Sector specific reforms improve business environment : Survey

Speed Post News Network

New Delhi : Promoting inclusive employment-intensive industry, and building resilient infrastructure are vital factors for economic and development. The Government is taking several sector- specific measures in this direction. This was stated in the Economic Survey 2017-18 presented by Union Finance and Corporate Affairs Minister Arun Jaitley in Parliament on January 29, 2018.

Apart from structural reforms like Goods and Services Tax, Insolvency and Bankruptcy Code and measures to facilitate Ease of Doing Business, the Survey highlights that the Government has initiated sector specific reforms in Steel, Apparel, Leather and Power sectors to address specific challenges associated with each of these sectors. Various reforms undertaken by the Government over the last 3 years have been recognized by international rating agencies such as Moody’s Investor Service and up-gradation in the ranking of Ease of Doing Business of the World Bank Report 2018, the Survey further adds, according to a PIB release.

The Economic Survey 2017-18 further says that the Index of Industrial Production (IIP), which is a volume index with base year 2011-12, shows that the industrial output increased by 3.2 % during April-November 2017-18. This was a composite effect of robust growth in electricity generation at 5.2 % and moderate growth in both mining and manufacturing sectors at 3 %percent and 3.1 % respectively. The Index of Industrial Production (IIP) registered a 25-month high growth of 8.4 % with manufacturing growing at 10.2 %. 

According to the Economic Survey 2017-18, the Eight Core Infrastructure Supportive Industries, viz. Coal, Crude Oil, Natural Gas, Petroleum, Refinery Products, Fertilizers, Steel, Cement and Electricity attained a cumulative growth of 3.9 % during April-November, 2017-18. The production growth of Coal, Natural Gas, Refinery Products, Steel, Cement and Electricity was positive during this period. The steel production increased substantially, while the production of crude oil and fertilizers fell marginally during the period, the Economic Survey adds.

The Survey notes that nominal outstanding credit growth to industry turned positive to 1%  in November 2017 for the first time after witnessing negative growth since October 2016. Demand for funds by Indian firms, in the wake of the credit slowdown, has been somewhat met by alternative sources such as corporate bonds and commercial paper.

The pre-Budget Economic Survey states that the total Foreign Direct Investment inflow grew by 8 % i.e. USD 60.08 billion in 2016-17 compared to USD 55.56 billion of the previous year. In 2017-18 (April – September), the inflow of total FDI was to the quantum of USD 33.75 billion, according to the PIB release.

On the Ease of doing Business, the Economic Survey highlights that India has leapt 30 ranks over its previous rank of 130 in the World Bank’s latest Doing Business Report 2018. Credit rating company Moody’s Investors Service has also raised India’s rating from the lowest investment grade of Baa3 to Baa2. According to the Survey, the Government is investing massively on building infrastructure to support India’s long term growth.