India 2018

Finance 229
higher growth in the industrial sector, which comprises policy amendments,
procedural simplifications as well as promotional measures like GST reform,
Make in India initiative, Startup India and Ease of Doing Business.
(i) Index of Industrial Production (IIP)
The Index of Industrial Production (IIP) with base 2011-12 which is quick
estimate of the performance of key industrial sectors increased by 4.6 per cent
in 2016-17 as compared to growth of 3.3 percent in 2015-16. Mining sector
increased by 5.3 per cent in 2016-17 as compared to 4.3 per cent in 2015-16.
Manufacturing sector registered a growth of 4.4 per cent in 2016-17 as compared
to 2.8 per cent in 2015-16. Electricity sector registered a growth of 5.8 per cent
during 2016-17 as compared to 5.7 per cent during 2015-16.
Primary goods sector registered growth of 4.9 per cent in 2016-17 as
compared to 5.0 per cent in 2015-16. The growth in capital goods sector was 3.2
per cent during 2016-17 as compared to 3.0 per cent during 2015-16. The
intermediate sector growth was 3.3 per cent in 2016-17 as compared to 1.5 per
cent in 2015-16. Infrastructure/construction goods sector growth was 3.9 per
cent in 2016-17 as compared to 2.8 per cent in 2015-16. Consumer durable sector
registered growth of 2.9 per cent in 2016-17 as compared to a growth of 3.4 per
cent in 2015-16. The production of consumer non-durable goods was 7.9 per
cent during 2016-17 as compared to 2.6 per cent during 2015-16.
(ii) Eight Core Infrastructure Supportive Industries
The eight core infrastructure supportive industries, namely, coal, crude oil,
natural gas, refinery products, fertilizers, steel, cement and electricity with a
total weight of 40.27 per cent in the Index of Industrial Production (IIP) have
registered a growth of 4.8 per cent in 2016-17 as compared to 3.0 per cent in
2015-16. The growth was 3.2 per cent in the coal sector, 4.9 per cent in refinery
products, 0.2 per cent in fertilizers, 10.7 per cent in steel and 5.8 per cent in
electricity during 2016-17. Crude oil, natural gas, and cement sectors have shown
negative growth in 2016-17.
Services Sector Performance
(i) Services GVA and GCF
The services sector remains the key driver of India's economic growth,
contributing almost 62 per cent of its gross value added growth in 2016-17.
However, the growth of this sector has moderated to 7.7 per cent in 2016-17
compared to 9.7 per cent achieved in the previous year, though it continues to
be higher than the other two sectors and nearly at the top among the 15 major
economies. The services growth moderation is mainly due to deceleration in
growth in two services categories-trade, hotels, transport, communication and
services related to broadcasting (7.8 per cent), and financial, real estate and
professional services (5.7 per cent). The share of services sector in total gross
capital formation (GCF), at current prices has increased consistently over the
last four years from 53.3 per cent in 2011-12 to 60.3 per cent in 2015-16.