India 2018

Industry 329
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Industry
INDUSTRIAL Policy of the Government seeks to maintain a sustained growth
in productivity;to enhance gainful employment;to achieve optimal utilisation
of human resources; to attain international competitiveness; and to transform
India into a major partner and player in the global arena. Specific steps were
taken to boost it further. Industrial licensing has been abolished for most of the
industries except for those related to security, strategic and environmental
concerns.These are (i) electronic aerospace and defence equipment; (ii) industrial
explosives including detonating fuses, safety fuses, gunpowder, cellulose and
matches; (iii) specified hazardous chemicals i.e., hydrocyanic acid and its
derivatives; phosgene and its derivatives and isocyanates and disocyanates of
hydrocarbon, not elsewhere specified (example methyl isocyanate); and (iv)
cigars and cigarettes of tobacco and manufactured tobacco substitutes.
The number of industries reserved for public sector has also been reduced.
At present, only Atomic Energy and Railway Operations other than construction,
operation and maintenance sectors are reserved for public sector. Industries
not covered under compulsory licensing and not reserved for public sector are
required to file an Industrial Entrepreneurs' Memorandum (IEM) with the
Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and
Promotion (DIPP). Such memoranda are to be filed by non-MSME category
industrial undertakings. Application for Industrial License and Industrial
Entrepreneur Memorandum (IEM) has been made online without human
interface on 24×7 basis at the e-Biz website.
Index of Industrial Production
Index of Industrial Production (IIP) is a measure of industrial performance which
is compiled and released every month by Central Statistics Office (CSO). CSO
revised the base year of IIP in May, 2017 from 2004-05 to 2011-12. The latest
series with base year 2011-12 is more representative of the current structure of
the industrial sector. It comprises 3 sectors mining, manufacturing and electricity.
The weighting diagram for this series is drawn using relative importance of the
sectors in GDP, which is based on the National Accounts. IIP is categorized in
sectoral and use-based classifications.
As per the new base year, IIP registered growth rate of more than 3 per
cent in 2012-13 and 2013-14 reaching the level of 4 per cent in 2014-15. Thereafter,
it decelerated to 3.3 per cent in 2015-16. However, in 2016-17, IIP registered
growth of 4.6 per cent on account of growth in electricity generation (5.8 per
cent), mining (5.3 per cent) and manufacturing (4.4 per cent). During April-
August, 2017-18, IIP registered growth of 2.2 per cent as manufacturing grew
by 1.6 per cent while mining and electricity generation registered growth of 3.3
per cent and 6.2 per cent respectively.