Promotion of Manufacturing Sector (Download PDF)


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The growth of manufacturing sector as measured by the Index of Industrial Production (IIP) with base year 2011 - 12, has been consistently increasing over the past three years and the current year.

Image Of Indias Industrial Growth

Image Of India’s Industrial Growth

Image Of India’s Industrial Growth

Growth Rate (in Per Cent) of Manufacturing Sector, as Per Index of Industrial Production

Table Of Growth Rate

Table Of Growth Rate


2015 - 16

2016 - 17

2017 - 18

2018 - 19 (April-October) (Provisional)






Source: Central Statistics Office

Make in India Initiative

  • The Make in India initiative was launched in 2014, which aims at promoting India as an important investment destination and a global hub in manufacturing, design and innovation.

  • This initiative also aims to create a conducive environment for investment, development of modern and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between Government and industry through a positive mind set.

  • With the objective to create an assured domestic demand for manufacturers who are genuinely making in India, an enabling provision to promote domestic value addition in public procurement has been made by issuing the Public Procurement (Preference to Make in India) Order 2017.

Reason Behind Promotion of Manufacturing Sector

  • Overall performance of manufacturing sector is an interplay of several factors like domestic demand, demand for exports, level of investment and prevailing prices.

  • Several steps to boost domestic manufacturing are being taken as part of schemes such as Start-up India, Ease of Doing Business, Modified Industrial Infrastructure Upgradation Scheme, Business Reform Action Plan and Intellectual Property Rights (IPR) Policy.

  • Further, Foreign Direct Investment (FDI) policy and procedures have been simplified and liberalized progressively.

  • The Government has notified North East Industrial Development scheme (NEIDS) to continue benefits for the industrial units in North Eastern Region and Industrial Development Schemes for J&K, Himachal Pradesh and Uttarakhand.

  • The scheme for budgetary support to the eligible units located in the States of J&K, Himachal Pradesh, & North Eastern States including Sikkim under GST regime has also been notified.

Index of Industrial Production (IIP)

Image Of Industrial Production

Image Of Industrial Production

Image Of Industrial Production

  • It is an index which helps us understand the growth of various sectors in the Indian economy such as mining, electricity and manufacturing.

  • IIP is a short term indicator of industrial growth till the results from Annual Survey of Industries (ASI) and National Accounts Statistics (Eg: GDP) are available.

  • The base year of the index is given a value of 100.

  • The current base year for the IIP series in India is 2011 - 12.

  • So, if the current IIP reads 180, it means that there has been 80 % industrial growth compared to the base year, i.e. 2011 - 12.

  • Index of Industrial Production (IIP) is released by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation.

Image Of Impact Of IIP On India

Image Of Impact Of IIP On India

Image Of Impact Of IIP On India

- Published/Last Modified on: February 11, 2019

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