Lok Sabha Question No. 2922 (UNSTARRED), answered on 2018-08-03
Subject: Growth Rate
Ministry: FINANCE
Asked by: ANURAG SINGH THAKUR

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 2922

TO BE ANSWERED ON AUGUST 03, 2018

## GROWTH RATE

## 2922. SHRI ANURAG SINGH THAKUR:

Will the Minister of FINANCE be pleased to state:

(a) the growth rate registered in the fourth quarter results of GDP data;

(b) whether the structural reform policies such as demonetisation, Goods and Services Tax and digitization have contributed to this development, if so, the details thereof; and

(c)  the  extent  to  which  the  double  digit  growth  has  benefited  the  construction  sector,  FDI,  expansion  in manufacturing and financial inclusion schemes with regard to employment?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PON RADHAKRISHNAN)

- (a) As per the quarterly estimates of Gross Domestic Product (GDP) released by Central Statistics Office on 31 st May 2018, the growth rate of GDP at constant (2011-12) prices was 7.7 per cent for the fourth quarter (January to March 2018) of 2017-18.
- (b) GDP of a country depends on a number of factors viz. structural, external, fiscal and monetary factors, hence it is difficult to pinpoint the impact of any specific measure. The Government of India has taken various steps to boost the growth of GDP in the economy. These, inter-alia, include; fillip to manufacturing, concrete measures for transport and power sectors as well as other urban and rural infrastructure, comprehensive reforms in the foreign direct  investment  policy  and  special  package for  textile  industry,  push  to  infrastructure  development  by  giving infrastructure  status  to  affordable  housing  and  focus  on  coastal  connectivity.  For  highways  development,  the Bharatmala Pariyojana has been launched. The Union Cabinet approved a significant increase in the Minimum Support Prices (MSPs) for all kharif crops for 2018-19 season, in order to provide major boost to farmer's income. The government has launched a phased program for bank recapitalization. This entails infusion of capital to the public  sector  banks,  to  the  tune  of  about  Rs.  2.11  lakh  crore  over  two  financial  years,  which  is  expected  to encourage banks to enhance lending. The Insolvency and Bankruptcy Code was enacted to achieve insolvency resolution  in  a  time  bound  manner.  To  implement  the  Code,  the  National  Company  Law  Tribunal  was established.  The  introduction  of  the  Goods  and  Services  Tax  (GST)  has  provided  a  significant  opportunity  to improve growth momentum by reducing barriers to trade, business and related economic activities. Budget 201819 included various measures to provide a push to the economy, which among others, include major push to infrastructure via higher allocation to rail & road sector, reduced corporate tax rate of 25 per cent for companies with turnover up to Rs. 250 crore which is expected to help 99 per cent of MSMEs, etc.
- (c) Does not arise. The real growth of the economy has not been in double digits during 2017-18.

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