Lok Sabha Question No. 1017 (UNSTARRED), answered on 2019-02-08
Subject: GDP and Employment
Ministry: FINANCE
Asked by: PREM SINGH CHANDUMAJRA

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

## LOK SABHA UNSTARRED QUESTION NO. 1017

TO BE ANSWERED ON FEBRUARY 08, 2019

## GDP AND EMPLOYMENT

† 1017. PROF. PREM SINGH CHANDUMAJRA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the annual growth rate of Gross Domestic Product (GDP) has been satisfactory for the last several years;
- (b) if so, the reaction of the Government thereon;
- (c) whether despite the continuous economic growth additional avenues of employment could not be created in view of the requirements of the country;
- (d) if so, the details in this regard; and
- (e) whether the Government proposes to change the present model of economic development, if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PON RADHAKRISHNAN)

- (a) & (b) The annual growth rate of Gross Domestic Product (GDP) of India since 2011-12 is given in the table below. The growth performance of the economy in the last five years has been remarkable. The economy has achieved high growth of 7.6 per cent in the last 5 years (average from 2014-15 to 2018-19).

| Growth of GDP at Constant (2011-12) Market prices (per cent)   | Growth of GDP at Constant (2011-12) Market prices (per cent)   | Growth of GDP at Constant (2011-12) Market prices (per cent)   | Growth of GDP at Constant (2011-12) Market prices (per cent)   | Growth of GDP at Constant (2011-12) Market prices (per cent)   | Growth of GDP at Constant (2011-12) Market prices (per cent)   | Growth of GDP at Constant (2011-12) Market prices (per cent)   | Growth of GDP at Constant (2011-12) Market prices (per cent)   | Growth of GDP at Constant (2011-12) Market prices (per cent)   |
|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
|                                                                | 2011-12                                                        | 2012-13                                                        | 2013-14                                                        | 2014-15                                                        | 2015-16 (3 rd RE)                                              | 2016-17 (2 nd RE)                                              | 2017-18 (1 st RE)                                              | 2018-19 (1 st AE)                                              |
| GDP                                                            | 5.2                                                            | 5.5                                                            | 6.4                                                            | 7.4                                                            | 8.0                                                            | 8.2                                                            | 7.2                                                            | 7.2                                                            |

Source:

Note:

1 st

CSO

3 rd

RE: Third Revised Estimate; 2

AE: First Advance Estimate

The growth prospects of the country remain bright. Indian economy is projected to be the fastest growing major economy in the coming financial year (as per International Monetary Fund World Economic Outlook database January 2019).

- (c)  &  (d)  As  per  the  information  available  from  Labour  Bureau,  it  does  not  capture  the  data  on  additional  avenues  of employment creation required in the country. However, as indicated in the Union Budget 2019-20 (Interim), increase in Employees'  Provident  Fund  Organisation  membership  by  2  crores  in  two  years  reflects  the  increased  employment opportunities.
- (e)  Economic  development  is  on  top  priority  of  the  Government's  economic  policy.  Government  has  been  consistently taking measures to promote economic growth and for the benefits of these to reach all sections of society. Key measures include; fillip to manufacturing sector via schemes like Make in India, concrete measures for transport, railways, renewable energy sectors, urban and rural infrastructure,  and comprehensive reforms in the foreign direct investment policy. The introduction of the Goods and Services Tax (GST) has provided a significant opportunity to improve growth momentum by reducing  barriers  to  trade,  business  and  related  economic  activities.  For  promoting  inclusive  growth  to  all  sections  of people,  the  Government  is  implementing  various  programmes/schemes  for  creating  better  employment  opportunities, strengthening social infrastructure and providing basic amenities like water, electricity, roads, sanitation and housing for covering  all  sections  of  population.  The  Union  Budget  2019-20  also  laid  out  measures  to  promote  development  in  the economy.

nd

RE: Second Revised Estimate; 1

st

RE: First Revised Estimate;