Lok Sabha Question No. 2795 (UNSTARRED), answered on 2016-12-02
Subject: Economic Growth Rate
Ministry: FINANCE
Asked by: AJAY (TENI) MISRA, RABINDRA KUMAR JENA, PONNUSAMY VENUGOPAL

- (a) whether the Indian economy has been able to ward off the effects of global financial crisis and made a steady progress towards a stable growth and if so, the details thereof and the reasons therefor;
- (b) whether the economic growth rate has registered a in increase and if so, the details thereof during the last three years;
- (c) the estimated growth rate for the current financial year;
- (d) whether there has been surge in the investment inflows thereby pushing the growth rate; and
- (e) if so, the details of the domestic and foreign investments during the last three years and the current year?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

- (a)   As  per  the  Economic  Survey  2015-16,  despite  weak  growth  of  the  world  output  and  global  headwinds,  the  India's growth story has largely remained positive on the strength of domestic absorption. The country has registered robust pace of  economic  growth  on  account  of  number  of  measures  to  boost  growth  in  different  sectors  of  the  economy  viz.  rural infrastructure,  fillip  to  manufacturing  and  infrastructure  through  fiscal  incentives  and  other  initiatives  like  Make  in  India initiative, liberalised foreign direct investment policy in various sectors, improved ease of doing business, etc.
- (b) & (c) The economic growth measured in terms of gross domestic product (GDP) at constant (2011-12) market prices was 6.6 per cent, 7.2 per cent and 7.6 per cent respectively for the year 2013-14, 2014-15 and 2015-16. The growth in GDP at constant (2011-12) market prices during the first half of 2016-17 was 7.2 per cent.
- (d) & (e) The details of foreign direct investment (FDI) inflows during each of the last three years and current year are as follows.

| Foreign Direct Investment (FDI) Inflows (US Dollar Billion)   | Foreign Direct Investment (FDI) Inflows (US Dollar Billion)   |
|---------------------------------------------------------------|---------------------------------------------------------------|
| Year                                                          | FDI Inflows                                                   |
| 2013-14                                                       | 43.6                                                          |
| 2014-15                                                       | 51.8                                                          |
| 2015-16                                                       | 59.9                                                          |
| 2016-17 (April-June)                                          | 14.2                                                          |
| Source: Reserve Bank of India                                 | Source: Reserve Bank of India                                 |

The details of the gross fixed capital formation, which is also called fixed investment, during each of the last three years and the first half of the current year are as follows.

| Gross Fixed Capital Formation (GFCF) at current prices (Rs. crore)   | Gross Fixed Capital Formation (GFCF) at current prices (Rs. crore)   |
|----------------------------------------------------------------------|----------------------------------------------------------------------|
| Year                                                                 | GFCF                                                                 |
| 2013-14                                                              | 3564320                                                              |
| 2014-15                                                              | 3844366                                                              |
| 2015-16                                                              | 3972401                                                              |
| 2016-17 (April-September)                                            | 1979801                                                              |
| Source: Central Statistics Office                                    | Source: Central Statistics Office                                    |

The economic growth measured in terms of gross domestic product (GDP) at constant (2011-12) market prices was 6.6 per cent, 7.2 per cent and 7.6 per cent respectively for the year 2013-14, 2014-15 and 2015-16.