Lok Sabha Question No. 5455 (UNSTARRED), answered on 2018-03-28
Subject: GDP Growth Forecast
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: POONAMBEN HEMATBHAI MAADAM

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA

## UNSTARRED QUESTION NO. 5455 TO BE ANSWERED ON WEDNESDAY, THE 28 TH  MARCH, 2018

## GDP GROWTH FORECAST

## 5455. SHRIMATI POONAMBEN MAADAM:

Will the Minister of STATISTICS AND PROGRAMME IMPLEMENTATION be pleased to state:

- (a) whether  the  Government  has  revised  its  2017-18  GDP  growth forecast and if so, the details thereof;
- (b)   whether  as  per  data  released  recently  by  the  Central  Statistics Office (CSO) it has marked that the Indian economy grew 7.2% in the October-December quarter of 2017-18 emerging as the fastest growing major economy in the world, overtaking China;
- (c) if  so,  whether the increased percentage growth of the farm and manufacturing sector is more than the previous quarter;
- (d) if  so,  whether  confidence  in  the  Indian  economy  has  increased substantially on account of the policy measures of the Government and of the Central bank; and
- (e) if  so  the  details  of  the  policy  measures  undertaken  for  the purpose?

## ANSWER

MINISTER  OF  STATE  IN  THE  MINISTRY  OF  STATISTICS  AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS (SHRI VIJAY GOEL)

- (a) The Ministry  releases  and  revises  estimates  of  Gross  Domestic Product  (GDP)  /  Gross  Value  Added  (GVA)  as  per  the  published advance release calendar.  Accordingly,  as  per  Second  Advance estimates of National Income, 2017-18 and Quarterly estimates of Gross Domestic Product (GDP) for the third Quarter (Q3) of 2017-

18  released  on  28 th   February,  2018  by  Central  Statistics  Office (CSO),  the  GDP  growth  in  the  country  is  estimated  to  be  6.6 percent at constant (2011-12) prices and  9.8 percent at current prices during  financial year 2017-18.

- (b) Comparison with national income estimates of other countries is not  done  by  CSO.  As  per  the  press  release  of  CSO  dated  28 th February,  2018,  growth  rates  of  GDP  during  the  third  quarter (October- December) of financial year 2017-18 is estimated to be 7.2  percent  at  constant  (2011-12)  prices  and  11.9  percent  at current prices.
- (c) Gross  Value  Added  (GVA)  growth  rates  of  'agriculture,  forestry &fishing', and 'manufacturing' sector, during the second quarter (July-Sep)  and  third  quarter  (October-  December)  of  2017-18  at constant  (2011-12)  and  current  prices  are  given  in  the  table below:
- (d) & (e): Government is continuously taking steps to boost growth in the Industry, which  inter alia includes putting in place policy frameworks to create a conducive business environment, strengthening  infrastructure  network  and  ensuring  availability  of required inputs.  The Make in India initiative aims to make India a hub for manufacturing, design and innovation.  It focuses on infrastructure,  simplified  processes,  job  creation,  skill  development and  fostering  innovation  in  select  thrust  sectors. The  Government has undertaken Foreign Direct Investment policy reforms in 21 sectors  covering  87  areas.  In  addition  to  the  opening  up  of  new

| Percentage Growth rate as compared to same quarter of previous year   | Percentage Growth rate as compared to same quarter of previous year   | Percentage Growth rate as compared to same quarter of previous year   | Percentage Growth rate as compared to same quarter of previous year   | Percentage Growth rate as compared to same quarter of previous year   |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
|                                                                       | At Constant Prices                                                    | At Constant Prices                                                    | At Current Prices                                                     | At Current Prices                                                     |
| Industry                                                              | Q2 (July - September)                                                 | Q3 (October- December)                                                | Q2 (July - September)                                                 | Q3 (October- December)                                                |
| Agriculture, forestry & fishing                                       | 2.7                                                                   | 4.1                                                                   | 4.3                                                                   | 7.9                                                                   |
| Manufacturin g                                                        | 6.9                                                                   | 8.1                                                                   | 9.5                                                                   | 10.9                                                                  |

sectors  and  enhancement  of  caps  for  existing  sectors,  various conditionalities  for  foreign  investments  have  also  been  simplified. The Government has also taken up a series of measures to improve the Ease of Doing Business. The emphasis has been on simplification and rationalization of the existing rules and introduction of information  technology  to  make  governance  more  efficient  and effective.  Monetary  policy  of  the  Reserve  Bank  of  India  (RBI)  has provided  the  price  stability  while  keeping  in  mind  the  objective  of growth  and  a  conducive  environment  for  a  revival  in  investment activity.

*****