Lok Sabha Question No. 775 (UNSTARRED), answered on 2018-12-14
Subject: Gross Fixed Capital Formation
Ministry: FINANCE
Asked by: RAVNEET SINGH

## GOVERNMENT OF INDIA MINISTRY OF FINAI{CE DEPARTMENT OF ECONOMIC AFFAIRS

## LOKSABHA

## TJNSTARRED QUESTION  NO. 775

TO BE ANSWERED ON FRIDAY, DECEMBER I4,2OI8 / AGRAI{AYANA 23,I94O (SAKA)

## Gross Fixed Capital  Formation

## 775: SHRI RAYI\EET SINGH:

Will the Minister of FINA1\ICE  be pleased to state:

- (a) whether  the Govemment is aware  that private inveslment i.e. Gross Fixed Capital Formation has remained stagnant  for the last four years, if so, the details thereof  and the reasons therefor;
- @)  whether the Govemment's  measures for incentivising private sector invesfinepts  had any effect  in boosting  private  investment, if so, the details thereof and if not, the reasons therefor; and
- (c) whether  according to the Reserve Bank of India's OBICUS report the capacity utilization remains low in various  sectors such as steel, if so" the details thereof  and the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF'F'INA}ICE

## (SHRI PON. RADHAKRISHNAN)

(a)  & (b): The Gross Fixed Capital  Formation  (GFCF) (at constant  prices (2011-12) has registered a growth of 2.6 Yo in 2014-15;  5.2% in 2015-16;  10.1% in 2016-17 axld 7 .6Yo in 2017' 18. A Statement  indicating details of Gross Fixed Capital Formation  (GFCF) during the last four years is Annexure-I.

The Govemment aims at creating conducive environment by streamlining  existing regulations and processes  and is continuously  taking  initiatives to boost industrial growth  like 'Make in India' - under u'hich thrust sectors have been identified to provide a push to manufacturing in Indi4 'startup hdia' & 'Ease of Doing Business'. Foreign Direct ln'estment (FDI) policy and procedures  have been simplified and liberalized progressivoly. Further, several

.steps  have been taken to mobilize  private investment  in infrastructure sectors like launching of innovating  financial  vetucles  such as Infrastnrcture Debt Funds, Infrastiucture  Investment  Trusts (InvlTs)/R-eal  Estate  Investment  Trusts (REITs),  developing  new Public Private Partnership (PPP) models like Toll.Operate-Transfer and Hybrid Annuity Model, periodic review of Harmonized  Master List of Infrastructure Sub-sectors, and establishment  of the National Investment and Infrastructure  Fund (NIIF). As a result of this, ranking  of India has improved from 142 (year 2014) to 77 (year 2018) in the Ease of Doing Business  Index.

(c): A Statement indicating estimates  of capacity  utilization for the Indian manufacturing  sector based  on Reserve Bank of India's quarterly Order Books, Inventories and Capacity Utilisation Survey (OBICUS) since  Q1:2015-16  is at Annexure-Il.  Estimates of capacity utilisation  based on OBICUS are compiled at the aggregate level and sectoral estimates are not compiled due to limited coverage.

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Statement referred to in reply to part (a) & (b) of Lok Satrha Unstarred Question  No.775 for answer on 14.12.2018

## Gross Fixed Capital  Formation  (GFCF)

| At current prices    | 2013-14   | 20t4-15   | 2015- 16   |   2016-17 | 2017-18#   |
|----------------------|-----------|-----------|------------|-----------|------------|
| Public sector        | 796950    | 872482    | 10092s 8   |   1091536 |            |
| Private Corp. Sector | t312544   | 137430t   | 1652411    |   1874900 |            |
| Household sector     | 1406127   | 1503609   | 1256568    |   1386062 |            |
| Total Economy        | 3515621   | 3750392   | 3918237    |   4352498 | 4778894    |

## Annexure-I

Rs. In Crore

|                               |         |         |         |           | Rs. In Crore   |
|-------------------------------|---------|---------|---------|-----------|----------------|
| Ar ( 201r- 12)constant prices | 20t1-14 | 2014-15 | 2015-16 | 2016-17   | 2017-18#       |
| Public sector                 | 717650  | '164149 | 890919  | 95 t) 5   |                |
| Private Corp. Sector          | 1238677 | 1214634 | 1452433 | 1646183   |                |
| Household sector              | 1238s98 | t2991t4 | 1104841 | 1200457   |                |
| Total Economy                 | 3194925 | 3278097 | 3448193 | 875 797 3 | 408755'1       |

Statement referreo to in reply to part (c) of Lok Sabha UnstarreO  Quesfion  No,775  for ansver onl4.l?..2018

Estimates of Capacify lJtilization  (manufacturing  sector) from Survey  data (RBI's oBrcus)

| 30   | i Q1:2015-15   | 1265   | 72.3   |
|------|----------------|--------|--------|
| 31   | j Q2:201s-16   | 1002   | 72.2   |
| 32   | i el:zots-tr   | 1007   | 73.8   |
| JJ   | i q+:zots-te   | 770    | 75.5   |
| 34   | i Q1:2016'i7   | 872    | 7 I .7 |
| 35   | Q2:20r6-L7     | 902    | 72.0   |
| 36   | t Q3:2015-17   | 1 tto  | 71.0   |
| 37   | 1Q4:201647     | 724    | 74.6   |
| 38   | Q1:2017-18     | 80s    | 7r.2   |
| 39   | Q2:20i7-18     | 756    | 71.8   |
| 40   | Q3:2017-18     | 940    | 74.1   |
| 4t   | Q4:2017-18     | 921    | 75.2   |
| 42   | Q1:2018-19     | 8s0    | 73.8   |

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