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Rate of Industrial Growth



Rate of Industrial Growth
The rate of industrial growth, measured in terms of Index of Industrial Production (IIP) increased by 4.0 per cent during April-September, 2015-16 as compared to the growth of 2.9 per cent during the same period of previous year i.e. 2014-15. All the three industrial sectors viz. mining, manufacturing and electricity have registered positive growth during April-September in the current year.


The Government has taken a number of measures including administrative and regulatory, to accelerate the growth of industrial sector. For creation of conducive business environment, the Government is constantly simplifying and rationalizing the processes and the procedures for boosting investor sentiment, simplifying the policy and procedures for encouraging Foreign Direct Investment (FDI) and correcting the inverted duty structure.

Some of the recent initiatives also include pruning the list of industries that can be considered as defence industries requiring industrial license, two extensions of two years each permitted in the initial validity of three years of the industrial license to take it up to seven years, removal of stipulation of annual capacity in the industrial license, and deregulating the annual capacity for defence items for Industrial License. For defence projects validity of industrial licenses has been increased to 15 years, which can be further increased to 18 years.

With a view to liberalise and simplify the FDI policy, so as to provide ease of doing business in the country leading to larger FDI inflows, the Government has brought in FDI related reforms and liberalisation in a number of major sectors of the economy. Changes introduced in the policy include increase in sectoral limits, bringing more activities under automatic route and easing of conditionalities for foreign investments.

The Government has launched the e-biz Mission Mode Project under the National e-Governance Plan which has simplified procedures and as on date provides 29 G2B (Government to Business) services - 18 Central and 11 State/Municipal services, online. The Delhi Mumbai Industrial Corridor (DMIC) project is under implementation. In addition, the Government has conceptualized Amritsar Kolkata Industrial Corridor, Chennai-Bengaluru Industrial Corridor, Bengaluru Mumbai Economic Corridor and the Vizag-Chennai Industrial Corridor (as the first phase of an East Coast Economic Corridor), and setting up a National Industrial Corridor Development Authority (NICDA) for coordinating and overseeing progress of the various industrial corridors.

The Government has also launched “Make in India” programme with 25 thrust sectors to provide a major push to manufacturing in India. An Investor Facilitation Cell has been created viz ‘Invest India’ to assist, guide, handhold and facilitate investors during the various phases of business life cycle. This Cell provides necessary information on vast range of subjects; such as policies of the Ministries and State Governments, various incentive schemes and opportunities available, to make it easy for the investors to make necessary investment decision. Information on 25 thrust sectors has been put up on ‘Make in India’s web portal (http://www.makeinindia.com) along with details of FDI Policy, National Manufacturing Policy, Intellectual Property Rights and Delhi Mumbai Industrial Corridor and other National Industrial Corridors.

This information was given by the Minister of State(Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
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Inflow of FDI in Railways and Insurance Sectors

            FDI policy as contained in Consolidated FDI Policy Circular 2014 on Insurance was revised vide Press Notes dated 02.03.2015. FDI received in Insurance sector after the amendment of the policy and corresponding figures of the preceding period is as under:

Sl. No.
Sector
Period
Amount
(in US$ million)
Percentage change
1.
Insurance
March, 2015 to September, 2015
341.43
+152%
March, 2014 to September, 2014
135.30


Railway Infrastructure was opened to FDI vide Press Note dated 27.08.2014 and data on FDI inflows on this sector is not separately maintained.

                                    Data is not maintained centrally for assessing the impact of FDI norms relaxation on the employment generation, for a particular sector. However, FDI directly supplements the domestic capital and brings technology and skill in the sectors of direct entry. It has indirect multiplier effects on other related sectors also thereby stimulating economic growth leading to increased production, exports and employment generation.

            Government plays an active role in investment promotion, through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. Further, FDI policy is reviewed on an ongoing basis, with a view to making it more investor friendly. Significant changes are made in the FDI policy regime, from time to time, to ensure that India remains an increasingly attractive investment destination.


This information was given by the Minister of State(Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya  Sabha today.
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100 Per Cent FDI in Medical Devices
To give impetus to the medical devices sector and for easing the norms the Government vide Press Note 2 (2015 series) dated 21.01.2015 allowed 100% FDI under the automatic route for brownfield projects of medical devices industry.

The measure undertaken would help in easing the process of foreign investment in this industry which, in turn, could result in increased manufacturing of medical devices in India.

Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities. FDI policy is reviewed on an ongoing basis andsignificant changes are made in the FDI policy regime from time to time, to ensure that India remains increasingly attractive and Investor-friendly.

This information was given by the Minister of State(Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
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FDI Inflow


The amount of FDI inflow received during last year (2014-15) is US$ 44.29 billion. It has increased by 29% & 22% in comparison to financial year 2012-13 (US$ 34.29 billion) & 2013-14 (US$ 36.05 billion) respectively.

FDI in various sectors is allowed up to the different limits, varying from 20% to 100%, subject to prescribed conditions. The detailed information is available in ‘Consolidated FDI Policy Circular of 2015’ as amended time to time, at DIPP’s website (www.dipp.nic.in).

Sector-wise details of FDI equity inflow for the last F.Y. 2014-15 and current F.Y. 2015-16 (upto September, 2015) are as below:

Sl No
Sector
2014-15
Apr-Mar
2015-16
Apr-Sep
Total


FDI
in US$ million
FDI
in US$ million
FDI
in US$ million
1
METALLURGICAL INDUSTRIES
359.34
253.07
612.41
2
MINING
684.39
516.65
1,201.04
3
POWER
707.04
359.88
1,066.92
4
NON-CONVENTIONAL ENERGY
615.95
305.46
921.42
5
PETROLEUM & NATURAL GAS
1,079.02
47.10
1,126.12
6
BOILERS AND STEAM GENERATING PLANTS
1.33
26.08
27.41
7
PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS)
230.70
56.49
287.19
8
ELECTRICAL EQUIPMENTS
574.83
227.23
802.07
9
COMPUTER SOFTWARE & HARDWARE
2,296.04
3,056.83
5,352.87
10
ELECTRONICS
96.84
100.92
197.76
11
TELECOMMUNICATIONS
2,894.94
659.15
3,554.09
12
INFORMATION & BROADCASTING (INCLUDING PRINT MEDIA)
254.96
309.21
564.17
13
AUTOMOBILE INDUSTRY
2,725.64
1,464.28
4,189.92
14
AIR TRANSPORT (INCLUDING AIR FREIGHT)
74.56
34.16
108.72
15
SEA TRANSPORT
333.22
278.16
611.38
16
PORTS
1.90
0.00
1.90
17
RAILWAY RELATED COMPONENTS
129.73
15.21
144.94
18
INDUSTRIAL MACHINERY
716.79
239.34
956.13
19
MACHINE TOOLS
24.06
17.98
42.04
20
AGRICULTURAL MACHINERY
72.35
5.41
77.76
21
EARTH-MOVING MACHINERY
30.11
69.15
99.26
22
MISCELLANEOUS MECHANICAL & ENGINEERING INDUSTRIES
186.69
133.45
320.15
23
COMMERCIAL, OFFICE & HOUSEHOLD EQUIPMENTS
33.39
6.65
40.04
24
MEDICAL AND SURGICAL APPLIANCES
145.93
105.74
251.67
25
INDUSTRIAL INSTRUMENTS
0.85
7.03
7.88
26
SCIENTIFIC INSTRUMENTS
32.34
1.74
34.09
27
FERTILIZERS
225.32
0.10
225.42
28
CHEMICALS (OTHER THAN FERTILIZERS)
762.76
392.67
1,155.43
29
PHOTOGRAPHIC RAW FILM AND PAPER
0.75
0.00
0.75
30
DYE-STUFFS
54.89
3.32
58.21
31
DRUGS & PHARMACEUTICALS
1,497.74
225.91
1,723.64
32
TEXTILES (INCLUDING DYED,PRINTED)
197.42
148.72
346.14
33
PAPER AND PULP (INCLUDING PAPER PRODUCTS)
116.21
32.36
148.56
34
SUGAR
27.77
98.16
125.93
35
FERMENTATION INDUSTRIES
225.38
176.46
401.85
36
FOOD PROCESSING INDUSTRIES
515.86
238.68
754.54
37
VEGETABLE OILS AND VANASPATI
148.34
20.36
168.70
38
SOAPS, COSMETICS & TOILET PREPARATIONS
177.22
179.66
356.88
39
RUBBER GOODS
284.51
163.61
448.12
40
LEATHER,LEATHER GOODS AND PICKERS
34.21
8.22
42.43
41
GLUE AND GELATIN
21.44
0.01
21.45
42
GLASS
41.82
12.62
54.43
43
CERAMICS
35.29
26.77
62.06
44
CEMENT AND GYPSUM PRODUCTS
208.99
11.02
220.02
45
TIMBER PRODUCTS
8.97
22.31
31.28
46
DEFENCE INDUSTRIES
0.08
0.00
0.08
47
CONSULTANCY SERVICES
458.13
374.28
832.41
48
SERVICES SECTOR (Fin.,Banking,Insurance,Non Fin/Business,Outsourcing,R&D,Courier,Tech. Testing and Analysis, Other)
4,443.26
1,463.74
5,907.00
49
HOSPITAL & DIAGNOSTIC CENTRES
567.85
357.09
924.94
50
EDUCATION
78.86
117.40
196.25
51
HOTEL & TOURISM
777.01
563.96
1,340.98
52
TRADING
2,727.96
2,307.99
5,035.95
53
RETAIL TRADING
168.72
69.55
238.27
54
AGRICULTURE SERVICES
59.95
28.54
88.50
55
DIAMOND,GOLD ORNAMENTS
280.18
37.36
317.55
56
TEA AND COFFEE (PROCESSING & WAREHOUSING COFFEE & RUBBER)
1.43
1.11
2.53
57
PRINTING OF BOOKS (INCLUDING LITHO PRINTING INDUSTRY)
72.58
54.23
126.81
58
COIR
1.36
0.00
1.36
59
CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES
870.25
977.43
1,847.68
60
CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure and construction-development projects
769.14
81.00
850.13
61
MISCELLANEOUS INDUSTRIES
765.88
140.41
906.29

Grand Total
30,930.50
16,631.43
47,561.93



FDI data is not maintained state wise, but RBI regional office wise. FDI equity inflows recorded for a particular regional office of RBI, may cover more than one state. 
            The Government of India has taken up a series of measures to improve Ease of Doing Business. The emphasis has been on simplification and rationalization of the existing rules and introduction of information technology to make governance more efficient and effective.

This information was given by the Minister of State(Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.


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