Lok Sabha Question No. 1388 (UNSTARRED), answered on 2019-11-27
Subject: Slowdown in GDP
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: Nusrat Jahan Ruhi, Thomas Chazhikadan, Badruddin Ajmal

## GOVERNMENT OF INDIA MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA

UNSTARRED QUESTION NO. 1388

TO BE ANSWERED ON 27.11.2019

## SLOWDOWN IN GDP

1388. SHRIMATI NUSRAT JAHAN RUHI: SHRI THOMAS CHAZHIKADAN: SHRI M. BADRUDDIN AJMAL:

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

- (a) whether  India's  GDP  is  slowing  down  day  by  day  during  the  last several months;
- (b) if so, whether the GDP growth has slowed down to an overall six-year low at five per cent and if so, the details thereof;
- (c) the measures taken/being taken by the Government to boost the GDP growth;
- (d) the GDP growth rate during the last five years, year-wise; and
- (e) by  when  the  GDP  rate  of  the  country  is  likely  to  come  out  of  the downward trend?

## 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)  and  (b):  Quarterly  Growth  Rates  of  Gross  Domestic  Product  (GDP)  at Constant  (2011-12)  Prices  for  the  years  2014-15  to  the  first  Quarter  of 2019-20 are as under:

| Years   | Quarterly Growth Rate (in %)   | Quarterly Growth Rate (in %)   | Quarterly Growth Rate (in %)   | Quarterly Growth Rate (in %)   |
|---------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|
|         | Quarter 1                      | Quarter 2                      | Quarter 3                      | Quarter 4                      |
| 2014-15 | 8.0                            | 8.7                            | 5.9                            | 7.1                            |
| 2015-16 | 7.6                            | 8.0                            | 7.2                            | 9.1                            |
| 2016-17 | 9.4                            | 8.9                            | 7.5                            | 7.0                            |
| 2017-18 | 6.0                            | 6.8                            | 7.7                            | 8.1                            |
| 2018-19 | 8.0                            | 7.0                            | 6.6                            | 5.8                            |
| 2019-20 | 5.0                            | -                              | -                              | -                              |

(c) to (e): Government  has  been  undertaking  various  measures  to  boost GDP growth. Introduction of Insolvency and Bankruptcy Code (IBC) in 2016 is  a  significant  step  towards  strengthening  the  financial  system  of  the country. Implementation of Goods and Services Tax in 2017 stands out as an important measure for improving ease of doing business in the country. Make-in-India  programme  is  a  major  initiative  towards  increasing  the indigenous capacity to produce world class goods and services. Continuous liberalization has led to an increase in inflows of foreign direct investment into the country. More recently, Government has cut corporate tax  rate  from  30  percent  to  22  percent  to  boost  investment  activity.  In particular,  the  corporate  tax  rate  has  been  cut  to  15  percent  for  new domestic  manufacturing  companies,  which  is  amongst  the  lowest  in  the world. This complements a cut in the repo rate by 135 basis points during 2019  by  the  Reserve  Bank  of  India  and  mandating  banks  to  link  their lending rates with external benchmarks for reducing the cost of capital for investors. Government has approved a realty fund worth Rs. 25000 crore for  stalled  housing  projects.  Government  has  also  extended  PM  Kisan scheme  to  include  all  farmers,  which  will  boost  rural  consumption.  To boost exports, Government has undertaken number of measures, inter-alia, extending  the  scheme  of  reimbursement  of  taxes  and  duties  for  export promotion  replacing  Merchandise  Exports  from  India  Scheme (MEIS)  to incentivize  exporters,  fully  automated  electronic  refund  for  Input  Tax Credits in GST, and revised priority sector lending norms for exports credit.

In addition, the Union budget 2019-20 provides a push to infrastructure development with the intention to invest Rs. 100 lakh crore in infrastructure over the next five years and by restructuring of National Highway Programme. Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI) has been started to facilitate cluster based development to make the traditional industries more productive, profitable and capable for generating sustained employment opportunities.

The annual GDP Growth Rates at Constant (2011-12) Prices during the last five years are as under:

| Year        |   GDP Growth Rate (In %) |
|-------------|--------------------------|
| 2014-15     |                      7.4 |
| 2015-16     |                      8   |
| 2016-17     |                      8.2 |
| 2017-18     |                      7.2 |
| 2018-19(PE) |                      6.8 |

## PE-Provisional Estimates

Government is undertaking number of measures to boost economic growth. Further, assessment by IMF and other multilateral organizations continue to underline a positive outlook on India.

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