Lok Sabha Question No. 2217 (UNSTARRED), answered on 2017-07-28
Subject: GDP Share
Ministry: FINANCE
Asked by: RABINDRA KUMAR JENA

- (a) the current share of Gross Domestic Product (GDP) of the organised and unorganised sector and the comparative change observed during the last three years;
- (b) the  share  of  the  corporate  and  non  corporate  sectors  in  Net  Domestic  Product  (NDP)  and Gross Domestic Product during the last three years;
- (c) the Gross Domestic Savings and Gross Domestic Capital Formation as percentage of GDP of Government, Private Corporate and Household Sector during the said period;
- (d) whether the Government is aware that partnership and proprietorship firms form a bulk of the production  and  savings  in  our  country  whereas  the  focus  of  policy  is  skewed  toward  the corporate sector, if so, the details thereof;
- (e) the total Gross Domestic Savings and sector-wise split during the last three years; and
- (f) the  percentage  of  Indians  who  invest  in  stock  market  and  the  change  in  the  pattern  of investments observed during the last ten years?

## ANSWER

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

- (a)  As  per  the  latest  data  available  from  Central  Statistics  Office  (CSO),  the  share  of  Organised sector (Corporations and General Government) and Unorganised sector (Household including NonProfit Institutions serving Households) in Gross Value Added at basic prices (GVA, which is Gross Domestic Product minus Net Indirect Taxes on products) is as follows:
- (b)    As  per  the  latest  data  available  from  the  CSO,  the  share  of  the  corporate  and  non  corporate (comprising household  and general  government)  sectors  in  GVA  and  Net  Value  Added  (NVA)  is given in the following tables.

| Percentage Share in totalGVA at current prices   | Percentage Share in totalGVA at current prices   | Percentage Share in totalGVA at current prices   | Percentage Share in totalGVA at current prices   |
|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
| Sector                                           | 2013-14                                          | 2014-15                                          | 2015-16                                          |
| Organised Sector                                 | 54.2                                             | 55.3                                             | 56.4                                             |
| Unorganised Sector                               | 45.8                                             | 44.7                                             | 43.6                                             |

| Percentage Share in GVA at current prices   | Percentage Share in GVA at current prices   | Percentage Share in GVA at current prices   | Percentage Share in GVA at current prices   |
|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|
| Sector                                      | 2013-14                                     | 2014-15                                     | 2015-16                                     |
| Corporate                                   | 44.7                                        | 45.7                                        | 46.8                                        |
| HH                                          | 45.8                                        | 44.7                                        | 43.6                                        |
| GG                                          | 9.4                                         | 9.5                                         | 9.6                                         |

Note:  GG:  General  Government;  HH:  Households  including  Non-Profit  Institutions  serving  Households; Corporate: Non-Financial Corporations and Financial Corporations

Figures may not add up to 100 due to rounding off.

| Percentage share in NVA at current prices   | Percentage share in NVA at current prices   | Percentage share in NVA at current prices   | Percentage share in NVA at current prices   |
|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|
| Sector                                      | 2013-14                                     | 2014-15                                     | 2015-16                                     |

| Corporate   |   43.5 |   44.5 |   45.6 |
|-------------|--------|--------|--------|
| HH          |   47.1 |   45.9 |   44.7 |
| GG          |    9.4 |    9.6 |    9.7 |

- (c)  Gross Domestic Savings and Gross Domestic Capital Formation of Public, Private Corporate and Household Sectors as percentage of Gross Domestic Product (GDP) is given in the following tables:

| Savings as a percentage of GDP at current prices   | Savings as a percentage of GDP at current prices   | Savings as a percentage of GDP at current prices   | Savings as a percentage of GDP at current prices   |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
|                                                    | 2013-14                                            | 2014-15                                            | 2015-16                                            |
| Gross Savings                                      | 32.1                                               | 33.1                                               | 32.3                                               |
| Public                                             | 1.0                                                | 0.9                                                | 1.3                                                |
| Private corporates                                 | 10.7                                               | 11.7                                               | 11.9                                               |
| Household                                          | 20.3                                               | 20.5                                               | 19.2                                               |

Note: Public sector includes general government, public financial and non-financial corporations

Source: Calculated from National Accounts Statistics 2017, Ministry of Statistics and  Programme Implementation

| Gross Capital Formation of GDP at current prices   | Gross Capital Formation of GDP at current prices   | Gross Capital Formation of GDP at current prices   | Gross Capital Formation of GDP at current prices   |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
|                                                    | 2013-14                                            | 2014-15                                            | 2015-16                                            |
| Gross Capital Formation                            | 33.8                                               | 34.4                                               | 33.3                                               |
| Public                                             | 7.1                                                | 6.8                                                | 7.5                                                |
| Private corporates                                 | 12.9                                               | 13.3                                               | 13.0                                               |
| Household                                          | 12.6                                               | 12.8                                               | 10.9                                               |

Note: Public sector includes general government, public financial and non-financial corporations Source: Calculated from National Accounts Statistics 2017, Ministry of Statistics and  Programme Implementation

- (d)  Proprietary  and  partnership  firms  are  duly  accounted  for  in  computations  of  national  accounts statistics. However, the estimates of production and savings in respect of Proprietary and Partnership firms are not available separately. Government gives due priority to promote MSME (Micro, Small and  medium  enterprises)  and  has  taken  various  measures inter-alia including,  increase  in  loans covered under the Credit Guarantee Scheme for MSEs from 1 crore to 2 crore, launch of Amended Technology Upgradation Fund Scheme. Union Budget 2017-18 has reduced income tax rate to 25 per cent for MSME companies having turnover of up to Rs 50 crore. Government has also announced a special  package  in  Textile  and  Apparel  sector  including  a  slew  of  labour-friendly  measures  to promote employment generation, economies of scale and boost exports.
- (e)  Estimates  of  Gross  Saving  and  split  as  per  institutional  sectors  at  current  prices  for  the  years 2013-14, 2014-15 and 2015-16 are as follows:

| Gross Savings and Institutional Sector wise (Rs. Crore)   | Gross Savings and Institutional Sector wise (Rs. Crore)   | Gross Savings and Institutional Sector wise (Rs. Crore)   | Gross Savings and Institutional Sector wise (Rs. Crore)   |
|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|
|                                                           | 2013-14                                                   | 2014-15                                                   | 2015-16                                                   |
| Gross Savings (total)                                     | 3608193                                                   | 4119766                                                   | 4418919                                                   |
| Gross Saving of which:                                    |                                                           |                                                           |                                                           |
| Public non-financial corporations                         | 126250                                                    | 127481                                                    | 134139                                                    |

| Private non-financial corporations   |   1077286 |   1285463 |   1510770 |
|--------------------------------------|-----------|-----------|-----------|
| Public financial corporations        |    163184 |    169317 |    176889 |
| Private financial corporations       |    129901 |    169873 |    110914 |
| General government                   |   -173729 |   -188052 |   -135324 |
| Households including NPISH           |   2285301 |   2555683 |   2621531 |

(f) As per the information from Securities and Exchange Board of India (SEBI), while the exact data is  not  available,  the  data  is  available  on  the  number  of  mutual  fund  folios  and  number  of  Demat Accounts  with  National  Securities  Depository  Limited  (NSDL)  and  Central  Depository  Services India Ltd (CDSL), which is given in the following table.

| As on                          |   31.03.17 |   31.03.16 |   31.03.15 |   31.03.14 |   31.03.13 |   31.03.12 |   31.03.11 |   31.03.10 |   31.03.09 |   31.03.08 |
|--------------------------------|------------|------------|------------|------------|------------|------------|------------|------------|------------|------------|
| No. of Folios (lakh)*          |      554   |     476.63 |      417.4 |     401.72 |     428.28 |     464.52 |     472.33 |     481.75 |     479.65 |     437.96 |
| Demat Accounts at NSDL (lakh)# |      155.8 |     145.7  |      137.1 |     130.5  |     126.8  |     120.4  |     115.4  |     105.8  |      96.8  |      93.7  |
| Demat Accounts at CDSL (lakh)# |      122.7 |     107.9  |       96.1 |      87.7  |      83.2  |      79.2  |      74.8  |      65.8  |      55.3  |      48    |

Note: * includes equity, debt, balanced and liquid funds; # not deduplicated

Source: SEBI

The change in the shares and debentures held by  the household  sector  during  the  last  10  years  is given in the following table:

| Change in Financial Assets of Household Sector at current prices (Rs billion)   | Change in Financial Assets of Household Sector at current prices (Rs billion)   | Change in Financial Assets of Household Sector at current prices (Rs billion)   | Change in Financial Assets of Household Sector at current prices (Rs billion)   | Change in Financial Assets of Household Sector at current prices (Rs billion)   | Change in Financial Assets of Household Sector at current prices (Rs billion)   | Change in Financial Assets of Household Sector at current prices (Rs billion)   | Change in Financial Assets of Household Sector at current prices (Rs billion)   | Change in Financial Assets of Household Sector at current prices (Rs billion)   | Change in Financial Assets of Household Sector at current prices (Rs billion)   | Change in Financial Assets of Household Sector at current prices (Rs billion)   |
|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| Year                                                                            | 2006-07                                                                         | 2007-08                                                                         | 2008-09                                                                         | 2009-10                                                                         | 2010-11                                                                         | 2011-12                                                                         | 2012-13                                                                         | 2013-14                                                                         | 2014-15                                                                         | 2015-16                                                                         |
| Shares& debentures                                                              | 508.5                                                                           | 743.1                                                                           | -23.3                                                                           | 448.4                                                                           | 17.3                                                                            | 165.2                                                                           | 170.3                                                                           | 425.0                                                                           | 532.7                                                                           | 917.6                                                                           |

Source: Handbook of Statistics on Indian Economy, Reserve Bank of India

Note: Shares and debentures include investment in shares and debentures of credit/non-credit societies and investment in mutual funds (Specified Undertaking of the UTI)

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