GDP Growth
As per the Provisional Estimates, the real GDP or Gross Domestic Product (GDP) at constant (2011-12) prices in 2016-17 registered growth rate of 7.1%. The growth during 2015-16 and 2014-15 was 8.0% and 7.5% respectively.
Manufacturing Gross Value Added (GVA) registered growth of 7.9% in 2016-17 and overall Industry GVA (comprising mining & quarrying, Manufacturing, Electricity, gas, water supply and other utility services and Construction) registered growth of 5.6%.
Growth of GDP (in %)
* Source: Central Statistical Office, Government of India
Index of Industrial Production (IIP)
The Index of Industrial Production (IIP), a short term indicator for industrial performance, comprising Mining, Manufacturing and Electricity sectors registered growth of 4.6% in 2016-17 which is higher as compared to 3.3% in 2015-16 and 4.0% in 2014-15. Manufacturing sector grew at the rate of 4.4% in 2016-17 in comparison to 2.8% in 2015-16 and 3.8% in 2014-15. Mining and Electricity sectors registered growth of 5.3% and 5.8% in 2016-17 as compared to 4.3% and 5.7% in 2015-16 respectively. During the first quarter (April-June) of 2017-18, IIP grew at the rate of 2.0% compared to 7.1% in the corresponding period of 2016-17.
Sectoral Growth Rates of IIP, in %
(New series with Base year 2011-12)
Index of Core Industries (ICI)
The Eight Core Industries which include, Coal, Crude oil, Natural Gas, Refinery products, Fertilizers, Steel, Cement and Electricity comprise nearly 40.27% of the weight of items included in the Index of Industrial Production. The Index of Eight Core Industries (ICI) [Base 2011-12] registered growth of 4.8% in 2016-17 as compared to the growth of 3.0% in 2015-16 and 4.9% in 2014-15. In July, 2017, Index of Eight Core Industries grew by 2.4%.
During 2016-17, Steel production registered double digit growth (10.7%). Other sectors which registered positive growth are Electricity generation (5.8%), Refinery products (4.9%), Coal (3.2%) and Fertilizers (0.2%). The production of Crude Oil and Natural Gas and Cement registered negative growth during this period.
Growth of Index of Eight Core Industries (in %)
* Office of the Economic Adviser, Government of India
WPI – Inflation
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Base year of Wholesale Price Index (WPI) and Index of Industrial Production (IIP) has been revised from 2004-05 to 2011-12 on 12th May, 2017. The Press Release may be accessed here: 1) WPI Press Release; 2) IIP Press Release. Further, in line with the new base of IIP, the base year of Index of Eight Core Industries has also been revised from 2004-05 to 2011-12. |
The annual rate of inflation based on WPI (as per the new base 2011-12) decreased from 1.24 % in 2014-15 to -3.69% in 2015-16 and increased to 1.73% in 2016-17 (Final) and further increased to 2.21% in 2017-18 (provisional). After remaining in the negative zone for straight twenty months, the inflation has been in the positive since July 2016. For July 2017, the inflation based on WPI for all commodities stood at 1.88%.
Inflation based on WPI (%)
* Data is Provisional
Source: Office of the Economic Adviser, Government of India
Launched in September 2014, it is a national effort towards making India an important investment destination and a global hub for manufacturing, design and innovation. A comprehensive overhaul of out-dated processes and policies.
The “Make in India” initiative is based on four pillars, which have been identified to give boost to entrepreneurship in India, not only in manufacturing but also other sectors.
The four pillars of Make in India
Directed to de-license and de-regulate industry during the life cycle of a business. To improve the ease with which business is begun, established and sustained in the country.
Strong infrastructure is the foundation for growing industrial and manufacturing activities in the economy. Strengthening of physical and digital connectivity, unhindered supply of utilities , smart cities, industrial clusters are envisaged to support economic activity in the country. The National Investment and Infrastructure Fund (NIIF) has been set up to infuse equity capital in the infrastructure finance companies, to revive cash strapped stalled projects and incentivise green field investments.
Identify sectors with untapped potential for value addition, employment generation, technology upgradation and provide focussed thrust to develop these sectors.
It represents a change of the Government’s mindset – paradigm shift from ‘issuing authority’ to ‘partnering in business’. Approach of a facilitator and not a regulator by ensuring a continuous dialogue with industry to create an environment conducive for business in the country.
Social Buzz
Thrust Sectors
According to felt need and assessment of competitiveness of sectors concerned, 25 thrust sectors including manufacturing as well as relevant infrastructure and service sectors have been identified, spanning a number of Administrative Ministries and Departments.
Make in India Action Points
Sectoral Achievement Reports
Click on the sector to view the report
Hannover Messe, 2015
India participated as partner country in Hannover Messe Fair, 2015 organized in Germany during 12-17 April, 2015. During India’s participation the Core theme of Make in India was showcased and German as well as Companies from other countries were invited to make India their manufacturing base.
Make in India in Hanover Messe
Over 350 Indian Companies, 120 Indian CEO’s, 14 States of India participated this year at Hannover Messe. The fair was inaugurated jointly by the Prime Minister of India and Chancellor of Germany.
Make in India Week, 2016
Make in India week was organized from 13th -18th February 2O16 in Mumbai, showcasing the potential of design, innovation and sustainability across India’s manufacturing sectors in the coming decade. The week sparked a renewed sense of pride in India’s manufacturing – and took corporate and public participation to the next level.
‘Make in India is the biggest brand India has ever created’ – watch Prime Minister Narendra Modi’s speech on the occasion of the launch of the Make In India week, Mumbai, 13th Feb 2016
World Ranking
India was ranked 142 (revised later to 134) in the World Bank’s Doing Business Report, 2015 (DBR, 2015) which has improved to 130 as per the Doing Business Report, 2017 (DBR, 2017) released on 25th October, 2016.
The 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 has improved from 53.93 in DBR, 2016 and further to 55.27 in DBR, 2017.
Progress in Ease of Doing Business
e-Biz
–24 services of Central Government
–14 services of Andhra Pradesh & 15 services of Odisha
–2 services of Govt. of NCT of Delhi
Ease of Doing Business Achievements
–SPICe form notified as sole application form for incorporation of companies (w.e.f., from 01.01.2017).
–Fee for filing incorporation form reduced from ₹2000/- to ₹500.
–PAN and TAN now integrated with SPICe.
–The Companies (Amendment) Act, 2015 has removed requirements of minimum paid-up capital and common seal for companies and simplified other regulatory requirements.
–Registration fully online.
–Online deposit of contributions.
–Requirement of opening bank account not mandatory condition for registration.
–Returns unified and available on “Shram Suvidha” portal.
–Process of applying made online & service available 24X7 basis at eBiz website.
–Application Forms simplified.
–Initial validity period of IL increased from 2 years to 3 years and extension of validity from five years to seven years.
–Guidelines issued to streamline the processing of applications for grant of extension of validity of IL.
–Partial commencement of production is treated as commencement of production of all the items included in the license.
–Remaining 20 items de-reserved from the List of items reserved for exclusive manufacture in SSI Sector.
–The classification has been adopted
–Sector Specific FDI Policy mapped with NIC 2008
–Customs Electronic Commerce Interchange Gateway (ICEGATE) portal launched and Single Window Interface for Facilitating Trade (SWIFT) (online single window for clearance of goods) launched on the ICEGATE portal by integrating 6 other Departments.
–Customs’ risk management system has been extended to other regulatory agencies to ensure risk- based inspection.
–Mandatory documents required for export and imports reduced to three.
–Filing of import and export declarations and manifests made online with digital signature.
–Customs’ Clearance Facilitation Committee set up at every major customs seaport and airport at Central level.
–Customs 24×7 clearances now available on 19 sea ports and 17 Air Cargo ports.
–KYC norms with regard to consignments imported by individual relaxed.
–Facility of deferred payment for select category of importers and exporters introduced.
–The Arbitration and Conciliation Act amended to reduce the time taken in arbitration proceedings and grounds on which an award may be challenged.
–National Judicial Data Grid (NJDG) opened to general public on 19th September, 2015. NJDG is a national data warehouse for case data including case registration, cause list, case status and orders/judgments of courts across the country till District Level Courts.
–The following reports can be generated on the NJDG: (i) Time to Disposition Report (ii) Age of pending cases report (iii) Single case progress report.
–Request for data correction: According to Order 17 Rule 1 of the Code of Civil Procedure, 1908 an adjournment can only be granted in exceptional circumstances. According to proviso (b) of Rule 1, “no adjournment shall be granted at the request of a party, except where the circumstances are beyond the control of that party”.
–Financial Incentives such as refund of court fees are available for the parties to attempt resolution of disputes through mediation/conciliation under section 16 the Court Fees Act 1870.
–The Department of Financial Services (DFS) has amended the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Amendment Rules, 2016.
–No environment clearance required for 36 white industries.
–Mine prospecting projects exempted from the requirement of compensatory afforestation and Forest Rights Act (FRA) certificate for grant of forest clearance.
–No site inspection is required for mine prospecting projects on forestland for less than 100 ha. for construction of new roads/drilling of bore hole/ sample collection pits.
–Validity of Environment Clearance increased from 5 years to 7 years.
–Online submission of applications for environment/forest/wildlife clearances .
–The competent authorities in the state government have been delegated powers to issue permission for tree felling and commencement of work for a period of one year of linear projects without waiting for final approval under the Forest Conservation Act.
–Launched by Ministry of Labour and Employment.
–Single unified portal for Registration of Units for LIN, reporting of inspection, submission of returns and grievance redressal.
–National Company Law Tribunal and National Company Appellate Law Tribunal has been operationalized.
–Insolvency and Bankruptcy Board of India notified liquidation norms on 15th December, 2016 under Insolvency and Bankruptcy Code.
–The Corporate Insolvency Resolution provisions notified on 30th November, 2016 to implement the Insolvency and Bankruptcy Code.
–Regulations for Insolvency Professionals notified on 23rd November, 2016 for implementing the Insolvency and Bankruptcy Code
–Regulations for Insolvency Professionals Agency have been notified on 21st November, 2016.
–Registration process of VAT and Professional tax merged into a single process with single ID by the Government of Maharashtra.
–Registration for VAT in Delhi made online; TIN allotment done real-time and business can start immediately on receipt of TIN number.
–Time required for giving a new electric connection in Mumbai has been reduced to 21 days from 67 days; procedures down from 7 to 3.
–Simplified procedure for new electric connection in Delhi with reduced procedures and time.
–Municipal Corporation of Delhi launched online application process for grant of construction permits for residential and industrial buildings and commercial buildings.
State Ranking
DIPP has been closely working with the State Governments to help them identify constraints in doing business and improving overall business environment in their respective States.
Assessment of State Implementation of Business Reforms
–A 98-Point Action Plan for improving the regulatory framework for business as part of easing the doing business in the country was finalized at National Workshop of ‘Make in India’ held on 29.12.2014. The assessment to take stock of reforms implemented by States (on a 285 point questionnaire) between the period 1st January 2015 to 30th June 2015 was released on 14.09.2015.
–According to the assessment, on average, around 32% of the proposed reforms were implemented across the country. Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Odisha and Rajasthan have implemented over 50% of the listed reforms. The other three states in the top 10 are Karnataka, Maharashtra and Uttar Pradesh. None of the state was found to have implemented 75% or more of the proposed reforms.
–A 340-Point Business Reform Action Plan for States and Union Territories (UTs) was circulated by DIPP to all State/UT Governments in late October 2015 for further implementation. These were spread across 10 broad parameters – Access to information and transparency enablers; single window; environmental registration enablers; obtaining electricity connection; availability of land; construction permit enablers; inspection reform enablers; labour regulation enablers; online tax return filing; and commercial dispute resolution enablers.
–The results of the assessment which were released on 31.10.2016 demonstrate that States have increasingly risen to address the challenge of making it easier to do business.
–Business Reform Action Plan (BRAP) 2017 released for implementation by States/UTs on 13th April 2017.
–Action plan includes 372 recommendations for reforms on regulatory processes, policies, practices and procedures spread across 12 reform areas. The last date for the States/UTs to implement the reform is 31st October 2017.
–A comprehensive business-to-government (B2G) feedback exercise to be carried out whereby feedback on the quality of implementation of the reforms claimed by the States and UTs will be taken from businesses. Feedback scores will be used to generate a ranking of States/UTs in terms of reform implementation.
Results – Assessment of State Implementation of Business Reforms 2016
“The Minister of State for Commerce & Industry (Independent Charge), Smt. Nirmala Sitharaman interacting with the media on the EoDB report – State ranking”
India-UK Conference on Ease of Doing Business
The conference was held in New Delhi on 8th – 9th Dec, 2016. The discussion covered areas including regulatory reform, inspection reform, tax administration, trade facilitation, electricity provision, insolvency, land registry and standards. It showcased India’s focus on simplifying its business ecosystem and the work that the UK government is doing to share the key features of its globally renowned business ecosystem and practices.
“Inauguration of the India-UK Conference on Ease of Doing Business”
FDI Equity Inflows (in %) – Route wise
FDI Inflows
Total FDI Inflows (Amount in US$ billion)
*P – Provisional
FDI Policy Reforms
FDI Equity Inflows 2016-17 – Country-wise
FDI Equity Inflows 2016-17 – Sector-wise
Make in India – Investor Facilitation Cell
Invest India was operationalised with the Mission of ‘Promoting foreign investments in India in a focussed, comprehensive & structured manner while acting as the first reference point to provide quality input & support services to foreign investors’.
Achievements
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Awarded World’s best practice Investment Promotion Agency by UNCTAD in 2016 |
Country specific desks – Japan Plus
http://www.dipp.nic.in/japanplus/
Country specific desks – Korea Plus
‘Launch of Korea Plus in India and Korea’
With the intention to build a strong eco-system for nurturing innovation and Startups in the country, the Hon’ble Prime Minister launched Startup India Action Plan on January 16, 2016 in New Delhi
The Government through this initiative aims to empower Startups to grow through innovation and design
A 19 point action plan was announced to accelerate spread of the Startup movement
| Startups that fuel India : An electric two-wheeler manufacturer, ‘After Energy’ – a Startup founded by Mr. Ranveet Phikela, was provided support with regard to charging infrastructure and funding. The startup went on to win the Top Innovator award at The Economic Times Startup Awards 2016. National Automotive Board (NAB, Department of Heavy Industries) has now expressed interest in providing funding support for the setup of charging infrastructure. |
Action Plan
Social Buzz
Progress under Startup India
Achievements under Startup India
| Startup India facilitated Mr. Raish Bhai Mehmudi, a startup founder, facilitated engagement with Sagar University for mentorship & dedeicated support for registering under PRISM. His prototype of the water-carbide fuelled car has garnered the interest of manufacturers, who will be backing him in creating the final product. |
| Sagar Defence Engineering, founded by Mr. Nikunj Parashar, is a startup thar makes unmanned patrol boats at a cost of INR 2 crore vis a vis other global and Indian players that produce it for over INR 10 crore. The Founder were provided handholding support for model- related issues that made it difficult to get a sanction and procure industrial licenses for company incorporation. The Startup appeared in the Top 10 for DeLTY Electropark initiative, and was declared the winner of the maiden ‘MIS 2016 – DP World Prize’ contest. |
Industrial Corridors
The Department has taken up this programme of building pentagon of Industrial Corridors across the country with an objective to provide developed land and quality infrastructure for development of industrial townships.
Delhi-Mumbai Industrial Corridor (DMIC)
Estimated investment of US $ 100 Billion to develop sustainable industrial cities with world class infrastructure
Exhibition cum Convention Centre, Dwarka,Delhi
DMIC in Gujarat
DMIC in Haryana
DMIC in MadhyaPradesh
Integrated Industrial Township, Vikram Udyogpuri Ujjain MadhyaPradesh (1100 acres)
DMIC in Maharashtra
Shendra -Bidkin Industrial Area (SBIA) Maharashtra (8.39 sq kms)
–Master System Integrator (MSI) for implementation of various smart city components
–EPC contractor for phase-1 i.e. 10 sq kms for roads and underground utilities/services
DMIC in Rajasthan
Greenfield Aerotropolis Project at Bhiwadi
DMIC in Uttar Pradesh
Other Corridors
National Industrial Corridor Development & Implementation Trust (NICDIT)
National Investment and Manufacturing Zones (NIMZ)
14 NIMZs outside the DMIC region have been given in-principle approval:
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NIMZs at Prakasam in Andhra Pradesh; Medak in Telangana and Kalinganagar, Jajpur district in Odisha have been granted final approval. |
8 Investment Regions along DMIC project approved as NIMZs
Modified Industrial Infrastructure Upgradation Scheme (MIIUS)
National Intellectual Property Rights Policy
A comprehensive National IPR policy to stimulate innovation and creativity across sectors, and provide a clear vision regarding IPR issues
Objectives of the Policy
IPR Dashboard – Implementation and Monitoring
Cell for IPR Promotion and Management (CIPAM)
IPR Awareness Programs
International Treaties and Engagements
Engagement with States
Major Initiatives and Achievements
| 423 Patent & Design facilitators and 596 Trademark facilitators empanelled. 377 Patent and 262 Trademark applications filed by Startups. 292 Startups availed fee rebate & 62 requested expedited examination (upto 31st July 17) |
Trends in Patent and Trademark filing
Clearing Backlog/ Reducing Pendency
Amendments in Patent Rules and Trademark Rules
Amendments in Patent Rules:
Patent Rules, 2003 amended to streamline processes and make them more user friendly.
Following provisions provided:
Amendments in Trademark Rules:
Trademark Rules, 2002 have been amended to allow for accelerated examination of applications and simplification of procedures.
Some salient features are:
National Institute of Design
Status on four new NIDs
| 4 new NIDs | Land | Society Registration | Construction – Entrusted to NBCC | Academic Session |
| Jorhat | Provided by State Gov | Completed | Construction going on (40% work complete) | – |
| Bhopal | – | |||
| Kurukshetra | Started from 2016-17 | |||
| Vijayawada | NIT issued by NBCC | Started from 2015-16 |
Leather Sector
Achievements since May 2014 under different sub scheme
| Setting-up of Mega Leather Cluster at Nellore, Andhra Pradesh with GoI assistance of ₹ 125 cr approved |
Boiler
Salt
The Salt Commissioner’s Organization (SCO) is entrusted with the mandate for overall development of salt industry.
| India continues to hold the third position in production of salt after China and USA. The top production of salt during 2015-16 was about 276.43 lakh tonnes (incl. 6 lakh tonnes produced from salt pan lands owned by Salt Department). |
Development & welfare Schemes for Salt workers
| In 2015-16 two trainings for Master Trainer were conducted by Central Salt & Marine Chemicals Research Institute, Bhavnagar. In 2016-17 six training programmes have been organized. |
Explosives
In line with technological developments and simplification of licensing procedures, existing rules framed under various Acts reviewed and amendments made for the benefit of stakeholders
E-governance
North East Industrial and Investment Promotion Policy (NEIIPP), 2007
| 47,644 units industrial set up and ₹11,466.22 crore made in investments. Employment generated in 2,28,224(in nos).
Source : State Govt. Of NER |
Special Package for Industrial units in the states of Jammu & Kashmir, Himachal Pradesh and Uttarakhand
