyright Act, 1957(as amended in 2012) and the Semi-conductor Integrated Circuits Layout-Design Act, 2000 through the Office of Controller General of Patents, Designs & Trade Marks (CGPDTM), a subordinate office of this Department. It also administers establishment matters in respect of the Intellectual Property Appellate Board (IPAB).
DIPP undertakes bilateral and multilateral cooperation activities in respect of Intellectual Property Right matters on behalf of the government. It is the nodal department for all matters relating to the World Intellectual Property Organization(WIPO).
Productivity and Quality
DIPP is the nodal department for the promotion of productivity and quality in the industrial sector. National Productivity Council, New Delhi, an autonomous body under this Department, undertakes programmes of technical cooperation with the Asian Productivity Organization(APO), Tokyo by sourcing experts to advise on productivity related projects and by deputing officials from the private and public sector to programmes conducted by the APO in industry, agriculture and service related sectors, in addition to its own training and awareness programmes on productivity.
The Quality Council of India, another autonomous body under this Department, promotes adoption of quality standards relating to Quality Management Systems (ISO 9001 Series), Environment Management Systems (ISO 14001 Series), Food Safety Management Systems (ISO 22000 Series), Product certification and inspection bodies through the accreditation services provided by National Accreditation Board for Certification Bodies (NABCB). Besides NABCB, there are three other boards viz National Accreditation Board for Education & Training (NABET); National Accreditation Board for Hospitals and Healthcare
Providers (NABH); and National Board for Quality Promotion(NBQP) which provide accreditation certification on education, health and quality promotion respectively.
UNIDO Activities
The department is the nodal Department for all matters related to UNIDO operations in India.
UNIDO is a specialized agency of the United Nations for industrial activities within the United Nations system.
India has been an active member of the organization since its inception. UNIDO has established its presence in India by means of following centers/offices with different mandates viz. (i) UNIDO Regional Office (URO) which is headed by UNIDO Representative (UR) to India and Asian region and (ii) International Center for Inclusive and Sustainable Industrial Development (IC-ISID), New Delhi.
The UNIDO Regional Office for South Asia, set up in New Delhi on 1st January, 2000, covers seven countries – India, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives and Afghanistan – and acts as a focal point to mobilize knowledge, information and technology for the region.
The Country Program of Cooperation between the Republic of India and UNIDO (CP 2013-17) signed in Vienna in September, 2013, by then Secretary, DIPP and DG, UNIDO, is presently guiding the activities of UNIDO in India. CP (2013-17) serves as the framework for interventions by UNIDO in India, as aligned with the Government’s 12th Five Year Plan and the United Nations Development Action Framework (UNDF) (2013-2017).
DIPP has established a new center, IC-ISID (International Center for Inclusive and Sustainable Industrial Development) in collaboration with UNIDO after successfull completion of UCSSIC and ICAMT. The center started its operation from 1st May 2015. The IC-ISID echoes the theme of
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Role and Functions
UNIDO’s post-2015 development agenda .i.e.
Inclusive and Sustainable Industrial Development aims to bring best practices and new improved manufacturing technology to Indian Industry and share India’s experience in cluster based development within the framework of South- South Cooperation. DIPP has undertaken 5 core projects under IC-ISID related to Leather, Pulp &
Paper, Cement, Bicycle and Cluster Development.
Programmes for Industrial Infrastructure
Development- Modified Industrial Infra-structure Upgradation Scheme (MIIUS)
Industrial Infrastructure Upgradation Scheme (IIUS) was launched in 2003 with the objective of enhancing industrial competitiveness of domestic industry by providing quality infrastructure through public private partnership in selected functional clusters/locations which have potential to become globally competitive. The Scheme was recast in February, 2009, on the basis of an independent evaluation to strengthen the implementation process. A modified version of IIUS viz ‘Modified Industrial Infrastructure Upgradation Scheme (MIIUS)’ was notified in July 2013. Under MIIUS, projects have been undertaken to upgrade infrastructure in existing Industrial Parks/ Estates/ Areas. Greenfield Projects have also been undertaken in backward areas and North Eastern Region (NER). Projects are being implemented by the State Implementing Agency (SIA) of the State Government. Central Grant upto 50% of the project cost with a ceiling of Rs.50.00 crore is provided under MIIUS with at least 25%contributions of State Implementing Agency and in case of North Eastern States, the central grant and minimum contribution of the SIA are up to 80% and 10% respectively. A two stage approval mechanism has been retained in the MIIUS. Final approval has been accorded to 24 projects with central grant amounting to Rs. 604.71 crore and 6 projects with central grant of Rs.129.91 crore are at ‘in-principle’ approval stage. Central assistance
of Rs. 186.74 crore has been released to 22 projects as on 22.12.2016 under MIIUS.
Summary of IIUS Projects: 37 projects have been approved in the 10th and 11th Five Year Plan Periods under IIUS and these projects have been provided central assistance of Rs.1400.58 crore (up to 22.12.2016), out of sanctioned central grant of Rs.1526.00 crore. Out of these 37 projects, 28 have been completed. One project namely Bamboo Technology Park, Guwahati has been completed in October, 2016 and three more projects are likely to be completed within the financial year 2016-17. In the year 2016- 17, Rs.106.88 crore (up to 22.12.2016) has been disbursed out of an allocation of Rs.152.00 crore.
Delhi Mumbai Industrial Corridor (DMIC) Project
The DMIC project was launched in pursuance of an MOU signed between the Government of India and the Government of Japan in December 2006.
The Delhi-Mumbai Industrial Corridor is being developed on either side, along the alignment of the 1504 km long Western Dedicated Rail Freight Corridor between Dadri (UP) and Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai. The project seeks to create a strong economic base with a globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance investments and attain sustainable development.
This covers the six States namely Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra. Delhi Mumbai Industrial Corridor Development Corporation was incorporated in January 2008 as the project implementation agency and has been restructured with 26% equity of the Govt. of Japan. The Japanese Government has also announced their financial support for DMIC project to an extent of US $ 4.5 billion in the first phase for the projects. Initially, eight nodes/
cities in the six DMIC States have been taken up for development.
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Role and Functions
Perspective planning for the entire DMIC corridor has been completed and subsequently, the master planning and preliminary engineering has been undertaken for the nodes/cities identified as part of phase-1 of DMIC corridor i.e. States of Gujarat, Maharashtra, Madhya Pradesh and Uttar Pradesh.
The work of Trunk Infrastructure at four identified locations in DMIC project namely, (i) Ahmedabad- Dholera Special Investment Region in Gujarat (ii) Shendra-Bidkin Industrial Area in Maharashtra (iii) Integrated Industrial Township Project in Greater Noida, Uttar Pradesh (iv) Integrated Industrial Township Project in Vikram Udyogpuri in Ujjain, Madhya Pradesh is under progress.
Chennai-Bengaluru Industrial Corridor (CBIC)
During the visit of the Prime Minister of Japan to India in December, 2011, the two Prime Ministers stressed the importance of infrastructure development in the areas between Chennai and Bengaluru and directed to operationalize the modalities for preparation of the Comprehensive Integrated Master Plan for development of Chennai Bengaluru Industrial Corridor (CBIC).
Japan International Cooperation Agency (JICA) Study Team undertook the Preliminary Study for Chennai- Bengaluru Industrial Corridor (CBIC) and submitted its Final Draft Report on the Comprehensive Integrated Master Planning of 3 identified Industrial Nodes namely Ponneri (Tamil Nadu), Tumakuru (Karnataka) and Krishnapatnam (Andhra Pradesh).
Bengaluru Mumbai Economic Corridor (BMEC)
During the Summit meeting held between Prime Ministers of India and United Kingdom in February,
2013, it was agreed to examine and evolve the modalities and content of a feasibility study for the development of BMEC. It will be now called as Bengaluru Mumbai Industrial Corridor (BMIC) for the sake of uniformity of nomenclature. Dharwad node in Karnataka has been identified for development by State Government. Government of Maharashtra has given in principle approval for development of Sangli/Solapur Node in the State.
Amritsar-Kolkata Industrial Corridor (AKIC)
In order to give a boost to industrial development in the densely populated states of Northern and Eastern India, the Government planned to commence preparatory work on creating an Amritsar Kolkata Industrial Corridor (AKIC). This will be structured around the Eastern Dedicated Freight Corridor (EDFC) as the backbone and also the highway system that exists in this route. The AKIC will also leverage the Inland Water System being developed along National Waterway-1 which extends from Allahabad to Haldia. The AKIC will cover the seven states namely Punjab, Haryana, Uttar Pradesh, Uttarkhand, Bihar, Jharkhand and West Bengal. The Perspective Plan for the overall AKIC region is being finalized.
Vizag Chennai Industrial Corridor (VCIC)
Department of Economic Affairs (DEA) has engaged Asian Development Bank (ADB) to conduct feasibility study and preparation of Conceptual Development Plan (CDP) for East Cost Economic Corridor (ECEC) linking Kolkata in the east through Chennai to Tuticorin in the south. In compliance of the commitment made by the Central Government in the Andhra Pradesh Reorganization Act, 2014, it was decided that in the first phase of the study, ADB would focus on the Vizag- Chennai Section so that a final view on Vizag- Chennai Industrial Corridor may be taken11
Role and Functions
within the timeline prescribed in the Act and further action would be taken accordingly.
As part of feasibility study of VCIC and also in terms of AP Reorganization Act, 2014, ADB team has since submitted the final report on Conceptual Development Plan (CDP) of VCIC within prescribed time period.
The master planning of the four nodes namely Vishakhapatnam, Srikalahasti-Yerpedu, Machili- patnam and Donakonda of Andhra Pradesh has since been initiated and is likely to be completed by March 2017.
National Industrial Corridor Development
& Implementation Trust (NICDIT)
Union Cabinet in its meeting held on 7th December, 2016 accorded approval for the expansion of the mandate of Delhi Mumbai Industrial Corridor Project Implementation Trust Fund (DMIC-PITF) and its re-designation as National Industrial Corridor Development & Implementation Trust (NICDIT) for integrated development of Industrial Corridors with permission to utilize financial assistance already sanctioned and sanction of additional amount of Rs. 1584 crore within extended period upto 31st March, 2022.
Package for Special Category States
For promoting industrialization in the remote, hilly and inaccessible areas, Central Government has formulated and notified North East Industrial and Investment Promotion Policy (NEIIPP), 2007, for the eight states of North East Region and Transport Subsidy Scheme, 1971, which in addition to the eight states of North East Region also covers Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Darjeeling district of West Bengal, Andaman & Nicobar Administration and Lakshadweep Administration. Benefits/
incentives available under different schemes of
North East Industrial and Investment Promotion Policy (NEIIPP), 2007, include Capital Investment Subsidy, Interest Subsidy, Reimbursement of Insurance, 100% Income Tax Exemption and Excise Duty Exemption based on value addition norms specified by the Department of Revenue, Ministry of Finance.
Transport subsidy, ranging from 50% to 90% is provided on the transport cost for transportation of raw material and finished goods to and from the location of the unit and the designated rail-head or port as the case may be. Transport subsidy also covers movement of raw materials/
finished goods from one state to another within the North Eastern Region. The Transport Subsidy Scheme, 1971, has been modified and replaced by Freight Subsidy Scheme, 2013, which has been notified on 23rd January, 2013.
New Industrial Policy and other concessions for the State of J&K were introduced by DIPP on 14th June, 2002 for a period of ten years. The incentives/concessions provided for industrial development in the State included (i) Central Capital Investment Subsidy Scheme, 2002; (ii) Central Interest Subsidy Scheme, 2002; (iii) the Central Comprehensive Insurance Scheme, 2002.
The package of incentives for the State of J&K has been extended for a further period of five year upto 14.06.2017.
New Industrial policy and other concessions for the States of Himachal Pradesh and Uttarakhand were introduced by the Department of Industrial Policy & Promotion on 7th January, 2003, with an aim to provide the required incentives as well as an enabling environment for industrial development, improve availability of capital and increase market access to provide a fillip to the private investment in the state. The scheme which was originally valid till 6th Jan., 2013, has been extended upto 31st March, 2017.
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Role and Functions
Monitoring of Industrial Activity, Production and Prices
DIPP monitors the performance in the industrial sector through collating information on Industrial Entrepreneurs’ Memorandum (IEM), Industrial License, Letter of Intent (LOI), Foreign Investment
data and industrial production returns. The Department also compiles and prepares index of production of 8 core infrastructure industries on a monthly basis. Besides, the Department publishes the monthly Wholesale Price Index (WPI) which forms the basis for official information on inflation.
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Evolution and Development of Industrial Policy
General Industrial Policy
The Industrial Policy Resolution of 1948 laid the foundation principles of a mixed economy. It defined the shape and pattern of industrialization delineating industries into public sector and private sector. The Industries (Development
& Regulation) Act, 1951, provided for the development and regulation of certain industries in order to direct balanced investment into desired channels of industrial activity keeping in view the national development objectives and goals. It provided for regulating the production and development of industries in consultation with States, Central Advisory Council
& Development Councils. It also provided for categorization in industries into various schedules for licensing, relief, reconstructions. Within this broad legal framework, detailed Policies, Rules, Regulations, Procedures have been formulated.
The objectives of the Industrial Policy formulated from time to time are (i) to ensure sustained growth & contribution to GDP; (ii) to enhance gainful employment & productivity (iii) to attain international competitiveness; and (iv) to transform India into a major manufacturing partner and player in the global arena.
Liberalization, Privatization, Globalization
To achieve these objectives, the focus at present is on liberalizing Indian industry by allowing freedom and flexibility to industry in responding to market forces and facilitate ease of doing business.In order to implement the Industrial Policy Statement of 1991 a Notification No.477(E) dated 25.07.1991 has been issued under the Industries (D&R) Act, 1951. The Notification has three Schedules:
Schedule (I)- List of Industries reserved for Public Sector: Presently, only following, two industries are reserved exclusively for the public sector:
(a) Atomic Energy (Production, separation or enrichment of special fissionable materials and substances and operation of the facilities) and,
(b) Railway Operations only:
Private investment has been allowed in railways for other construction, operation and maintenance.
Schedule (II)-List of Industries in respect of which Industrial Licence is compulsory: The list of items covered under Compulsory Licensing is reviewed on an ongoing basis.
After passing the bill in Parliament and Presidential assent, Industries (Development & Regulation) Amendment Act, 2016 (Act 27 of 2016) was notified on 14.5.2016 transferring industries engaged in manufacturing alcohol meant for Potable purposes under the total and exclusive control of States. Consequently, the Department had vide Gazette Notification no. 2737 (E) dated 11.8.2016 deleted the entries relating Potable alcohol from Schedule-II. Currently, only following four industries require an industrial licence:
Chapter 2
Ev olution and De velopmen t of Indus trial P olicy
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Ev olution and De velopmen t of Indus trial P olicy
a) Cigars and cigarettes of tobacco and manufactured tobacco substitutes;
b) Electronic aerospace and defence equipment;
c) Industrial explosives including detonating fuses, safety fuses, gunpowder, nitrocellulose and matches;
d) Specified hazardous chemicals i.e. (a) Hydrocyanic Acid and its derivatives, (b) Phosgene and its derivatives and (c) Isocyanats and disocyanates of hydrocarbon, not elsewhere specified (example methyl lsocyanate).
Schedule (III)-Article reserved for Small Scale Sector: Presently, there are no items
reserved for exclusive manufacture by Small Scale Sector.
Ease of doing Business
The following measures have been taken up by Government for ease of doing business for Industrial Licensing:
a. Process of applying for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) has been made completely online and this service is now available to entrepreneurs on eBiz website, without human interface.
b. Defence products list for industrial licensing, has been issued, wherein large number of parts/components, castings/
forgings etc. have been excluded from the purview of industrial licensing. Similarly, dual use items, having military as well as civilian applications (unless classified as defence item) will also not require Industrial Licence from defence angle.
c. Initial validity period of Industrial License has been increased from 2 years to 3 years.
d. Extension of validity of Industrial Licence increased from 5 years to 7 years.
e. Guidelines have been issued to streamline the processing of applications for grant of extension of validity of Industrial Licence.
f. Partial commencement of production is treated as commencement of production of all the items included in the licence.
g. The advanced version of NIC Code (NIC 2008) has been adopted, which is a superior/sophisticated industrial classification.
h. The ‘Security Manual for Licensed Defence Industry’ has been issued. With the issue of the Security Manual, the requirement of affidavit from the applicants has been done away with.
i. Process cleared for issue of Industrial License for manufacture of Unmanned Aerial Vehicle (UAV) for defence use
j. Restriction of annual capacity in the Industrial License for Defence Sector has been removed.
k. Licensee has been allowed to sell the defence items to the government entities under the control of MHA, PSUs, State Governments and other Defence Licensee companies without approval of Department of Defence Production.
l. Mapping of Sector specific FDI policy with NIC 2008 code has been completed and Press Note issued.
m. Initial validity of Industrial Licence for Defence Sector has been increased from the existing 3 years to 15 years with a provision of further extension of 3 years.
National Manufacturing Policy
Government of India had announced National Manufacturing Policy (NMP) in the year 2011
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with the objective of enhancing the share of manufacturing in GDP to 25% and creating 100 million jobs by 2022. The Policy also seeks to empower rural youth by imparting necessary skill/sets to make them employable. Sustainable development is integral to the spirit of the policy and technological value-addition in manufacturing has received special attention.
NMP provides that the National Investment and Manufacturing Zones (NIMZ) as well as the other Industrial Clusters willing to adopt the parameters laid down in the policy can benefit from the investment friendly provisions of NMP.
‘Make in India’ Initiative
In the continuous process of evolution of Industrial Policy to boost manufacturing, the ‘Make in India’
global initiative was launched on 25th September 2014, to invite both domestic and foreign investors to invest in India. The initiative was simultaneously launched in all State capitals and in several Indian Embassies/High Commissions where time-zones permitted. A few other Indian Embassies also organized “Make in India” interactions after the launch.
The ‘Make in India’ initiative is based on four pillars, identified to boost entrepreneurship in India, not only in manufacturing but also other sectors. These are:
(i) New Processes (ii) New Infrastructure (iii) New Sectors (iv) New Mindset
To promote India as a preferred investment destination in the markets overseas and to increase Indian share of Global FDI, an interactive portal http://www.makeinindia.com for dissemination of information and interaction with the investors has been created and is being further enhanced. Action Plans in respect of 22
Sectors were announced and the implementation is being monitored by the Cabinet Secretariat.
Policy for Foreign Direct Investment (FDI) Department of Industrial Policy & Promotion is mandated with the work of formulation of the FDI policy of the Government of India. Based upon the remittances reported by the Reserve Bank of India, this Department maintains data on inward FDI into India.
The FDI policy is reviewed on an ongoing basis, with a view to making it more investor friendly, in keeping with national interest. In order to attract higher levels of FDI, Government has put in place a liberal policy on FDI, under which FDI up to 100%, is permitted, under the automatic route, in most sectors/ activities. Significant changes have been made in the FDI policy regime in recent times, to ensure that India remains an increasingly attractive investment destination. The Department plays an active role in the liberalization and rationalization of the FDI policy. Towards this end, it has been constructively engaged in holding extensive stakeholder consultations on various aspects of the FDI policy.
The Government has taken a number of FDI Policy reforms, which are not only bold but also historic. The measures taken by the Government were directed to open new sectors for foreign direct investment, increase the sectoral limit of existing sectors and simplifying other conditions of the FDI policy. These policy reforms are meant to provide ease of doing business and accelerate the pace of foreign investment in the country. The reforms undertaken by the Government include increasing the FDI limit up to 100% with 49% under automatic route in the Defence sector. 100% FDI under government approval route has been permitted for trading, including through e-commerce, in respect of food products manufactured and/ or produced in India.
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Further, Government has allowed 100% FDI under automatic route in brownfield airport projects.
Foreign equity cap of activities of Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline has been increased from 49% to 100%, with 49% under automatic route, and beyond that through government approval route. Further, foreign equity cap of activities of Non-Scheduled Air Transport Service, Ground Handling Services have been increased from 74% to 100% under the automatic route. The other sectors/ activities in which FDI policy reforms have been undertaken are Broadcasting, Manufacturing, Single Brand Retail Trading, Pharmaceuticals, Private Security Agencies, E-commerce and Other Financial Services.
FDI Inflows
Total FDI into India, since April, 2000 including equity inflows, reinvested earnings and other capital is US$ 457.35 billion (April, 2000 – November, 2016). During the calendar year 2016 (upto November, 2016), FDI equity inflows of US$
43.06 billion have been received. This represents increase of 24% over the FDI equity inflows of US
$ 34.69 billion received during the corresponding period.
The FDI equity during the current financial year 2016-17 (up to November, 2016) surged by 31%
to US$ 32.50 billion from US$ 24.81 billion in the year-ago period. Further, during the last 32 months i.e. April, 2014 to November, 2016, FDI equity inflow recorded a growth of 54% from US$ 67.30 billion to US$ 103.43 billion over the preceding period of 32 months (August, 2011 to March, 2014).
Industrial Management
It has been continuous endeavour of the Department of Industrial Policy and Promotion to make its functioning Industry friendly. The Industrial Entrepreneur Memorandum Section
is ISO 9001:2008 certified for maintaining the Quality Policy.
(a) Industrial Entrepreneur Memo- randum (IEM)
As per the liberalized policy in place since 1991, all non-MSME Industrial undertakings (with an investment above Rs.10 crore in Plant and machinery for manufacturing sector and more than Rs. 5 Crore for service sector) which are exempt from obtaining an industrial licence are required to file an Industrial Entrepreneur Memorandum (IEM) with the Secretariat for Industrial Assistance.
As a measure to facilitate ease of doing business, filing of online IEMs under e-BIZ has been initiated since January 2014. This means that the entrepreneurs do not need to travel to Udyog Bhavan, New Delhi and can apply for IEM online on 24X7 basis. An acknowledgement is issued within 48 hrs on receipt of Part ‘A’ of the IEM form and no further approval is required, under the Industries (D&R) Act, 1951. Relevant information is uploaded on website of the Department and is available in public domain. Immediately after commencement of commercial production, Part
‘B’ of the IEM is required to be filed.
Filing an IEM is primarily for the purpose of collecting data about the delicensed sector on proposed investment, and type of industrial activity. It is also useful for the purpose of conducting a limited scrutiny mainly to preclude manufacturing of a compulsory licensable/SSI reserved item by IEM route.
A total of 89033 IEMs with proposed investment of Rs.1,04,55,130 crore are on record as on 31.12.2016. Statewise and sectorwise lists of IEMs filed during the last five years on a year-wise basis are at Appendices III and IV.
Since the inception of the IEM scheme in August 1991 till December 2016, a total of 11,937 units have formally intimated commencement of
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commercial production. The investment reported in respect of these IEMs is Rs.7,42,920 crore. The Statewise report of implementation of IEMs for the last five years is at Appendix-V.
(b) Industrial Investment Intentions
The Industrial Investment information maintained by the Department of Industrial Policy and Promotion covers the non-MSME category Industrial Entrepreneur Memoranda for the delicensed sector and Direct Industrial Licences (DIL) for licensable sector. Statewise and Sectorwise details of Industrial Investment Intentions during the 11th and 12th Plan periods are given at Appendices ‘VI’ & ‘VII’ respectively.
The information on Industrial Investment, information on IEMs filed on daily basis etc is being disseminated through this Department’
website for the information of the investors which leads to transparency and accountability of the functioning of this division.
(c) Industrial Production
(i) Industrial PerformanceThe Index of Industrial Production (IIP) over the base of 2004-05, measuring industrial performance monitors production in manufacturing, mining and electricity sectors and also in use-based group such as basic goods, capital goods, intermediate goods and consumer goods. The growth of IIP has been fluctuating over the last few years. The growth in overall IIP, peaked at 15.5 % in 2007- 08 (manufacturing growth rate was 18.4%) but declined to 2.5 % in 2008-09. However, it recovered to 5.3 % in 2009-10 and thereafter improved to 8.2 % in 2010-11. Subsequently, the industrial growth decelerated to 2.9 % in 2011-12 and 1.1
% in 2012-13 and the industrial production again moderated recording a negative growth of (-) 0.1
% in 2013-14. During 2014-15 and 2015-16, IIP recovered and registered positive growth of 2.8 % and 2.4% respectively. The details are given below in Table-2.1.
Table-2.1
Annual Growth Rate of Industrial Ptroduction (in per cent) Period Weight 2007-08 2008-
09 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 2014-
15 2015-
16 2016-17 (Apr-Nov)
Mining 14.2 4.6 2.6 7.9 5.2 -2.0 -2.3 -0.6 1.5 2.2 -0.3
Manufacturing 75.5 18.4 2.5 4.8 8.9 3.0 1.3 -0.8 2.3 2.0 -0.3
Electricity 10.3 6.3 2.7 6.1 5.5 8.2 4.0 6.1 8.4 5.7 5.0
Overall 100 15.5 2.5 5.3 8.2 2.9 1.1 -0.1 2.8 2.4 0.4
Source: Central Statistics Office.
During April-November, 2016-17, IIP increased by 0.4%. Manufacturing sector, which has more than 75% weight in IIP, declined by 0.3% during this period. This decline was primarily due to the negative growth in the production in industry groups like Food products & beverages, Wearing apparel, Luggage, handbags etc, Wood & wood
products, Publishing, printing & reproduction of recorded media, Office, accounting & computing machinery, Electrical machinery & apparatus, Medical, precision & optical instruments, watches and clocks and Furniture. The details of the growth in the manufacturing subgroups are given in the Table – 2.2.
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Table 2.2
Growth Rates of Production of Manufacturing Sub-Groups (Base: 2004-05=100) (in per cent)
Code Industry Weight 2007-08 2008- 09 2009-
10 2010-
11 2011- 12 2012-
13 2013- 14 2014-
15 2015- 16
2016-17 (Apr- Nov) 15 Food products &
beverages 72.76 12.5 -8.2 -1.4 7.0 15.4 2.9 -1.1 4.8 -6.2 -3.4
16 Tobacco products 15.7 -4.4 4.4 -0.6 2.0 5.4 -0.4 0.8 1.0 -0.2 1.4
17 Textiles 61.64 6.6 -3.6 6.1 6.7 -1.3 5.9 4.4 2.8 2.6 2.3
18 Wearing apparel 27.82 9.3 -10.2 1.9 3.7 -8.5 10.4 19.5 5.1 6.6 -3.6
19 Luggage,
handbags etc. 5.82 5.8 -5.1 1.3 8.1 3.7 7.3 5.2 10.4 -1.4 -7.3
20 Wood & wood
products 10.51 17.5 4.9 3.1 -2.2 1.8 -7.1 -2.2 4.4 3.2 -2.0
21 Paper & Paper
products 9.99 1.4 4.8 2.6 8.6 5.0 0.5 -0.1 3.3 2.8 0.8
22
Publishing, printing &
reproduction of recorded media
10.78 14.2 1.6 -6.0 11.2 29.6 -5.1 0.3 -4.1 -9.0 -1.9
23
Coke, refined petroleum products &
nuclear fuel
67.15 6.2 3.2 -1.3 -0.2 3.5 8.5 5.2 0.8 6.0 8.3
24 Chemicals and
chemical products 100.59 7.2 -2.9 5.0 2.0 -0.4 3.8 8.9 -0.3 3.8 2.6
25 Rubber and
plastic products 20.25 13.4 5.1 17.4 10.6 -0.3 0.2 -2.1 4.5 0.6 3.0
26 Other non- metallic mineral
products 43.14 9.3 3.3 7.8 4.1 4.8 1.9 1.1 2.5 1.6 2.8
27 Basic metals 113.35 17.9 1.7 2.1 8.8 8.7 1.9 0.3 12.7 1.0 5.8
28 Fabricated metal
Products 30.85 7.8 0.1 10.2 15.3 11.2 -4.7 -7.0 -0.6 1.5 0.6
29 Machinery and
equipment n.e.c. 37.63 22.6 -7.6 15.8 29.4 -5.8 -4.7 -4.7 4.0 2.6 8.4
30 Office, accounting
& computing
machinery 3.05 6.0 -9.7 3.8 -5.3 1.6 -13.9 -15.7 -38.0 0.8 -7.1
31 Electrical machinery &
apparatus 19.8 183.5 42.3 -13.5 2.8 -22.2 0.6 14.5 21.1 -11.4 47.3
32 Radio, TV and communication
equipment 9.89 93.1 20.3 11.3 12.7 4.3 5.6 -27.3 -54.4 3.7 12.8
33
Medical, precision
& optical instruments, watches and clocks
5.67 6.3 7.5 -15.8 6.8 10.9 -2.0 -5.1 -2.3 -2.2 -0.7
34 Motor vehicles,
trailers 40.64 9.5 -8.7 29.8 30.2 10.8 -5.3 -9.6 2.5 7.5 7.6
35 Other transport
equipment n.e.c. 18.25 -2.9 3.8 27.7 23.2 11.9 -0.1 5.9 6.4 1.3 7.3
36 Furniture 29.97 18.7 7.4 7.1 -7.5 -1.8 -5.1 -13.9 7.4 44.4 -4.4
Source: Central Statistics Office.
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As per the use-based classification of IIP, the production of Capital goods shrank during 2011- 12, 2012-13 and 2013-14. In 2014-15, though, the growth in production of Capital goods picked up but, it again registered negative growth during 2015-16. In April-November, 2016-17, Capital goods sector declined by 18.9%. After registering negative growth in two consecutive years 2013-
14 and 2014-15, Cosumer goods sector recovered to some extent and registered positive growth of 3.0% in 2015-16 and 1.8% during April-November, 2016-17 mainly on account of decent growth of consumer durable. The growth in production of Basic goods and Intermediate goods have been positive in the previous few years and during April-November, 2016-17 (Table-2.3).
Table 2.3: Growth Rate of Use-Based Classification of IIP (in per cent)
Sectors Weight 2007-
08 2008-
09 2009-
10 2010-
11 2011-
12 2012-
13 2013-
14 2014-
15 2015-
16 2016-17 (Apr-Nov)
Basic Goods 45.7 8.9 1.7 4.7 6.0 5.5 2.5 2.1 7.0 3.6 4.1
Capital Goods 8.8 48.5 11.3 1.0 14.8 -4.0 -6.0 -3.6 6.4 -2.9 -18.9
Intermediate
Goods 15.7 7.3 0.0 6.0 7.4 -0.6 1.6 3.1 1.7 2.5 3.4
Consumer
Goods 29.8 17.6 0.9 7.7 8.6 4.4 2.4 -2.8 -3.4 3.0 1.8
(i) Consumer
Durable 8.5 33.1 11.1 17.0 14.2 2.6 2.0 -12.2 -12.6 11.3 6.9
(ii) Consumer
Non-durable 21.3 10.2 -5.0 1.4 4.3 5.9 2.8 4.8 2.8 -1.8 -1.8
IIP 100 15.5 2.5 5.3 8.2 2.9 1.1 -0.1 2.8 2.4 +0.4
Source: Central Statistics Office.
The Graph below shows that growth in overall IIP and its three sectors has been volatile. The volatility appears to have increased during recent months.
During April–November, 2016-17, volatility in the
sectors persisted as displayed in the month-wise growth trend of IIP. During current financial year, the highest growth of 5.7 percent was recorded in November, 2016 while the lowest growth of (-) 2.5 percent recorded in October, 2016 (Graph – 2.1). Graph-2.1: Month-wise Sectoral growth rates during 2016-17 (April-October)
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The items included in IIP for which information is collected by DIPP and showing negative growth during April-November, 2016-17 are listed below in the Table – 2.4.
Table-2.4
Products showing negative growth during 2016-17 (April-November) Use-based
industry groups DIPP products
Basic Goods Stampings & Forgings, Aluminium wires & extrusions, Aluminium Sheets/Plates, Copper Metal Cathode, Granites, Aluminium Foils, Molasses, Bagasse, Phosphoric Acid, Ammonia, Glycerine, Dissolved Acetylene Gas.
Capital Goods
Three-Wheelers(including passenger & goods carrier), Grinding Wheels, Transformers (Small), Computers, Conductor, Aluminium, Air Break Switches / Circuit Breakers, Cable, Rubber Insulated, Sugar Machinery, X-ray equipment, Heat Exchangers, UPS/Inverter/Converter, H.T.Insulators, Electric Motors Phase-I ,Medical and Surgical Equipment (except x-ray), Rubber Transmission And V Belts, Industrial Chains, Packaging Machinery, Furnaces, Electrical Switchboard, Computer Peripherals, Agricultural Implements , Food Processing Machinery, Printers, Material Handling Equip., Dairy Machinery, DC Motors, Forklift, Construction Machine/
Equipment, Agricultural Machinery, Air Conditioner (Packaged), Magnesite, Dead Burnt.
Intermediate Goods
Block Board, Indust. Alcohol(Rectified/Denatured Spirit)., Particle Boards, Polyester Chips, Printed Circuit Board/Plate, Dyes, Tanned or Chrome Skins and Leathers, Sealed Compressors, Straw And Paper Boards of All Kinds, Hose Pipe, Wood Veneer, Electrical Stamping Lamination, Guar Gum Splits, Fibre Glass, Newsprint, Plastic Sheets, Fatty Acid, Gelatin, Valve, Rubber Chemical, Empty Capsules, Rubber Tread, Leather Finishing Chemicals & Auxiliaries, Toughened Glass, Plastic Bottles, IC Chips & Transistors.
Consumer Durables
Glazed Tiles /Ceramic Tiles , Pressure Cooker, Marble Tiles/Slabs, Bicycles, Aluminium Utensils, Tyre, Cycle/Rickshaw, Watches, Electric meter of all kinds, Pvc/Plastic Suitcases, Tube, Cycle/
Rickshaw, Mixers & Grinders, Rubber Flaps, Tyre, Jeep (Incl. SUVs, MUV), Battery Charger.
Consumer Non- durables
Antibiotics & It's Preparations, Apparels, Newspapers, Leather Garments, Rice, Pens of All Kind, Milk, Skimmed, Pasteurised, Biri, Writing & Printing Paper, Vitamins, Cashew Kernels, Ayurvedic Medicaments, Footwear except leather, Toilet Soap, Synthetic Detergents, Indian made Foreign Liquor, Polythene Bags Incl. Hdpe & Ldpe Bags, Fruit Pulp, Milk Powder all kind, Frozen Buffalo/Mutton Meat and edible Offals, Fluorescent Tubes,Chocolate, Ghee, Zarda/
Chewing Tobacco, Safety Matches, Syringes,Sports Goods, Rubber, Leather Bags, Wallets, Purses, Agarbattis and Dhoop, Mineral Water, Butter, Incandescent Lamp, Leather Gloves, Bread, Glucose(powder&liquid), Mercury Vapour Lamp, Tooth Powder.
Source: DIPP.
(ii) Performance of Eight Core Industries The Index of Eight Core Industries (ICI) monitors production of eight core industries i.e. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers,
Steel, Cement and Electricity every month. These eight industries have combined weight of around 37.90 % in Index of Industrial Production (IIP). ICI is released 12 days prior to the release of IIP by CSO.
