Lok Sabha Question No. 357 (STARRED), answered on 2018-08-10
Subject: Indian Economy
Ministry: FINANCE
Asked by: VEENA DEVI, RAM KUMAR SHARMA KUSHWAHA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA STARRED QUESTION NO. 357

TO BE ANSWERED ON AUGUST 10, 2018

## INDIAN ECONOMY

## †* 357. SHRIMATI VEENA DEVI: SHRI RAM KUMAR SHARMA:

Will the Minister of FINANCE be pleased to state:

- (a) whether as per the World Bank Reports, Indian economy is the sixth largest economy in the world at present and if so, the details thereof along with the reaction of the Government thereto;
- (b) the size/value of Indian economy in dollar terms vis-a-vis the first five economies of the world along with the details of the share of various sectors viz. agriculture, industry, trade and service in Indian economy at present;
- (c) the difference in terms of amount in the economy of India being the sixth and United States being the largest economy of the world and the time limit targeted to be fixed to bridge this gap by India;
- (d) the extent to which the Goods and Services Tax (GST) has helped in achieving the goal of the sixth largest economy in the world; and
- (e) whether the World Bank has pointed out challenges in the form of Non- Performing Assets, etc. and if so, the measures taken/likely to be taken by the Government to address the same?

## ANSWER

FINANCE MINISTER (SHRI PIYUSH GOYAL)

- (a) to (e) A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO. 357

## BY SHRIMATI VEENA DEVI AND SHRI RAM KUMAR SHARMA DUE FOR ANSWER ON AUGUST 10, 2018

…..

- (a) Second Quarter (Q2) 2018 Update of World Development Indicators database of the World Bank, ranked India sixth in terms of GDP (in current US$) in 2017.
- (b) The GDP (in current US$) of top six economies of the world for the year 2017, as per the aforementioned Update, is given in the following table.

| Table: GDP of the Top Six Economies of the World (Current US$ Billion for 2017)   | Table: GDP of the Top Six Economies of the World (Current US$ Billion for 2017)   |
|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Country                                                                           | GDP                                                                               |
| United States                                                                     | 19391                                                                             |
| China                                                                             | 12238                                                                             |
| Japan                                                                             | 4872                                                                              |
| Germany                                                                           | 3677                                                                              |
| United Kingdom                                                                    | 2622                                                                              |
| India                                                                             | 2597                                                                              |

Source:

Second Quarter (Q2) 2018

Update of World Development Indicators database, World Bank

As per the information available from Central Statistics Office, the share of different sectors of the  Indian  economy  in  total  value  added  (at  current  basic  prices)  for  the  year  2017-18  for agriculture & allied, industry and services (including trade) sectors was 17.1 per cent, 29.1 per cent and 53.9 per cent respectively.

- (c) The GDP of United States at US$19391 billion is nearly 7.5 times higher than India's GDP of US$ 2597 billion. There is no target to bridge the economy size gap between the US and India.
- (d) The overall economic growth and the size of an economy is dependent on several factors that, inter  alia ,  include  initial  stage  of  development,  the  rate  of  capital  formation  and  savings, utilization of technology, availability of infrastructure, efficiency of resource allocation, quality of institutions,  governance  and  the  policy  framework  in  place,  money  supply  and  degree  of financial development. GST has come into implementation from July1, 2017.
- (e)  World  Bank's  India  Development  Update  titled  'India's  Growth  Story'  (March  2018),  has raised  the  issue  of  non-performing  assets,  etc.  and  has  stated  that  reviving  bank  credit  is critically important to support India's economic growth. Towards this end, the Government has launched a phased program for bank recapitalization. This entails infusion of capital to the public sector banks, to the tune of about Rs. 2.11 lakh crore over two years.  In addition, RBI initiated schemes, which incentivize banks to come together with their borrowers to rehabilitate stressed assets. Government set up an autonomous Banks Board Bureau to recommend for selection of heads of banks and help them in developing strategies and capital raising plans The Insolvency and Bankruptcy Code was enacted to achieve insolvency resolution in a time bound manner.