Parliament Question: Growth of Core Infrastructure

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA UNSTARRED QUESTION NO. 242.

TO BE ANSWERED ON TUESDAY, THE 22ND JULY, 2025.

GROWTH OF CORE INFRASTRUCTURE

242. SHRI SUDAMA PRASAD:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

(a) whether the Government has taken note that the growth of India’s core infrastructure industries dropped to 0.7% in May 2025, the lowest in nine months, as per the Index of Eight Core Industries (ICI), if so, the details thereof;

(b) whether the Ministry has recognised the reasons for the slow down especially in high-weight sectors like electricity, signaling weak demand conditions and structural inefficiencies, if so, the details thereof;

(c) the corrective measures that have been planned to stabilise output across key sectors, especially with regard to monsoon-linked volatility and energy security; and

(d) whether this slow down indicate a failure of Make in India programme, if so, the details thereof along with the companies registered under this programme in last ten years and list of growth they have achieved for manufacturing sector? ANSWER वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

(a) to (d): The overall Index of Eight Core Industries (ICI) increased by 3.7% from April 2025 to May 2025. The year-on-year growth of overall ICI in May 2025 is 0.7%, mainly because of high base (overall ICI for May 2024 was 168.2). Further, the overall ICI for May 2025 is 2.7% higher than Annual ICI of 2024-25. The details are given at Annexure I.

Government has adopted a multi-pronged strategy to boost energy security which, inter alia, include demand substitution by promoting usage of natural gas as fuel/feedstock across the country towards increasing the share of natural gas in economy and moving towards gas based economy, promotion of renewable and alternate fuels like ethanol, second generation ethanol, compressed bio gas and biodiesel, refinery process improvements, promoting energy efficiency and conservation, efforts for increasing production of oil and natural gas through various policies initiatives, etc. For promoting the use ofCompressed Bio Gas (CBG) as automotive fuel, Sustainable Alternative Towards Affordable Transportation (SATAT) initiative has also been launched.

Government has also launched ‘Make in India’ initiative to make India a hub for manufacturing, design, and innovation. Presently, ‘Make in India’ focuses on 27 sectors including 15 manufacturing sectors, implemented across various Ministries and Departments and State Governments. Further, keeping in view India’s vision of becoming ‘Aatmanirbhar’ and to enhance India’s manufacturing capabilities and exports, Production Linked Incentive (PLI) schemes have been launched for 14 key sectors with an outlay of ₹1.97 lakh crore. These include mobile and specified electronic components, drug intermediaries & active pharmaceutical ingredients, medical devices, automobiles and auto components, pharmaceuticals drugs, specialty steel, telecom & networking products, electronic/technology products, white goods (ACs and LEDs), food products, textile products, high efficiency solar PV modules, advanced chemistry cell (ACC) battery, and drones and drone components. These schemes have the potential of significantly boosting production, increasing manufacturing output and contributing to faster economic growth in future. PLI schemes have generated ₹1.76 lakh crore in Investments, boosting manufacturing output to ₹16.5 lakh crore and creating over 12 lakh jobs.

The impact of PLI Schemes has been significant across various sectors in India.

These schemes have incentivized domestic manufacturing, leading to increased production, job creation and a boost in exports. The pharmaceuticals sector has witnessed cumulative sales of Rs. 2.66 lakh crore which includes exports of Rs. 1.70 lakh crore achieved in the first three years of the scheme.

The scheme has contributed to India becoming a net exporter of bulk drugs (2280 cr.) from net importer (-1930 cr.) as was the case in FY 2021-22. It has also resulted in significant reduction in gap between the domestic manufacturing capacity and demand of critical drugs.

Under the PLI Scheme for medical devices, 21 projects have started manufacturing of 54 unique medical devices, which include high end devices such as Linear Accelerator (LINAC), MRI, CT-Scan, Heart Valve, Stent, Dialyzer Machine, C-Arm, Cath Lab, Mammograph, MRI Coils, etc. The production of mobiles in value terms has increased by around 146% from INR 2,13,773 Cr in 2020-21 to INR 5,25,000 crore in 2024-25 as per industry association and DGCIS. During the same period, exports of mobile phones in value terms has increased by around 775% from INR 22,870 crore in 2020-21 to INR 2,00,000 crore in 2024-25.

Cumulative incentive amount of Rs. 21,534 crore have been disbursed as on

24.06.2025 under PLI Scheme for 12 sectors, namely Large Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing, White Goods, Drones & Drone Components, Specialty Steel, Textile products and Automobiles & Auto components.

The Government of India has approved 12 new project proposals under the National Industrial Corridor Development Programme (NICDP) with total project cost of ₹28,602 crore (incl. land cost). The objective of the programme is toexpand the industrial output, increase employment opportunities, provide better living and social facilities for the new and growing workforce by way of providing ‘plug n play’ infrastructure at the plot level and to facilitate the manufacturing investments into the country by providing quality, reliable, sustainable and resilient infrastructure for the industries.

Further, the Government, with an intent to build a strong ecosystem for nurturing innovation, startups and encouraging private investments in startup ecosystem of the country launched Startup India initiative on 16th January 2016.

Over 1.75 lakh startups have been recognised by DPIIT so far. Under the Startup India initiative, the Government is implementing three flagship Schemes, namely, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) to support startups at various stages of their business cycle.

The Government has also taken several initiatives under the flag-ship programme of Ease of Doing Business which includes Business Reform Action Plan, the Business-Ready assessment, Jan Vishwas and Reducing Compliance Burden on Businesses and Citizens. Government is also conducting Cost of Regulation exercise which aims to identify and reform the areas of pain-points in terms of administrative costs for the services.

The other major initiatives include Start-up India, National Single Window System, GIS enabled Land Bank, Foreign Direct Investment (FDI) policy reforms, PM Gati Shakti National Master Plan for integrated planning of multi- modal infrastructure, Project Monitoring Group to remove bottlenecks in setting up of major infrastructure projects, setting up of industrial parks, measures for reduction in compliance burden, rationalization of labour laws, introduction of Goods and Services Tax, reduction in the corporate tax rate, policy measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing Programme (PMP) and Quality Control Orders (QCOs), to name major ones.

*********ANNEXURE-I ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (d) OF THE LOK SABHA UNSTARRED QUESTION 242 FOR ANSWER ON 22.07.2025.

Trend of Overall Index of Eight Core Industries (ICI) and ICI for Electricity and Petroleum Refinery Products Sector.

Overall Index of Index of Petroleum Months/Years Index (Base Electricity Refinery Products 2011-12) Weight (%) 100.00 19.85 28.04 Apr-24 161.7 212.0 137.9 May-24 168.2 229.3 141.8 Jun-24 163.7 222.8 134.1 Jul-24 162.8 220.2 143.3 Aug-24 156.3 212.3 134.0 Sep-24 155.4 206.9 134.1 Oct-24 162.4 207.8 135.5 Nov-24 159.1 184.1 138.4 Dec-24 169.4 192.8 149.1 Jan-25 173.8 201.7 147.2 Feb-25 163.0 194.0 133.5 Mar-25 182.9 219.5 147.3 2024-25 (April 2024 to March 2025) 164.9 208.6 139.7 Apr-25 163.3 215.7 131.7 May-25 169.4 216.0 143.3 Growth of May 2025 over April 2025 (%) 3.7 0.1 8.8 Growth of May 2025 over May 2024 (%) 0.7 -5.8 1.1 Growth of May 2025 over 2024-25 (%) 2.7 3.5 2.5 ********