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Lower manufacturing eases India's Dec 2021 industrial production sequentially, YoY

New Delhi, February 11 (IANS): Subdued manufacturing growth as well as unfavourable base eased India's industrial output sequentially as well as on a yearon-year basis in December 2021, official data showed on February 11.

The Index of Industrial Production (IIP) for December 2021 rose by only 0.4 per cent from a rise of 1.34 per cent reported for November 2021.

Similarly, the production rate was lower on a year-on-year basis. In December 2020, the IIP had risen by 2.2 per cent.

"For the month of December 2021, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at 138," said the Ministry of Statistics and Programme Implementation.

"The Indices of Industrial Production for the 'Mining, Manufacturing and Electricity' sectors for the month of December 2021 stand at 120.3, 138.8 and 162.5, respectively."

On a YoY basis, the mining excavation output grew by 2.6 per cent from (-) 3 per cent in December 2021. However, manufacturing production slipped by 0.1 per cent from a rise of 2.7 per cent and electricity generation rose at a slower rate of 2.8 percent from 5.1 per cent.

Among the major use-based segments, the December data, on a YoY basis, showed that manufacturing of primary goods grew by 2.8 per cent from 0.4 per cent, whereas capital goods production fell by 4.6 per cent from a rise of 2.2 per cent, and intermediate goods increased at a slower rate of 0.3 per cent from 2.3 per cent.

Similarly, the production of infrastructure or construction goods rose at a slower rate of 1.7 percent from 3.1 percent.

"Belying our expectation of a mild uptick, the YoY IIP growth crumbled to a marginal 0.4 per cent in December 2021, partly on account of an unfavourable base," ICRA Chief Economist Aditi Nayar said.

"The contraction in capital goods, consumer durables and consumer non-durables, along with a feeble growth in the remaining categories ranging from 0.3 per cent to 2.8 percent in December 2021, add heft to the MPC's decision to remain growth supportive in light of the incomplete recovery."

India Ratings and Research's Principal Economist, Sunil Kumar Sinha, said: "Lacklustre IIP growth puts a question mark on the current recovery. It also indicates that policy makers may have to take more measures to support industrial recovery as high commodity prices have made most inputs, particularly fuel and materials quite expensive."

"IIP growth in December 2021 is the lowest in four months, with manufacturing being the major drag accounting for 77.6 percent weight in IIP."

Half of India's FDI since 2000 in last 7 years: Govt

New Delhi, February 12 (IANS): India, in the last seven financial years (2014-21), has received FDI inflow worth $440.27 billion which is nearly 58 per cent of the total FDI reported in the last 21 years ($763.83 billion) the Parliament was told on Friday.

India registered its highest ever annual FDI inflow of $81.97 billion (provisional figures) in 2020- 21 despite the Covid-related disruptions, Minister of State for Commerce and Industry Anupriya Patel told the Rajya Sabha in a written reply.

This indicates increasing inclination of global companies to set up their business in India, she added.

India jumped to 63rd place in World Bank's Ease of Doing Business ranking as per World Bank's Doing Business Report (DBR) 2020 from a rank of 142 in 2014.

Keeping in view India's vision of becoming 'Atmanirbhar' and to enhance its manufacturing capabilities and exports, an outlay of Rs 1.97 lakh crore (over $26 billion) has been announced in Union Budget 2021-22 for Production Linked Incentives(PLI) schemes for 14 key sectors of manufacturing, Patel said.

An Empowered Group of Secretaries has been constituted to fast track investments in the country. Similarly, Project Development Cells (PDCs) have been set up across Central Ministries/Departments to handhold investors and spur sectoral and economic growth.

Further, a GIS-enabled India Industrial Land Bank has been launched to help investors identify their preferred location for investment. A National Single Window System (NSWS) has also been soft launched in September 2021 to facilitate clearances for investors, the Minister said.

Exports from IT/IteS in SEZs over Rs 5 lakh crore in 2020-21: Govt

New Delhi, February 12 (IANS): Exports by information Technology and Information Technology enabled Services (IT/ ITeS) units in SEZs touched Rs 5.1 lakh crore in 2020-21 as the government has taken various initiatives to promote the sector, the Parliament was informed on February 12.

The Centre has approved National Policy on Software Products-2019 with an aim to develop India as the global software product hub, driven by innovation, improved commercialisation, sustainable Intellectual property, promoting technology start-ups and specialised skill sets, for development of the sector, based on ICT, Minister of State for Commerce and Industry Anupriya Patel told the Rajya Sabha in a written reply.

The objective of the policy is to create a robust Indian software product development ecosystem leading to a ten-fold increase in India's share of the global software product market and so as to generate direct and indirect employment for 3.5 million people by 2025, she added.

After 70 yrs, J&K products get global recognition; GI tags part of new export policy

New Delhi/Srinagar, February 12 (IANS): The carpet industry in Jammu and Kashmir has got a shot in the arm with the Geographical Indication (GI) tag. The Indian Institute of Carpet Technology (IICT) has introduced QR Code mechanism for the purpose of testing and certification of hand-knotted carpets manufactured in Kashmir under Geographical Indication of Goods Act 1999.

The GI tag is affixed with certain products that correspond to a specific geographical location or origin. Generally, the location or the place is historically reputed for an outstanding quality product. The tag denotes geographical genuineness and ensures native sourcing of the product.

Hand-knotted Kashmiri carpets famous for their intricate and colourful floral patterns are all set to invade the markets across the globe with GI tag being the proof of their authenticity.

Kashmir Chamber of Commerce and Industry (KCCI) welcomed the step of the UT government, under Lieutenant Governor Manoj Sinha, for introducing GI tags to famed hand-knotted Kashmiri carpets. It stated that the QR code based mechanism, first of its kind in the country, for certification and labeling can help in checking the cheating that has badly dented the carpet Industry in Kashmir.

After J&K's transition into a Union Territory nine products --Kani Shawl, Kashmir Pashmina, Kashmir Sozini Craft, Kashmir Papier-Macihe, Kashmir Walnut Wood Carving, Khatamband, Kashmiri Hand Knotted Carpets and Kashmir Saffron and Basmati -- have been issued GI tag to fight counter branding.

The GI powered saffron and basmati rice have got world wide acceptance and have helped in preserving its quality as well. Other products that are in the list of GI tagging include Kashmir's indigenous rice types, Honey, and few spices. The GI tagging is vital to get legal protection for the product.

The concept of GI-tagging was introduced soon after August 5, 2019-when the Centre announced its decision to abrogate J&K's special status. The idea was to take the products manufactured in the Union Territory to the world.

The GI tags checked the duplicity of the products and also helped in reviving the crafts that are witnessing downfall for the past many years now. The GI tagging of J&K products has saved an individual from getting cheated and has ensured that authentic products only are sold in the market.

Besides issuing GI tags the government reduced procedural formalities for export transactions by way of fast processing of export-related documents, like issuance of licenses and import, export codes. Steps were taken to integrate the Single Window Interface for Trade system with a Single Desk Portal.

During the past two years Jammu & Kashmir Trade and Export Policy has been restructured in line with the suggestions given by the Federation of Indian Export Organisations.

People coming closer to government

The promises that were made to the people of Jammu and Kashmir on August 5, 2019, by Prime Minister, Narendra Modi and Union Home Minister, Amit Shah, are being fulfilled at a fast pace. The steps taken by the Centre have helped to end the alienation. People are coming closer to the government and are realizing that for the past 70-years they were misled by being told that J&K's special status is a shield. The past two years have proven beyond doubt that the so-called special status was no shield. It was an impediment that deprived J&K people from getting the benefits they deserved. The Article 370, which gave so-called special privileges to the natives of J&K, in fact prevented them from even getting the basic rights as Indian citizens.

The Kashmir based politicians, who every now and then, talk about "getting everything back" need to tell the people why they failed to make J&K self-reliant. What prevented them from taking J&K products to the world? Had they paid some attention towards the governance, by now many products of J&K would have got the GI tag. The poor craftsmen and artisans, who are still struggling to make their ends meet, would not have given up their traditional skills which they inherited from their ancestors. They kept on raising the issue about duplicate products being sold in the markets. But no one paid any heed towards their concerns.