Lok Sabha Question No. 1359 (UNSTARRED), answered on 2018-02-09
Subject: National Policy for Economic Growth
Ministry: FINANCE
Asked by: ALOK SANJAR

## LOK SABHA

## UNSTARRED QUESTION NO. 1359

TO BE ANSWERED ON FEBRUARY 9, 2018

## NATIONAL POLICY FOR ECONOMIC GROWTH

† 1359.  SHRI ALOK SANJAR:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  has  formulated  any  National  Policy  to  attain  the  optimum sustainable level of economic growth and if so, the details thereof;
- (b) whether India is a favourite destination for the foreign investors;
- (c) if  so, the details thereof along with the names of three top investor countries investing in India; and
- (d) the  steps  being  taken  by  the  Government  to  attain  the  optimum  sustainable  level  of economic growth?

## ANSWER

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

(a) Government has not formulated any National Policy to attain the optimum sustainable level of economic growth.

- (b)  &  (c)  According  to  the  World  Investment  Report  2017  of  United  Nations  Conference  on Trade  and  Development  (UNCTAD),  the  favourite  FDI  destinations  are  the  United  States, China  and  India.  The  increase  in  inflow  of  Foreign  Direct  Investment  is  an  endorsement  of status of India as a preferred investment destination amongst global investors. FDI inflows for the  year  2015-16  were  US  $  55.56 billion, which  was  an  all-time  high.  However,  FDI  inflow increased further to US $ 60.08 billion in 2016-17, thereby scaling an even higher peak. During April-September  2017,  the  FDI  inflows  were  US  $33.74  billion.  Cumulatively  the  top  three investor  countries  (of  FDI  equity  inflows)  were  Mauritius,  Singapore  and  Japan  during  the period 2015-16, 2016-17 and 2017-18 (April-September).
- (d) The agenda of promoting economic growth has been the utmost priority of the government. The Government of India  has taken  various  initiatives  to  boost  the  growth  of  the  economy. Major initiatives in this direction, inter-alia , include; fillip to manufacturing, measures to improve the  ease  of  doing  business,  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. 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.  The  Insolvency  and  Bankruptcy

Code was enacted to achieve insolvency resolution in a time bound manner. 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. For highways development the Bharatmala Pariyojana has been launched.

The  Budget  2018-19  also  included  various  measures  to  provide  impetus  to  the  economic growth which, among others, include major push to infrastructure via higher allocation to rail & road  sector,  expansion  of  airport  capacity,  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 Micro, Small  and  Medium  Enterprises  (MSMEs)  filing  their  returns,  etc.  The  Budget  particularly focused on strengthening agriculture and rural economy via emphasis on rural housing, rural infrastructure,  keeping Minimum Support Prices (MSP) of unannounced kharif crops at least one and half times of their production cost; and emphasis on job creation. Government had also announced various measures in the Budget 2017-18 to promote growth in the economy which,  among  others,  includes  push  to  infrastructure  development  by  giving  infrastructure status to affordable housing, higher allocation to highway construction, and focus on coastal connectivity.

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