After revision of base year of National Accounts from 2004-05 to 2011-12, growth rate of different sectors is measured in terms of growth rate of Gross Value Added (GVA) at Basic Price in that sector.

The growth rate of GVA at Basic Price at constant (2011-12) prices in manufacturing during Q4 (January-March) 2014-15, Q1 (April-June) 2015-16 and Q2 (July-September) 2015-16 was 8.4%, 7.2% and 9.3% respectively.

The Government has taken a number of measures including administrative and regulatory, to accelerate the growth of manufacturing sector. For creation of conducive business environment, the Government is constantly simplifying and rationalizing the processes and the procedures for boosting investor sentiment, simplifying the policy and procedures for encouraging Foreign Direct Investment (FDI) and correcting the inverted duty structure.

Some of the recent initiatives also include pruning the list of industries that can be considered as defence industries requiring industrial license, two extensions of two years each permitted in the initial validity of three years of the industrial license to take it up to seven years, removal of stipulation of annual capacity in the industrial license, and deregulating the annual capacity for defence items for Industrial License.

For defence projects validity of industrial licenses has been increased to 15 years, which can be further increased to 18 years.

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