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Underlining series of measures taken by the Government to improve the economic situation and convert the disruption caused by COVID 19 into an opportunity for growth, the Minister of State for Commerce and Industry, Som Parkash has said that the growth of manufacturing sector was adversely affected due to COVID-19 pandemic, which has shown positive growth in double digits in the Financial Year 2021-2022. The Minister said that the annual growth rate of Manufacturing Sector as per Index of Industrial production (IIP), with base year 2011-12, was 11.8% during 2021-22 as against a contraction of 9.6% in 2020-21.

Som Parkash further noted that the Government of India has undertaken various steps to promote manufacturing sector and to boost domestic and foreign investments in India. These include introduction of Goods and Services Tax, reduction in Corporate tax, interventions to improve ease of doing business, FDI policy reforms, measures for reduction in compliance burden, policy measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing Programme (PMP), to name a few.

Besides, the Minister said that keeping in view India’s vision of becoming ‘Atmanirbhar’ and to enhance India’s Manufacturing capabilities and Exports, an outlay of Rs 1.97 lakh crore (over $26 billion) has been announced in Union Budget 2021-22 for PLI schemes for 14 key sectors of manufacturing, starting from fiscal year (FY) 2021-22. With the announcement of PLI Schemes, significant creation of production, skills, employment, economic growth and exports is expected over the next five years and more.