Lok Sabha Question No. 2205 (UNSTARRED), answered on 2017-07-28
Subject: Economic Growth
Ministry: FINANCE
Asked by: LALLU SINGH

- (a) whether it is mandatory to promote open market for providing pace to economic growth of the country;
- (b) if so, the reaction of the Government thereto;
- (c) whether manufacturing and agriculture output have declined at present in the country;
- (d) if so, the details thereof and the reasons therefor; and
- (e) whether  despite  lower  production  in  the  country  the  open  market  system  will  boost  the economic growth of the country and if so, the details thereof?

## ANSWER

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

- (a) & (b): Calibrated opening up of markets may aid economic growth of a country via higher trade and investment flows. Exports represent external market for India's goods and services and capital inflows  can  potentially  increase  the  investment  in  the  economy.  The  Economic  Survey  2016-17 presented  in  the  Parliament  in  January  2017,  indicated  that  open  foreign  market  access  might encourage  domestic  economic  growth.  Government  has  liberalized  the  FDI  regime,  with  the objective of providing major impetus to the economy.
- (c) & (d): Index of Industrial Production (IIP, with base year 2011-12) for the manufacturing sector that  tracks  its  production,  was  121.8  for  2016-17,  as  compared  to  116.2  in  2015-16  and  112.8  in 2014-15,  showing  an  increase  in  manufacturing  production.  During  April-May  2017,  the  average manufacturing IIP index was 121.4 vis-à-vis 119.3 in the corresponding period of the previous year, representing an increase of 1.8 per cent.

As per the third advance estimates of production for the year released by Department of Agriculture, Cooperation  and  Farmers  Welfare,  the  production  of  various  agriculture  commodity  groups  is presented below.

| Production of Major Crops (in Million)   | Production of Major Crops (in Million)   | Production of Major Crops (in Million)   |
|------------------------------------------|------------------------------------------|------------------------------------------|
| Group/Commodity                          | 2015-16                                  | 2016-17*                                 |
| Food grains (tonnes) a                   | 251.6                                    | 273.4                                    |
| Pulses (tonnes) b                        | 16.4                                     | 22.4                                     |
| Oilseeds (tonnes) c                      | 25.3                                     | 32.5                                     |
| Cotton (bales of 170 Kgs. each)          | 30.1                                     | 32.6                                     |

Source: Directorate of Economics & Statistics, Department of Agriculture, Cooperation & Farmers Welfare Notes:

*: 3rd Advance Estimates, a: Includes cereals, coarse cereals and pulses, b: Includes tur, urad, moong, gram, lentils and other pulses,     c: Includes groundnut, rapeseed & mustard, sesamum, linseed, castorseed, nigerseed, safflower, sunflower and soyabean.

- (e): As per the latest available data from CSO, the value of output for the economy has not declined in  2015-16. As per the first revised estimates of national income  for 2015-16 (released in January 2017), value of output at constant (2011-12) prices registered a growth of 6.7 per cent in 2015-16.

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