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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

                      Share in GVA   20.00%
                                                                   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

                   Source: Survey calculations based on MoSPI data. Data at current prices.
   287   288   289   290   291   292   293   294   295   296   297