Lok Sabha Question No. 3243 (UNSTARRED), answered on 2017-08-04
Subject: Indian Economy
Ministry: FINANCE
Asked by: RAJAN BABURAO  VICHARE

- (a) whether the Indian Economy has slowed sharply in the first quarter during January-March 6.1 per cent down from 7 per cent in the previous quarters while the overall pace of growth in 2016-17 moderated to a three year low of 7.1 per cent according to the data released by the Central Statistics Office (CSO) recently;
- (b) if so, the details thereof along with the worst hit sectors, sector-wise; and
- (c) the remedial steps taken by the Government in this regard?

## ANSWER

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

- (a)  As  per  the  data  released  by  Central  Statistics  Office  (CSO)  on  31st  May,  2017,  the  growth  rate  of  GDP  at constant (2011-12) prices was 6.1 per cent during the January-March quarter of 2016-17, as compared to 7.0 per cent growth in the October-December quarter of 2016-17. The GDP growth rate during 2016-17 at constant (201112) prices was 7.1 per cent, as compared to 7.5 per cent in 2014-15 and 8.0 per cent growth in 2015-16 respectively.
- (b) As per the latest data available from CSO, the sector-wise growth rate in Gross Value Added (GVA) at constant basic prices for the last three years and third and fourth quarters of 2016-17 are given in the table below.
- (c) The Government of India has taken various initiatives to give impetus to the economy which, inter alia, include; fillip  to  manufacturing and infrastructure, both rural and urban; concrete measures for transport and power sectors and comprehensive reforms in the policy for foreign direct investment. Government announced various measures in the  Budget  2017-18  to  promote  growth  in  the  economy  which,  among  others,  includes  push  to  infrastructure development  by  giving  infrastructure  status  to  affordable  housing,  higher  allocation  to  highway  construction,  and focus on coastal connectivity. The other measures include: lower income tax for companies with annual turnover up to Rs 50 crore; further measures to improve the ease of doing business; and, a major push to digital economy. The Budget also targeted to provide higher agricultural credit and to increase employment significantly. The introduction of  the  Goods  and  Services  Tax  (GST)  has  provided  a  significant  opportunity  to  improve  growth  momentum  by removing barriers to trade, business and related economic activities.

| Sector- Wise Growth Rates Of GVA At Constant (2011-12) Prices (per cent)     | Sector- Wise Growth Rates Of GVA At Constant (2011-12) Prices (per cent)   | Sector- Wise Growth Rates Of GVA At Constant (2011-12) Prices (per cent)   | Sector- Wise Growth Rates Of GVA At Constant (2011-12) Prices (per cent)   | Sector- Wise Growth Rates Of GVA At Constant (2011-12) Prices (per cent)   | Sector- Wise Growth Rates Of GVA At Constant (2011-12) Prices (per cent)   |
|------------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|
| Industry                                                                     | 2014-15                                                                    | 2015-16                                                                    | 2016-17                                                                    | October- December 2016                                                     | January- March 2017                                                        |
| Agriculture, forestry & fishing                                              | -0.2                                                                       | 0.7                                                                        | 4.9                                                                        | 6.9                                                                        | 5.2                                                                        |
| Mining & quarrying                                                           | 11.7                                                                       | 10.5                                                                       | 1.8                                                                        | 1.9                                                                        | 6.4                                                                        |
| Manufacturing                                                                | 8.3                                                                        | 10.8                                                                       | 7.9                                                                        | 8.2                                                                        | 5.3                                                                        |
| Electricity, gas, water supply & other utility services                      | 7.1                                                                        | 5.0                                                                        | 7.2                                                                        | 7.4                                                                        | 6.1                                                                        |
| Construction                                                                 | 4.7                                                                        | 5.0                                                                        | 1.7                                                                        | 3.4                                                                        | -3.7                                                                       |
| Trade, hotels, transport, communication and services related to broadcasting | 9.0                                                                        | 10.5                                                                       | 7.8                                                                        | 8.3                                                                        | 6.5                                                                        |
| Financial , real estate & professional services                              | 11.1                                                                       | 10.8                                                                       | 5.7                                                                        | 3.3                                                                        | 2.2                                                                        |
| Public Administration, defence and other services                            | 8.1                                                                        | 6.9                                                                        | 11.3                                                                       | 10.3                                                                       | 17.0                                                                       |
| GVA at basic prices                                                          | 7.2                                                                        | 7.9                                                                        | 6.6                                                                        | 6.7                                                                        | 5.6                                                                        |
| GDP                                                                          | 7.5                                                                        | 8.0                                                                        | 7.1                                                                        | 7.0                                                                        | 6.1                                                                        |

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