New Delhi: 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 Minister of State in the Ministry of Commerce and Industry, Som Parkash, said in a written reply in the Lok Sabha today.
The eight core industries includes Coal, Crude Oil, Natural Gas, Petroleum Refinery, Fertilizers, Steel, Cement & Electricity. The sector-wise and month-wise details of growth rate in the eight core industries since November 2019 are as follows:
The production of eight Core industries had 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. 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,, the Lok Sabha was told.
The minister stated that some of the steps taken by the Government to ensure growth in core sector and to promote domestic industry were as follows:
- 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.
- 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.
- To facilitate investment in the country, Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) have been set up in Ministries/Departments.
- 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.
– global bihari bureau
