Lok Sabha Question No. 3950 (UNSTARRED), answered on 2016-12-09
Subject: Macro Economic Stability
Ministry: FINANCE
Asked by: KANWAR SINGH TANWAR

- (a) whether the Indian economy has continued to consolidate the gains achieved in restoring macro-economical stability;
- (b) if so, the details thereof;
- (c)  whether the Government proposes to manage the economy in the backdrop of uncertain and fragile outlook of the world economy; and
- (d) if so, the details thereof and the steps taken in this regard?

## ANSWER

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

- (a)  &  (b):  As  per  the  Economic  Survey  2015-16,  the  Indian  economy  has  continued  to consolidate  the  gains  achieved  in  restoring  macroeconomic  stability.  Despite  the  continuing global sluggishness and recent pick-up in petroleum prices, economic growth has continued to be robust and inflation has remained more or less stable in the current year, while fiscal deficit and current account deficit as percentage of GDP have continuously improved. The details of the macroeconomic indicators are given in the following table:
- (c)  &  (d):  The  Government's  systematic  focus  on  economic  growth  and  macroeconomic stability  and  the  various  measures  taken  in  this  regard  have  made  India  one  of  the  fastest growing major economies in the world. The efforts to simplify business and investment-related clearances, fast-track governance reforms and promote skills have helped India to improve its status as an  investment  destination. The  stress given to fiscal consolidation through expenditure  rationalization  and  revenue  raising  efforts  and  the  focus  on  administrative measures to contain inflation have contributed significantly to macro-economic stability.

| Macro Economic Indicators ( in Per cent)                               | Macro Economic Indicators ( in Per cent)                               | Macro Economic Indicators ( in Per cent)                               | Macro Economic Indicators ( in Per cent)   | Macro Economic Indicators ( in Per cent)   |
|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|--------------------------------------------|--------------------------------------------|
| Indicators                                                             | 2013-14                                                                | 2014-15                                                                | 2015-16                                    | 2016-17 (April-September)                  |
| Growth in GDP at constant (2011-12) market prices                      | 6.6                                                                    | 7.2                                                                    | 7.6                                        | 7.2                                        |
| Inflation (CPI Combined)                                               | 9.5                                                                    | 5.9                                                                    | 4.9                                        | 5.2 #                                      |
| Fiscal Deficit (percentage of GDP)                                     | 4.5                                                                    | 4.0                                                                    | 3.9                                        | 3.5                                        |
| Current Account Deficit (percentage of GDP)                            | 1.7                                                                    | 1.3                                                                    | 1.1                                        | 0.1 $                                      |
| # April-October 2016 * Budget Estimates for the financial year 2016-17 | # April-October 2016 * Budget Estimates for the financial year 2016-17 | # April-October 2016 * Budget Estimates for the financial year 2016-17 | $ April-June 2016.                         | $ April-June 2016.                         |