Lok Sabha Question No. 4725 (UNSTARRED), answered on 2021-03-24
Subject: Decline in GDP Growth
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: M.K. Vishnu Prasad

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

LOK SABHA UNSTARRED QUESTION NO. 4725 TO BE ANSWERED ON 24.03.2021

## DECLINE IN GDP GROWTH

4725. DR. VISHNU PRASAD M. K.:

Will the Minister of STATISTICS AND PROGRAMME IMPLEMENTATION be pleased to state:

- (a) whether the Government has assessed the impact of monetization and COVID-19 on GDP growth;
- (b) if so, the details thereof;
- (c)  the  measures  taken  by  the  Government  to  tackle  the  decline  in GDP growth in the present economic slowdown; and
- (d) the details of major factors that affected GDP during the last one year?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE  (INDEPENDENT  CHARGE)  OF  THE  MINISTRY  OF  PLANNING (RAO INDERJIT SINGH)

- (a) & (b): The status of economic activities and the disruption in data flow  in  some  sectors  due  to  COVID-19 had  an  impact  on  the  GDP  of India. GDP growth rates estimated for the financial years 2019-20 and 2020-21 are as follows:

## Year on Year GDP growth rate (%)

| Types of GDP                      |   2019-20 |   2020-21 |
|-----------------------------------|-----------|-----------|
| GDP growth rate at current prices |       7.8 |      -3.8 |
| GDP growth rate at 2011-12 prices |       4   |      -8   |

(c):  Astute  management  of  the  lockdown  and  subsequent  unlocking along with strengthened health infrastructure was accompanied by roll out of Pradhan Mantri Garib Kalyan Yojana (PMGKY) and Atma Nirbhar Bharat  (ANB)  packages  that  besides  saving  lives  also  protected livelihoods and businesses. These measures included, among others, in-kind (food; cooking gas) and cash transfers to vulnerable sections; insurance coverage for workers in the healthcare sector; in-kind and cash transfer relief measures for households and employment provision  measures  for  migrant  workers  under  Pradhan  Mantri  Garib Kalyan Rojgar Abhiyaan, increased allocation under Mahatma Gandhi National Rural employment Guarantee Act (MGNREGA), credit guarantee & equity infusion-based relief measures for Micro Small & Medium Enterprises (MSMEs) and Non Banking Financial Corporations (NBFCs)  amongst others. Structural reforms were also announced as part  of  the  Atma  Nirbhar  Bharat  Package  which,  inter  alia,  included deregulation of the agricultural sector, change in definition of MSMEs, new Public Sector Undertaking (PSU) policy, commercialization of coal mining,  higher  Foreign  Direct  Investment  (FDI)  limits  in  defence  and space  sector,  revamp  of  Viability  Gap  Funding  scheme  for  social infrastructure,  new  power  tariff  policy  and  incentivizing  States  to undertake sector reforms.

The Union Budget 2021-22 has also announced a number of measures to support broad-based and inclusive economic development under six pillars listed as under:

- i.
- Health and Wellbeing
- ii. Physical & Financial Capital and Infrastructure
- iii. Inclusive Development for Aspirational India
- iv.
- v.
- Reinvigorating Human Capital
- Innovation and (Research & Development) R&D
- vi. Minimum Government and Maximum Governance

(d): The factors that affected GDP during last one year are i)  Strict  lockdown  imposed  to  contain  spread  of  COVID-19  pandemic led to loss of livelihood sources and slowing down of business/economic  activities;  (ii) Disruption  of  supply  chain  of  the economy; and (iii) the services sector (including trade, transport and personal services) owing to contact intensive nature were affected.

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