Lok Sabha Question No. 2306 (UNSTARRED), answered on 2019-07-08
Subject: Private Sector Investment
Ministry: FINANCE
Asked by: Kinjarapu Ram Mohan Naidu

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

## LOK SABHA

## UNSTARRED QUESTION NO-2306

ANSWERED ON MONDAY, JULY 8, 2019 / ASHADHA 17, 1941 (SAKA)

## PRIVATE SECTOR INVESTMENT

## 2306: SHRI RAM MOHAN NAIDU KINJARAPU:

Will the Minister of FINANCE be pleased to state:

- (a) the details of measures taken to encourage private sector investment growth in the economy;
- (b) the details of sectors where private sector investment has been lower than the average for the last three years; and
- (c) the details of reasons for such slowdown?

## ANSWER

## MINISTER OF FINANCE

## (SMT. NIRMALA SITHARAMAN)

(a)  The  government  is  constantly  taking  various  initiatives  to  encourage  investment  in  the  economy, including  investment  by  private  sector,  which,  inter-alia,  include  measures  to  improve  ease  of  doing business, comprehensive reforms in the Foreign Direct Investment policy, various facilitation measures under flagship programmes like Make-in-India, Start-up India, reduced corporate tax rate of 25 per cent for companies with turnover up to Rs. 250 crore, launch of a support and outreach program for helping the growth, expansion and facilitation of Micro, Small and Medium Enterprises sector, etc. Further, steps taken  to  boost  private  sector  investment  in  infrastructure  sectors  include  launching  of  innovative financial  vehicles  such  as  Infrastructure  Debt  Funds,  Infrastructure  Investment  Trusts  (InvITs),  Real Estate Investment Trusts (REITs), mainstreaming of Public Private Partnerships (PPPs) across infrastructure  sectors  through  viability  gap  funding,  periodic  review  of  Harmonized  Master  List  of Infrastructure  Sub-sectors,  and  establishment  of  the  National  Investment  and  Infrastructure  Fund (NIIF).  Besides this, a Project Monitoring-Invest India Cell (PMIC) has also been set up for resolving of issues and fast tracking the setting up and expeditious commissioning of large Public, Private and PublicPrivate Partnership Projects

(b)  &  (c):  A  comparative  statement  indicating  industry-wise  data  relating  to  GFCF  for  private corporations and households for the years 2014-15 to 2016-17 at current and constant 2011-12 prices, available with National Statistical Office is at Annexure.  The data does not reveal a uniform trend of slowdown in private sector investment across sectors.   The pace of investment on each sector depends on various factors, domestic as well global. However, the overall GFCF for the private sector has steadily increased over the last 3 years.

*****

Statement referred in reply to part (b) & (c) of Lok Sabha Unstarred Question No.2306 for 08.07.2019

Annexure

|                      |                              | GFCF for Private Sector at constant (2011-12) prices   | GFCF for Private Sector at constant (2011-12) prices   | GFCF for Private Sector at constant (2011-12) prices     | GFCF for Private Sector at constant (2011-12) prices               | GFCF for Private Sector at constant (2011-12) prices   | GFCF for Private Sector at constant (2011-12) prices   | GFCF for Private Sector at constant (2011-12) prices   | Househo ld            | Househo ld         |
|----------------------|------------------------------|--------------------------------------------------------|--------------------------------------------------------|----------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|-----------------------|--------------------|
| Total Private        | Private corporatio           | Househo ld                                             | Househo ld                                             | Househo ld                                               | sector                                                             | sector                                                 | sector                                                 | ns                                                     | ns                    | ns                 |
| Total Private        | Private corporatio           | Total sector Househo ld                                | Private corporatio ns Total Private sector             | Private 1.                                               | economic activity agriculture, forestry and fishing                | 6097                                                   | S.No. Private corporatio ns 221012                     | 227109                                                 | 6391                  | 179121             |
| 185512               | 6750                         | 203820                                                 | 210570                                                 | 1.1                                                      | crops                                                              | 3790                                                   | 186604                                                 | 190394                                                 | 4370                  | 146789             |
| 151159               | 4603                         | 167617                                                 | 172220                                                 | 1.2                                                      | livestock                                                          | 1306                                                   | 19478                                                  | 20784                                                  | 1075                  | 15979              |
| 17054                | 1098                         | 18212                                                  | 19310                                                  | 1.3                                                      | forestry & logging                                                 | 53                                                     | 67                                                     | 120                                                    | 134                   | 71                 |
| 205                  | 141                          | 156                                                    | 297                                                    | 1.4                                                      | fishing& aquaculture                                               | 947                                                    | 14863                                                  | 15810                                                  | 812                   | 16281              |
| 17093                | 908                          | 17835                                                  | 18743                                                  | 2.                                                       | mining &quarrying                                                  | 11954                                                  | 4576                                                   | 16530                                                  | 10642                 | 3921               |
| 14563                | 12768                        | 7135                                                   | 19903                                                  | 3.                                                       | manufacturing                                                      | 453671                                                 | 74640                                                  | 528311                                                 | 517384                | 59813              |
| 577197               | 611204                       | 70478                                                  | 681682                                                 | 4.                                                       | electricity Gas, water supply and other utility services           | 97985                                                  | 550                                                    | 98535                                                  | 100537                | 721                |
| 101258               | 114907                       | 936                                                    | 115843                                                 | 5.                                                       | construction                                                       | 44068                                                  | 51359                                                  | 95427                                                  | 48545                 | 36155              |
| 84700                | 58688                        | 60089                                                  | 118777                                                 | 6.                                                       | trade, repair, hotels& restaurant                                  | 98175                                                  | 194915                                                 | 293090                                                 | 141273                | 243502             |
| 384775               | 117258                       | 185604                                                 | 302862                                                 | 6.1                                                      | trade& repair services                                             | 80775                                                  | 180518                                                 | 261293                                                 | 113893                | 222758             |
| 336651               | 92895                        | 169209                                                 | 262104                                                 | 6.2                                                      | hotels& restaurants                                                | 17401                                                  | 14397                                                  | 31798                                                  | 27380                 | 20744              |
| 48124                | 24362                        | 16396                                                  | 40758                                                  | 7.                                                       | transport,storage& communication& services related to broadcasting | 94182                                                  | 65167                                                  | 159349                                                 | 184080                | 69049              |
| 253129               | 227924                       | 92777                                                  | 320701                                                 | 7.1                                                      | railways                                                           | 20257                                                  | 0                                                      | 20257                                                  | 13776                 | 0                  |
| 13776                | 18633                        | 0                                                      | 18633                                                  | 7.2                                                      | Road transport                                                     | 12001                                                  | 51957                                                  | 63958                                                  | 16796                 | 57114              |
| 73910                | 16745                        | 79051                                                  | 95796                                                  | 7.3                                                      | water transport                                                    | 1680                                                   | 66                                                     | 1746                                                   | 2612                  | 70                 |
| 2682                 | 2526                         | 122                                                    | 2648                                                   | 7.4                                                      | Air transport                                                      | 2898                                                   | 0                                                      | 2898                                                   | 4644                  | 0                  |
| 4644                 | 5841                         | 0                                                      | 5841                                                   | 7.5                                                      | Services incidental to transport                                   | 8308                                                   | 1445                                                   | 9753                                                   | 16933                 | 1204               |
| 18137                | 19781                        | 1234                                                   | 21015                                                  | 7.6                                                      | Storage                                                            | 1374                                                   | 2289                                                   | 3663                                                   | 2055                  | 2616               |
| 4671                 | 1471                         | 1394                                                   | 2865                                                   | 7.7                                                      | Communication& services related to broadcasting                    | 47664                                                  | 9409                                                   | 57073                                                  | 127265                | 8045               |
| 135310               | 162928                       | 10976                                                  | 173904                                                 | 8.                                                       | financial services                                                 | 25663                                                  | 0                                                      | 25663                                                  | 35776                 | 0                  |
| 35776                | 31867                        | 0                                                      | 31867                                                  | 9.                                                       | Real estate, ownership of dwelling and professional services       | 309043                                                 | 610978                                                 | 920021                                                 | 299992                | 447032             |
| 747024               | 336895                       | 496366                                                 | 833261                                                 | 10.                                                      | public administration& defence                                     | 0                                                      | 0                                                      | 0                                                      | 0                     | 0                  |
| 0                    | 0                            | 0                                                      | 0                                                      | 11.                                                      | other services                                                     | 73795                                                  | 76116                                                  | 149911                                                 | 107812                | 65527              |
| 173339               | 127922                       | 83251                                                  | 211173                                                 |                                                          | Total                                                              | 1214634                                                | 1299314                                                | 251394 8                                               | 1452433               | 1104841            |
| 255727 4             | 1646183 2016-17              | 1200457                                                | 284664 0                                               | GFCF for Private Sector at current prices (in Rs crores) |                                                                    | 2014-15                                                | slno                                                   | economic activity                                      | Private corporatio ns | 2015-16 Househo ld |
| Total Private sector | Private corporatio ns        |                                                        | Private corporatio                                     |                                                          | Total Private sector                                               | Total Private sector                                   | Total Private sector                                   |                                                        |                       | Househo            |
| Househo ld           | Total Private sector         | 1.                                                     | ns agriculture, forestry and fishing                   | 6944                                                     | 267174                                                             | 274118                                                 | 7452                                                   | 221389                                                 | 228841                | ld 7987            |
| 259171               | 267158                       | 1.1                                                    | crops                                                  | 4365                                                     | 226985                                                             | 231350                                                 | 5191                                                   | 183376                                                 | 188567                | 5575               |
| 216569               | 222144                       | 1.2                                                    | livestock                                              | 1460                                                     | 23292                                                              | 24752                                                  | 1192                                                   | 19292                                                  | 20484                 | 1219               |
| 22397                | (in Rs crores) 2016-17 23616 |                                                        |                                                        |                                                          |                                                                    |                                                        |                                                        | 2014-15                                                |                       | 2015-16            |

| 1.3   | forestry & logging                                                 | 61      | 73      | 134      |     160 |      79 | 239      |     170 |     175 | 345      |
|-------|--------------------------------------------------------------------|---------|---------|----------|---------|---------|----------|---------|---------|----------|
| 1.4   | fishing& aquaculture                                               | 1058    | 16824   | 17882    |     909 |   18642 | 19551    |    1023 |   20031 | 21054    |
| 2.    | mining &quarrying                                                  | 13817   | 5066    | 18883    |   12058 |    4304 | 16362    |   14509 |    7754 | 22263    |
| 3.    | manufacturing                                                      | 502195  | 85563   | 587758   |  577603 |   66433 | 644036   |  680449 |   79187 | 759636   |
| 4.    | electricity Gas, water supply and other utility services           | 108658  | 617     | 109275   |  112495 |     795 | 113290   |  129660 |    1036 | 130696   |
| 5.    | construction                                                       | 45582   | 51858   | 97440    |   49741 |   35378 | 85119    |   57400 |   53242 | 110642   |
| 6.    | trade, repair, hotels& restaurant                                  | 111947  | 224022  | 335969   |  159055 |  270720 | 429775   |  134418 |  209589 | 344007   |
| 6.1   | trade& repair services                                             | 92008   | 207443  | 299451   |  128266 |  247630 | 375896   |  106514 |  191036 | 297550   |
| 6.2   | hotels& restaurants                                                | 19938   | 16579   | 36517    |   30789 |   23089 | 53878    |   27903 |   18552 | 46455    |
| 7.    | transport,storage& communication& services related to broadcasting | 106598  | 71509   | 178107   |  209631 |   74382 | 284013   |  259020 |  102046 | 361066   |
| 7.1   | railways                                                           | 24565   | 0       | 24565    |   17476 |       0 | 17476    |   23651 |       0 | 23651    |
| 7.2   | Road transport                                                     | 13296   | 56303   | 69599    |   18996 |   61005 | 80001    |   19353 |   86404 | 105757   |
| 7.3   | water transport                                                    | 1812    | 71      | 1883     |    2779 |      74 | 2853     |    2754 |     133 | 2887     |
| 7.4   | Air transport                                                      | 3136    | 0       | 3136     |    5205 |       0 | 5205     |    6684 |       0 | 6684     |
| 7.5   | Services incidental to transport                                   | 9313    | 1659    | 10972    |   19143 |    1337 | 20480    |   22593 |    1392 | 23985    |
| 7.6   | Storage                                                            | 1565    | 2645    | 4210     |    2283 |    2918 | 5201     |    1663 |    1587 | 3250     |
| 7.7   | Communication& services related to broadcasting                    | 52911   | 10831   | 63742    |  143748 |    9048 | 152796   |  182321 |   12530 | 194851   |
| 8.    | financial services                                                 | 29085   | 0       | 29085    |   41310 |       0 | 41310    |   37499 |       0 | 37499    |
| 9.    | Real estate, ownership of dwelling and professional services       | 364999  | 710241  | 107524 0 |  359200 |  510236 | 869436   |  405102 |  579872 | 984974   |
| 10.   | public administration& defence                                     |         |         | 0        |       0 |       0 | 0        |       0 |       0 | 0        |
| 11.   | other services                                                     | 0 84476 | 0 87559 | 172035   |  123865 |   72931 | 196796   |  148855 |   94164 | 243019   |
|       | Total                                                              | 1374301 | 1503609 | 287791 0 | 1652411 | 1256568 | 290897 9 | 1874900 | 1386062 | 326096 2 |