8/7/2019 economic industrial policy
1/14
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
8/7/2019 economic industrial policy
2/14
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
8/7/2019 economic industrial policy
3/14
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
8/7/2019 economic industrial policy
4/14
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
8/7/2019 economic industrial policy
5/14
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
8/7/2019 economic industrial policy
6/14
2001-02- Industry Overview
IIP growth 2.7%
Structural & Cyclical factorsCapital Goods Negative FactorsUSA Sept 11 attack
8/7/2019 economic industrial policy
7/14
8/7/2019 economic industrial policy
8/14
2002-03 IIP Growth2002-03 Industrial Growth
Index of Industrial Production Growth Rate (%)
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
8/7/2019 economic industrial policy
9/14
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
8/7/2019 economic industrial policy
10/14
2003-04 IIP Growth
2002-03 Industrial Growth
Index of Industrial Production Growth Rate (%)
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
8/7/2019 economic industrial policy
11/14
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
8/7/2019 economic industrial policy
12/14
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
8/7/2019 economic industrial policy
13/14
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
8/7/2019 economic industrial policy
14/14
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