(Sample Materials) Economic Survey & Government’s Plan, Programme & Policies – “Industry”


(Sample Materials)
Economic Survey & Government’s Plan, Programme & Policies – “Industry”

Contents of the Chapter:

  • Significance of Industrial Sector
  • State wise Comparison : Employment & GVA
  • Index of Industrial Protection
  • Industry wise Comparison : Employment & GVA
  • Annual Surveys of Industries
  • Micro, Small and Medium Enterprises (MSMEs)


Industrial growth in the country has, in terms of long run
trend, remained aligned with the growth rate of gross domestic product (GDP).
The long-term average annual growth of industries comprising mining,
manufacturing, and electricity, during the post-reform period between 1991-2 and
2011-12, averaged 6.7 per cent as against GDP growth of 6.9 per cent. Inclusion
of construction in industry raises this growth to 7.0 per cent. The share of
industry, including construction, in GDP remained generally stable at around 28
per cent in the post-reform period. Standard deviation of the average share was
very small and the coefficient of variation under 5 per cent validates this
stability. The share of manufacturing, which is the most dominant sector within
industry, also remained in the 14-16 per cent range during this period. The
share is modest when compared to that of China (above 40 per cent) and some of
the East Asian countries (above 30 per cent).

Employment in the industrial sector increased from 64.6
million persons in 1999-2000 to 100.7 million persons in 2009-10. The share of
industry in total employment increased from 16.2 per cent in 1999- 2000 to 21.9
per cent in 2009-10. However, the increase was largely on account of expansion
of employment opportunities in the construction sector, from 17.5 million in
1999-2000 to 44.2 million in 2009-10.

Candidate, This Material is from Economic Survey & Government Plan Programme and
Policies. For Details

Click Here


The index of industrial production (IIP), released each month
by CSO, MOSPI , is the key indicator of industrial performance. The new IIP
series with 2004-5 as base was released in June 2011 replacing the earlier IIP
series with base 1993-4. Recent industrial growth, measured in terms of IIP,
shows fluctuating trends. Growth had reached 15.5 per cent in 2007-8 and then
started decelerating. Initial deceleration in industrial growth was largely on
account of the global economic meltdown.


The Annual Survey of Industries (ASI) is the principal source
of organized manufacturing statistics in India. It provides statistical
information to assess and evaluate, objectively and realistically, the changes
in the growth, composition and structure of organised manufacturing sector
comprising activities related to manufacturing processes, repair services, gas
and water supply and cold storage. The Survey is conducted annually under the
statutory provisions of the Collection of Statistics Act 1953, and the Rules
framed there-under in 1959, except in the State of Jammu & Kashmir where it is
conducted under the State Collection of Statistics Act, 1961 and the rules
framed there-under in 1964. The ASI extends to the entire country except the
States of Arunachal Pradesh, Mizoram, Sikkim and Union Territory of Lakshadweep.
It covers all factories registered under sections 2m (i) and 2m (ii) of the
Factory Act, 1948. The survey also covers bidi and cigar manufacturing
establishments registered under Bidi and Cigar Workers (Condition of Employment)
Act, 1966 and employing 10 or more workers using power and 20 or more workers
not using power. Although the scope of the ASI was extended to all registered
manufacturing establishments in the country, establishments under the control of
the Defence Ministry, oil storage and distribution units, restaurants and cafes
and technical training institutions not producing anything for sale or exchange
were kept outside the coverage of the ASI. The latest available results of ASI
pertains to year 2009- 10 , field work for which was carried out during 2010-11.


The top five States in terms of employing persons in the
factory setor were Tamil Nadu, Maharashtra, Gujarat, Andhra Pradesh and
Karnataka respectively engaging about 18.9 lakh, 15.1 lakh, 11.6 lakh , 11.3
lakh and 8.9 lakh persons. These five States together had engaged more than half
(55.8%) of total manpower engaged by the factory sector of the country. The same
five States were also the major ones in terms of their percentage shares in
aggregate GVA – although their relative positions were different. Maharashtra
topped in terms of its percentage share (19.4%) in aggregate GVA, which was
followed by Gujarat (15.5%), Tamil Nadu (10.3%), Andhra Pradesh (7.1%), and
Karnataka (6.2%).


Out of 28 industries in terms of National Industrial
Classification (NIC) 2-digit codes under the coverage of the survey, major
employment providing industries in terms of percent share in overall employment
in factory sector were Food products (12%), Textiles (12%), Basic Metals (8%),
Wearing Apparel (7%), Other Non-Metallic Mineral Products (7%), Motor Vehicles,
Trailers & Semi-Trailers (5%), Chemicals & chemical Products (5%), Machinery &
Equipment Not Elsewhere Classified (5%), Fabricated Metal Products Except
Machinery & Equipment (5%), Rubber & Plastic Products (4%), Electrical Equipment
(4%), and Tobacco Products (3%).

Top six industries in terms of their percentage share in
aggregate GVA were Basic Metals, Coke and Refined Petroleum Products, Chemicals
and Chemical Products, Other Non-Metallic Mineral Products, Machinery and
Equipment Not Elsewhere Classified, and Food Products. They respectively had
share of about 13.0%, 10.1%, 9.2%, 6.6%, 6.4% and 6.2% in aggregate GVA.


Worldwide, the micro small and medium enterprises (MSMEs)
have been accepted as the engine of economic growth and for promoting equitable
development. The major advantage of the sector is its employment potential at
low capital cost. The labour intensity of the MSME sector is much higher than
that of the large enterprises. The MSMEs constitute over 90% of total
enterprises in most of the economies and are credited with generating the
highest rates of employment growth and account for a major share of industrial
production and exports. In India too, the MSMEs play a pivotal role in the
overall industrial economy of the country. In recent years the MSME sector has
consistently registered higher growth rate compared to the overall industrial
sector. With its agility and dynamism, the sector has shown admirable
innovativeness and adaptability to survive the recent economic downturn and
recession. The MSME sector in India constitutes enterprises with investment in
Plant & Machinery less than Rs ten Crore in case of manufacturing & less than Rs
five Crore in case of services sector.

As per available statistics (4th Census of MSME Sector
2006-07 ), this sector employs an estimated 59.7 million persons spread over
26.1 million enterprises. It is estimated that in terms of value, MSME sector
accounts for about 45% of the manufacturing output and around 40% of the total
export of the country. With respect to MSMEs have been collected/compiled for
the first time in 2006-07 and hence include both the manufacturing and service

This is Only Sample Material, To Get Full Materials Buy Hard Copy of This Book Click Here

Leave a Reply