Centre’s steps boosted growth

The Economic Survey applauds the government for several measures like simplification and rationalisation of procedures and processes for boosting investment, adopting a more open Foreign Direct Investment (FDI) policy and measures for creating a conducive business climate which has boosted industrial growth which rides high on the rise in manufacturing this fiscal.

It mentions the landmark initiatives like Make in India, Start Up India, Digital India, and Smart Cities, etc. that will provide further impetus to industries and the industrial sector is expec-ted to be the key driver of economic growth in the country. The growth of the industrial sector is estimated to be 7.3 per cent with manufacturing sector growing at 9.5 per cent.

Further, it says the industrial sector registered a growth of 8 per cent in the third quarter (Q3) of 2015-16 as compared to 3.8 per cent during the corresponding period of 2014. What the Survey does not say is that the growth figures as represented by the index of industrial production (IIP) are not consistent and is certainly not reflected in the GDP numbers.

This optimism in the manufacturing sector would have been more convincing had the Survey detailed the employment generated for the millions of unemployed as the manufacturing is the biggest generator of jobs. Nearly 50 per cent of households have only one working member and the unemployement figures are even more dismal.