Lok Sabha Question No. 554 (UNSTARRED), answered on 2016-11-18
Subject: Impact of Liberalisation
Ministry: FINANCE
Asked by: RAVINDRA BABU  PANDULA, NIHAL CHAND CHAUHAN

- (a) whether the Government is aware that Indian economy has witness growth in adverse global environment;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the impact of liberalisation and globalisation has affected the job avenues of the weaker section of the society particularly Scheduled Caste, Scheduled Tribes and other Backward Castes; and
- (d) if so, the details thereof and the steps taken to create more jobs and strengthen the economy?

## ANSWER

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

(a)  &  (b)  The  growth  rate  of  Gross  Domestic  Product  (GDP)  at  constant  (2011-12) market prices increased from 6.6 per cent in 2013-14 to 7.2 per cent in 2014-15 and further to 7.6 per cent in 2015-16, indicating that the growth rate of the economy has improved  in  the  last  three  years  despite  adverse  global  environment.  This  has happened mainly on the strength of growth in domestic consumption. As per the World Economic Outlook published in October 2016 by International Monetary Fund (IMF) the global growth was 3.4 per cent in 2014 and 3.2 per cent in 2015 and projected to slow to 3.1 per cent in 2016.

(c) The details regarding the impact of liberalisation on the job avenues by social groups viz. SCs, STs, and OBCs are not available. However, to assess the effect of economic slowdown  on  employment  in  India  in  selected  labour-intensive  and  export-oriented sectors, Labour Bureau under Ministry of Labour & Employment has been conducting Quick  Quarterly  Surveys  on  employment  and  unemployment.  Twenty-eight  such surveys have been conducted by Labour Bureau so far. According to the survey results, overall estimated employment in all selected sectors has experienced a net addition of 38.81 lakh jobs starting from the first survey (October, 2008 to December, 2008) till the 28th Survey (July, 2015 to September, 2015). Furthermore, the estimated employment generated  in  all  selected  sectors  have  experienced  a  net  addition  of  1.35  lakh  jobs starting January, 2015 to December, 2015.

(d) Efforts are being made by the Government to promote employment generation among the marginalized and poor people particularly SCs, STs and OBCs through several programmes/schemes. Some of them include Special Area Programme of  Special  Central  Assistance  to  Tribal  Sub-Plan  (SCA  to  TSP),  Special  Central Assistance to Scheduled  Caste  Sub-Plan  and  other  Central  Sector / Centrally Sponsored  schemes  that  provide  funds  for  economic  development  of SCs,  STs  and OBCs in the States covering skill development and employment-cum-income generation activities.  The  government  has  stressed  upon  the State  Governments to promote the need  based  integrated  livelihood  initiatives  such  as  Dairy  development,  horticulture, floriculture,  vegetable  production,  apiculture,  sericulture,  fisheries,  backyard  poultries, etc.  in  order  to  create  enabling  environment  for  tribals  to  earn  their  livelihood  and increase  direct  /  indirect  employment  opportunities,  as  well  as  on  vocational  training. Efforts  are  being  made  to  provide  concessional  credit  to promote  entrepreneurial development amongst SCs, STs, OBCs and other vulnerable sections of the society. National  Rural  Livelihood  Mission  (NRLM)  has  been  aligned  to  the  skill  development initiatives  which  provide  efficient  and  effective  institutional  platforms  to  the  rural  poor and  enabling  them  to  increase  household  income  through  sustainable  livelihood enhancements  and  improved  access  to  financial  services.  A  new  Scheme  'Pradhan Mantri Rojgar Protsahan Yojana' has been announced in the Budget for 2016-17 with the  objective  to  incentivize  employers  registered  with  the  Employees'  Provident  Fund Organisation  (EPFO)  for  job  creation  by  the  Government  paying  the  8.33  per  cent contribution  of  employers to  the  Employee Pension Scheme (EPS) in respect of new employees having a new Universal Account Number (UAN). The scheme is operational with effect from 9 th August, 2016.

The  Government  of  India  has  taken  various  initiatives  to  strengthen  economy  which, inter alia , include; fillip to manufacturing and infrastructure through fiscal incentives and concrete  measures  for  transport,  power,  and  other  urban  and  rural  infrastructure; reforms  and  liberalization  of  foreign  direct  investment  in  major  sectors;  measures  to debottleneck the supply of key raw materials etc. Skill India and Digital India initiatives; 'Make in India'.  Start-up  India Initiative  has  been  launched  to  boost  entrepreneurship and  creation of job. In addition, many  initiatives like launching  of Micro  Units Development  and  Refinance  Agency  Ltd.  (MUDRA); 'Stand  Up  India  Scheme'  to promote entrepreneurship among SC/ST and women entrepreneurs; boost to agricultural sector with focus on micro irrigation, watershed development, soil conservation and credit; and for providing social security to the disadvantaged sections of the society; etc. have been also launched.

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