Industrial sector likely to grow by 11.8% this fiscal: Economic Survey

New Delhi: Gradual unlocking of the economy, record vaccinations, improvement in consumer demand, continued policy support towards industries by the Government in the form of Atma Nirbhar Bharat Abhiyan and further reinforcements in 2021-22 have led to an upturn in the performance of the industrial sector, the Economic Survey tabled in Parliament said on Monday.

Finance Minister Nirmala Sitharaman presented Economic Survey in Parliament on Monday. It said initiatives under AatmaNirbhar Bharat including structural and procedural reforms reinforce the performance of the industrial sector, expected to grow by 11.8 per cent in this financial year.

“Investor-friendly FDI policy sets up new records in FDI inflows registering highest-ever annual FDI inflow of 81.97 billion US $ in 2020-21,” the Survey said.

The gross bank credit to the industrial sector has recorded growth of 4.1 per cent, the Survey said, adding that Production Link Incentive schemes help reduce transaction costs and improve ease of doing business.

The Survey said the government has approved an outlay of Rs 76,000 crore for the development of the semiconductors and display manufacturing ecosystem.

Construction of National Highways and roads has registered an increase of 30.2 per cent over the previous year.

The Survey said that the growth of the industrial sector in the first half of 2021-22, was 22.9 per cent vis a vis the corresponding period of 2020-21 and is expected to grow by 11.8 per cent in this financial year.