Page 677 - ES 2020-21_Volume-1-2 [28-01-21]

304 Economic Survey 2020-21 Volume 2

CHAPTER AT GLANCE

¾ A strong V-shaped recovery of economic activity further confirmed in the IIP data. The IIP
& eight-core index further inched up to pre-COVID levels.

¾ The broad-based recovery in the IIP resulted in a growth of (-) 1.9 per cent in Nov-20
as compared to a growth of 2.1 per cent in Nov-19 and nadir of (-) 57.3 per cent in
Apr-20.

¾ Further improvement and firming up in industrial activities are foreseen with the
Government enhancing capital expenditure as highlighted in the fiscal policy chapter, the
vaccination drive and the resolute push forward on long pending reform measures. It is
pertinent to point out that the reforms undertaken in the country are probably one of the
most comprehensive among the major economies of the world.

¾ The GoI announced a remedial and reform package (Atmanirbhar Bharat Abhiyan)
comprising of stimulus of package amounting to 15 per cent of India’s GDP

¾ As per the Doing Business Report (DBR), 2020, the rank of India in the Ease of Doing
Business (EoDB) Index for 2019 has moved upwards to the 63 position amongst 190
rd
countries from a rank of 77 in 2018. India has improved its position in 7 out of 10
th
indicators, inching up to the international best practices. The DBR, 2020 acknowledges
India as one of the top 10 improvers, the third time in a row, with an improvement of 67
ranks in three years. It is also the highest jump by any large country since 2011.

¾ During FY20, total FDI equity inflows were US$49.98 billion as compared to US$44.37
billion during FY19. The similar number for FY21 (up to September-2020) was US$30.0
billion. The bulk of FDI equity flow is in the non-manufacturing sector leading to a
reduction in the share of manufacturing in the FDI flows. Within the manufacturing sector,
industries like automobile, telecommunication, metallurgical, non-conventional energy,
chemical (other than fertilizers), food processing, and petroleum & natural gas get the
bulk of FDI equity flows.

¾ With the objective of enhancing India’s manufacturing capabilities and exports, the GoI
has introduced the Production-Linked Incentive (PLI) Scheme in the 10 key sectors under
the aegis of Atmanirbhar Bharat. The scheme will be implemented by the concerned
ministries with an overall expenditure estimated at Rs.1.46 lakh crores and with sector
specific financial limits.