Lok Sabha Question No. 579 (STARRED), answered on 2018-04-06
Subject: Higher Economic Growth Rate
Ministry: FINANCE
Asked by: SADHU SINGH

*579. PROF. SADHU SINGH:

Will the Minister of FINANCE be pleased to state:

- (a) whether attaining higher economic growth rate on a sustained basis is not guaranteed in the absence of an effective structural reform in the country;
- (b) if so, the details thereof;
- (c) whether sustaining a higher growth rate will require contribution from all domestic sectors and support from the global economy and if so, the details thereof; and
- (d) the measures taken/proposed to be taken by the Government in this regard?

## ANSWER

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

- (a) to (d): A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO. 579 BY SHRI SADHU SINGH DUE FOR ANSWER ON APRIL 06, 2018

- (a),  (b)  &  (c):  Attaining  and  sustaining  high  economic  growth  depends  on  number  of  factors  viz. structural, external, fiscal and monetary factors as well as the reform measures undertaken. However, there is no one to one correspondence of economic growth to each one of these factors. For example, during  2012-13  to  2015-16,  India's  growth  accelerated  when  growth  of  the  global  economy  was generally subdued.  The average growth of Gross Domestic Product (GDP) at constant market prices of  Indian  economy  in  last  4  years  (2014-15  to  2017-18)  is  estimated  to  be  7.3  per  cent,  which  is among the higher in the world. Economic Survey 2017-18 indicated the growth of GDP in 2018-19 could  be  in  the  range  of  7.0  to  7.5  per  cent,  with  higher  global  growth  along  with  the  reforms undertaken by the Government contributing towards the growth of economy.

## Government of India Ministry of Finance Department of Economic Affairs

## LOK SABHA STARRED QUESTION NO. 579

TO BE ANSWERED ON APRIL 06, 2018

## HIGHER ECONOMIC GROWTH RATE

(d): The agenda of promoting economic growth has received the utmost priority of the Government of India. The Government has launched a phased program for bank recapitalization. This entails infusion of capital to the public sector banks, 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.  Other measures  include  improving  delivery  of  services  through  help  of  technology  via  initiatives  like  Jan Dhan-Aadhar-Mobile (JAM) and Direct Benefit Transfers (DBT). During 2017-18, Rs. 1.89 lakh crore were  transferred  to  the  DBT  beneficiaries  under  a  number  of  Government  programmes.  The Government  of  India  has  taken  various  other  initiatives  to  boost  the  growth  of  the  economy which, inter-alia, include; fillip to manufacturing by initiating programmes like Make in India, concrete measures  for  transport and  power  sectors  as  well  as  other  urban  and  rural infrastructure, comprehensive reforms in the foreign direct investment  policy,  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. Budget 2018-19 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.

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