Economic Survey 2023: Industries Witness Modest Growth Of 4.1 per cent In FY23

The Survey highlighted that the PLI schemes are set to unlock manufacturing capacity, boost exports, reduce import dependence and lead to job creation for both skilled and unskilled labour

The Economic Survey tabled in Parliament on Tuesday said that the industries witnessed modest growth of 4.1 per cent in FY23 compared to the strong growth of 10.3 per cent in FY22 on accounts of input cost-push pressures, supply chain disruptions, and the China lockdown impacting the availability of essential inputs and slowing the global economy.

The Survey highlighted that the PLI schemes are set to unlock manufacturing capacity, boost exports, reduce import dependence and lead to job creation for both skilled and unskilled labour. The Survey was optimistic that easing input prices and conducive demand conditions will support overall Industrial growth.

The Overall Gross Value Added (GVA) by the industrial sector rose 3.7 per cent, based on data available for the first half of the FY23, which is higher than the average growth of 2.8 per cent achieved in the first half of the last decade, stated the Economic Survey 2022-23 presented by the Union Minister for Finance Nirmala Sitharaman in Parliament.

Some key highlights for industries in Economic Survey 2023

• Overall Gross Value Added (GVA) by the Industrial Sector (for the first half of FY22-23) rose 3.7 per cent, which is higher than the average growth of 2.8 per cent achieved in the first half of the last decade.


• Robust growth in Private Final Consumption Expenditure, export stimulus during the first half of the year, increase in investment demand triggered by enhanced public capex, and strengthened bank and corporate balance sheets have provided a demand stimulus to industrial growth.


• The supply response of the industry to the demand stimulus has been robust.


• PMI manufacturing has remained in the expansion zone for 18 months since July 2021, and the Index of Industrial Production (IIP) grows at a healthy pace. 


• Credit to Micro, Small, and Medium Enterprises (MSMEs) has grown by an average of around 30 per cent since January 2022, and credit to large industries has been showing double-digit growth since October 2022.


• Electronics exports rise nearly threefold, from $4.4 billion in FY19 to $11.6 Billion in FY22.


• India has become the second-largest mobile phone manufacturer globally, with the production of handsets going up from 6 crore units in FY15 to 29 crore units in FY21.


• Foreign Direct Investment (FDI) flows into the Pharma Industry has risen four times, from $180 million in FY19 to $699 million in FY22. 


• The Production Linked Incentive (PLI) schemes were introduced across 14 categories, with an estimated capex of Rs 4 lakh crore over the next five years, to plug India into global supply chains. Investment of Rs 47,500 crores has been seen under the PLI schemes in the FY22, which is 106 per cent of the designated target for the year. Production/sales worth ₹3.85 lakh crore and employment generation of 3.0 lakh have been recorded due to PLI schemes. 


• Over 39,000 compliances have been reduced and more than 3500 provisions decriminalised as of January 2023.