The rate of growth of sales of the listed manufacturing companies in the private sector declined from an average of 28.8% in the first quarter of 2010-11 to 11.4% in the second quarter of 2012-13 and the ratio of net profit to sales also declined.
Giving this information in written reply to a question in the Rajya Sabha, Shri Sachin Pilot, Minister for Corporate Affairs, said that several measures have been initiated by the Government to uplift the overall business sentiment, boost investment and strengthen industry.
These include, inter alia, announcement of the National Manufacturing Policy, implementation of Delhi Mumbai Industrial Corridor Project, liberalization of Foreign Direct Investment (FDI) policy, setting up of the e-BiZ to promote ease of doing business and enactment of the Companies Act, 2013.
Further, the Cabinet Committee on Investment has been set up to monitor investment proposals as well as projects under implementation, including stalled projects, and guide decision making in order to remove bottlenecks and quicken the pace of implementation.
In his Budget Speech for the year 2013-14, the Finance Minister has also proposed to introduce an investment allowance for new high value investments to attract new investment and to quicken the implementation of projects.
Impact assessment of these measures has not been conducted.