Initiatives Taken by the Industrial Department of India

Nirmala Sitharaman Addresses Media at PIB National Media Centre
Development of a robust manufacturing sector is the priority of the Government. It has the potential to not only take theeconomic growth to a higher trajectory, but also to provide employment.   The Government is committed to remove all bottlenecks and develop India as a manufacturing hub. A number of measures have been taken by the Government in that direction.
              During the last three months, the economic activity has picked up as reflected in the quarterly growth figures of GDP which grew at 5.7 % in the first quarter (Q1) of April-June 2014over the corresponding period ofthe previous year (based on CSO estimates).Industrial growth in general and growth in the manufacturing sector in particular has shown significant improvement with growth rates becoming positive as compared to negative growth rates in these sectors in the corresponding period of 2013-14. Gross Fixed Capital Formation (GFCF), the indicator of investment grew as much as by 7% in Q1 of 2014-15, while last year in Q1the growth rate of GFCF was negative, whichreflects upbeat mood of investors and augurs well for the future growth prospects. This perceptible improvement is a reflection of the improved business environment and market sentiment. The HSBC PMI report of July and August 2014 and the Business Confidence Index recently brought out by NCAER validate the positive business sentiment.

                                This perceptible improvement in the economic performance in last three months is a reflection of the improved business environment and market sentiment, an outcome of the series of initiatives taken by the Government to bring about positive changes to revitalise the industrial sector in general and manufacturing sector in particular.A number of positive announcements have already been made in the Union Budget 2014-15 in that direction.

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