Page 292 - economic_survey_2021-2022

266 Economic Survey 2021-22

with supportive policy initiatives which included easing of supply side bottlenecks through
easier access to credit especially, emergency credit line guarantee scheme to MSMEs, relief to
the real estate sector, production-linked incentives for 14 champion sectors and other direct tax
measures, the industrial growth started to recover. In the past few months, record vaccinations as
well as improvement in consumer demand and business confidence have had a positive impact
on the performance of the industrial sector. This period also saw a boost to digital infrastructure,
structural reforms in telecommunications and big-ticket disinvestment in Air India. The pace of
this recovery and further growth is likely to continue due to consistent efforts of the government
to bring in various structural, fiscal and infrastructural reforms in addition to a slew of measures/
schemes like the production linked incentive scheme (PLI) to support industries .

8.2 The gross value addition at constant prices (GVA) in the industrial sector grew at the
compound annual growth rate (CAGR) of 4.53 percent between 2011-12 and 2019-20 while
total GVA grew by CAGR of 5.63 percent over the same period.The share of the industrial
sector in the nominal GVA(at current prices) was 25.9 percent in 2020-21.With the industrial
sector recovering and expected to grow at 11.8 percent, as per advance estimates for 2021-22 by
National Statistical Office, industry’s share is expected to increase to 28.2 percent. (Figure 1).

8.3 Manufacturing, with an average share of 16.3 percent in nominal GVA over the last decade,
has a dominant presence within the industrial sector. In 2020-21, the share of manufacturing fell
to 14.4 percent but is expected to improve to15.3 percent in 2021-22. The share of electricity has
been showing an increasing trend since 2012-13 and was 2.7 percent 2020-21. Figures 1 and 2
show value added in the industrial sector and growth respectively. In 2020-21, electricity, gas,
water supply and other utility services was the only sub sector that had experienced a positive
growth of 1.9 percent (table 1). In 2021-22, the manufacturing sector is expected to grow by
12.5 percent, mining and quarrying by 14.3 percent, construction by 10.7 percent and electricity,
gas and water supply by 8.5 per cent. This improvement is on the back of industrial contraction
in the corresponding period of the last financial year.

Figure 1: Share of Industry and its components in Gross value added

35.00%
30.00%
25.00%
Share in GVA 20.00%
15.00%
10.00%
5.00%
0.00%
3rd RE 2nd RE 1st RE PE 1st AE
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Mining & quarrying Manufacturing
Electricity, gas, water supply & other utility services Construction
Industry

Source: Survey calculations based on MoSPI data. Data at current prices.