Lok Sabha Question No. 764 (UNSTARRED), answered on 2018-12-14
Subject: Growth Rate
Ministry: FINANCE
Asked by: ELUMALAI VELLAIGOUNDER

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

## LOK SABHA

## UNSTARRED QUESTION NO. 764

TO BE ANSWERED ON DECEMBER 14, 2018 GROWTH RATE

## 764. SHRI V. ELUMALAI:

Will the Minister of FINANCE be pleased to state:

- (a) whether the growth in India is firming up and projected to accelerate to 7.3 per cent in the 2018- 19 fiscal and 7.5 per cent in the next two years;
- (b) if so, the details thereof;
- (c) whether according to World Bank, it appears to have recovered from the temporary disruptions caused by demonetisation and the introduction of GST; and
- (d) if so, the details thereof?

## ANSWER

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

(a)  &  (b)  As  per  the  estimates  available  from  Central  Statistics  Office,  the  growth  of  Gross Domestic Product (GDP) at constant market prices was 6.7 percent (Provisional Estimate) in 2017-18. The growth momentum of the economy picked up with the GDP growth increasing to 7.6 per cent in the first half (April-September) of 2018-19. The Economic Survey 2017-18 had projected the growth rate of GDP for the year 2018-19 to be in the range of 7.0 to 7.5 percent. In fifth bi-monthly monetary policy statement, 2018-19, Reserve Bank of India projected India's GDP  growth  for  2018-19  at  7.4  per cent. India's growth  projections by international organizations are in the table below.

| India's growth projections by international organizations   | India's growth projections by international organizations   | India's growth projections by international organizations   | India's growth projections by international organizations   |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| Organization                                                | 2018-19                                                     | 2019-20                                                     | 2020-21                                                     |
| International Monetary Fund                                 | 7.3                                                         | 7.4                                                         | 7.7                                                         |
| World Bank                                                  | 7.3                                                         | 7.5                                                         | 7.5                                                         |
| Asian Development Bank                                      | 7.3                                                         | 7.6                                                         | NA                                                          |
| Note: NA: Not available                                     | Note: NA: Not available                                     | Note: NA: Not available                                     | Note: NA: Not available                                     |

(c) & (d) The India Development Update (March 2018) and Global Economic Prospects (June 2018)  published  by  World  Bank  mention  that  the  temporary  disruptions  caused  by  the implementation of the Goods and Services Tax and demonetization have dissipated and the growth of the economy has improved significantly since then. The report mentions that India's GDP growth bottomed out in the middle of 2017 after slowing for five consecutive quarters, and has since improved significantly, with momentum carrying over into 2018.

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