economic industrial policy

8/7/2019 economic industrial policy

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Industrial Policy Group 4

Balvinder - New Industrial policy

1991, Growth upto 1994-95Mr.Yashwant 1995-96 to 1999-2000

Ms.Preethi 2000-01 to 2004-05Ms.Reetu 2005-06 to 2009


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Growth Rates

Sectoral Industrial Growth

Index of Industrial Production Growth Rate (%)

Base 1993-94=100

Period Mining &Quarryin

g

Manufacturing Electricity

Overall

Weights (10.47) (79.36) (10.17) 100

2000-01 4.4 5.9 4.8 5.8


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2000-01 Industry Overview

Industrial growth 5 % vs 6.7Slow down- DomesticHigh Interest rate due to high fiscaldeficitAcceleration- Consumer DurablesDeceleration - Capital & Intermediate

goods , what it meant


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2000-01 Outlook & Decision

Indian Industry Efficient & CompetitiveRationalise Excise DutyRemoval Corporate tax SurchargeRemoval Income tax Surcharge

Reduction Interest RatesOpening FDI Further b to b ecommerce, Oil Refining,SEZ,Telecom [cond], Insurance 26%,FDI Proposal Time ReducedCap removed on Investment in Power Sector Off Venture Capital Domestic Venture capital Undertaking SEBI Regulator Reduction in Bureaucratic controlInfrastructure ConstraintTelecommunication , TransportCapital availability Competitive rate


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Growth RatesSectoral Industrial GrowthIndex of Industrial Production Growth Rate (%)

Base 1993-94=100

Period Mining &Quarrying

Manufacturing Electricity Overall

Weights (10.47) (79.36) (10.17) 100

2001-02 1.2 2.9 3.1 2.7

USE BASED CLASSIFICATION 2001-02


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2001-02- Industry Overview

IIP growth 2.7%

Structural & Cyclical factorsCapital Goods Negative FactorsUSA Sept 11 attack


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2002-03 IIP Growth2002-03 Industrial Growth


Base 1993-94=100Period Mining &

QuarryingManufacturing Electricity Overall

Weights 10.47 79.36 10.17 100

2002-03 5.8 6 3.2 5.7


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2002-03 Overview & Outlook

IIP Growth 5.7%Revival of Capital goods 10.5%Textile Industry turnaround 14.8% growth against 2.5% IN 01-02Capital & Consumer non durables sharp growth

OUTLOOK 2002-03Improvement in InfrastructureImprovement in ExportsLow & uniform custom tariffsMove to VAT

Labour laws reformFrame work for failure & winding up of companiesRecovery of US and EU Mkts after Sep 11,2001 attack


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2003-04 IIP Growth

2002-03 Industrial Growth


Base 1993-94=100Period Mining &

QuarryingManufacturing Electricity Overall

Weights 10.47 79.36 10.17 100

2003-04 5.2 7.4 5.1 7


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2003-04 Overview

IIP Growth 6.9%Mfg took away 80% with growth 7.2%Fall in Consumer Non durable12 out of 17 Industry group +growth

Key Industry like Steel & Cement grew to 6.9% and 6.1 resp.,5 Policy Problem inhibiting growthComparision with China

OUTLOOK 2003-04

External Liberalisation Peak duty down 20%Elimination of SAD 4%Duty cuts on Power Transmission & Project 25% to 10%Electrical Components or Optical Fiber cables from 15% / 5% to5% / Nil


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2004-05 OverviewIIP 8.4% - Lot of up and downHigher IIP after 1995-96Capital Goods Grew 13.3% [inv act]Consumer Goods Grew [ low int]Agriculture negative Growth 1.1%Policy Initiatives for SSIInitiatives for SSICritical Drivers-Low Interest rate, Infrastructure DevelopmentNeed to Improve Coordination between State & Center

Removal of constraint for Bright Industrial sector


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Summary 00 - 05Sectoral Industrial Growth

Index of Industrial Production GrowthRate (%)

Base 1993-94=100

Period Mining

&Quarrying

Manufa

cturing

Electr

icity

Overal

l

Weights

10.47 79.36 (10.17)

(100)

2000-01 4.4 5.9 4.8 5.8

2001-02 1.2 2.9 3.1 2.7

2002-03 5.8 6 3.2 5.7

2003-04 5.2 7.4 5.1 7

2004-05 4.4 9.2 5.2 8.4

00-01 & 01-02 wasmarked with slowdown

2002-03 startedwith consolidation2003-04 kept theBuoyancy2004-05 saw a

Growth after 1995-96


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Growth Use BasedClassification 2000 to 2005

Growth rates of Industrial Production by Use based Classification

Sectors Weight 99- 00 00- 01 01-02 02-03 03-04 04-05

Basic Goods 35.57 5.5 3.7 2.6 4.9 5.4 5.5

Capital Goods 9.30 6.9 1.8 -3.4 10.5 13.6 13.9IntermediateGoods 26.50 8.8 4.7 1.5 3.9 6.4 6.1

Consumer Goods 28.70 5.7 8 6 7.1 7.1 11.71. Consumer

Durable 5.40 14.1 14.5 11.5 -6.3 11.6 14.4

2. Consumer NonDurable 23.30 3.2 5.8 4.1 12 5.8 10.8

IIP[Index of Industrial

Production 100 6.7 5 2.7 5.7 7 8.4

economic industrial policy

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