Lok Sabha Question No. 4966 (UNSTARRED), answered on 2016-12-16
Subject: Growth of Various Sectors
Ministry: FINANCE
Asked by: MUTHAMSETTI SRINIVASA RAO (AVNTHI)

- (a) the details of growth rate of various sectors during the last three years, sector-wise;
- (b) whether the Government is aware that performance of capital goods sector has shown a decline despite robust economic growth;
- (c) if so, the details thereof; and
- (d) the steps taken by the Government to encourage public spending and implementation of priority projects to revive capital goods sector?

## ANSWER

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

- (a)  The  growth  in  Gross  Value  Added  (GVA)  at  constant  (2011-12)  basic  prices  of  various sectors during the last three years is given in the following table:
- (b)  &  (c):  Economic growth, as defined by the growth in Gross Domestic Product at constant (2011-12) market prices stood at 7.2 per cent during the first half of 2016-17. According to the Index of Industrial Production (IIP) released by the Central Statistics Office, the production of capital goods sector contracted by 22.1 per cent during April-October 2016.
- (d):  Government's  industry-oriented  initiatives  like  the  Make-in-India  and  the  accompanying measures to facilitate investment and business are likely to boost the industrial sector, including the  capital  goods  sector.  Government's  focus  on  improving  the  quality  of  public  spending, coupled with the implementation of scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector that aims to make Indian capital goods industry globally competitive will help reviving the capital goods sector. The National Policy on Capital Goods Sector, approved by the Cabinet in May 2016, that envisages making India one of the top capital goods producing nations  of  the  world  by  increasing  production,  raising  exports  and  improving  technology  to advanced levels is also likely to strengthen the capital goods sector.

| Growth of GVA at Constant Basic Prices (Per cent)                                                                                     | Growth of GVA at Constant Basic Prices (Per cent)                                                                                     | Growth of GVA at Constant Basic Prices (Per cent)                                                                                     | Growth of GVA at Constant Basic Prices (Per cent)                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
| Sectors                                                                                                                               | 2013-14 (2nd RE)                                                                                                                      | 2014-15 (1st RE)                                                                                                                      | 2015-16 (PE)                                                                                                                          |
| Agriculture, forestry & fishing                                                                                                       | 4.2                                                                                                                                   | -0.2                                                                                                                                  | 1.2                                                                                                                                   |
| Industry                                                                                                                              | 5.0                                                                                                                                   | 5.9                                                                                                                                   | 7.4                                                                                                                                   |
| Services                                                                                                                              | 7.8                                                                                                                                   | 10.3                                                                                                                                  | 8.9                                                                                                                                   |
| GVA at basic prices                                                                                                                   | 6.3                                                                                                                                   | 7.1                                                                                                                                   | 7.2                                                                                                                                   |
| Source: Central Statistics Office (CSO) 2 nd RE: Second Revised Estimates 1 st RE: First Revised Estimates PE: Provisional Estimates. | Source: Central Statistics Office (CSO) 2 nd RE: Second Revised Estimates 1 st RE: First Revised Estimates PE: Provisional Estimates. | Source: Central Statistics Office (CSO) 2 nd RE: Second Revised Estimates 1 st RE: First Revised Estimates PE: Provisional Estimates. | Source: Central Statistics Office (CSO) 2 nd RE: Second Revised Estimates 1 st RE: First Revised Estimates PE: Provisional Estimates. |

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