Lok Sabha Question No. 1305 (UNSTARRED), answered on 2020-02-10
Subject: Review of Growth Rates
Ministry: FINANCE
Asked by: Annpurna Devi, Poonamben Hematbhai Maadam

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

## LOK SABHA UNSTARRED QUESTION NO. 1305

TO BE ANSWERED ON 10.02.2020

## REVIEW OF GROWTH RATES

## † 1305. SHRIMATI ANNPURNA DEVI: SHRIMATI POONAMBEN MAADAM:

Will the Minister of FINANCE be pleased to state:

- (a)  the details of economic, industrial and agricultural growth rate during the last three years, year-wise;
- (b)  whether the Government has reviewed the said growth rates;
- (c)   if so, the outcome thereof;
- (d)  the target fixed for growth rate for various sectors for the last three years, year-wise including actual growth rate, year-wise; and
- (e)  the efforts made by the Government to achieve the fixed targets along with the outcome thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a) to (e): The growth rates of Gross Value Added (GVA) in agriculture, industry and services sector along with the growth rates of Gross Domestic Product (GDP) during the last three years are given in the table below:

| Table : Growth of Real GVA at Basic Prices by Sectors and GDP at Market Prices (percent)   | Table : Growth of Real GVA at Basic Prices by Sectors and GDP at Market Prices (percent)   | Table : Growth of Real GVA at Basic Prices by Sectors and GDP at Market Prices (percent)   | Table : Growth of Real GVA at Basic Prices by Sectors and GDP at Market Prices (percent)   |
|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
| Sectors                                                                                    | 2016-17                                                                                    | 2017-18 2 nd RE                                                                            | 2018-19 1 st RE                                                                            |
| GVA at basic prices                                                                        | 8.0                                                                                        | 6.6                                                                                        | 6.0                                                                                        |
| Agriculture, forestry & fishing                                                            | 6.8                                                                                        | 5.9                                                                                        | 2.4                                                                                        |
| Industry                                                                                   | 7.7                                                                                        | 6.3                                                                                        | 4.9                                                                                        |
| Services                                                                                   | 8.5                                                                                        | 6.9                                                                                        | 7.7                                                                                        |
| GDP at market prices                                                                       | 8.0                                                                                        | 7.0                                                                                        | 6.1                                                                                        |
| Source: National Statistical Office (NSO). Notes: 2 nd RE: Second Revised Estimates        | Source: National Statistical Office (NSO). Notes: 2 nd RE: Second Revised Estimates        | Source: National Statistical Office (NSO). Notes: 2 nd RE: Second Revised Estimates        | 1 st RE: First Revised Estimates                                                           |

The government does not as such fix the target growth rate for various sectors. However, the government reviews the performance of various sectors regularly and takes necessary steps to enhance their growth. Some of the reform measures taken by the government in recent years include Insolvency and Bankruptcy Code (IBC) to  strengthen  the  financial  system,  Goods  and  Services  Tax  (GST)  to  simplify  the  indirect taxation  regime,  Make-in-India  programme  to  boost  domestic  manufacturing  capacity,  liberalization  of Foreign Direct Investment (FDI) and Jan Dhan-Aadhaar-Mobile (JAM) Trinity towards greater transparency, efficiency and financial inclusion. Recently, the corporate tax rate has been cut to 15 per cent for new domestic manufacturing companies, which is amongst the lowest in the world. In December 2019, the government has announced the ₹103 lakh crore National Infrastructure Pipeline which would significantly  boost  infrastructure  and  spur growth  impulses in the economy. The Union Budget 2020-21 has announced a number of measures to support broad-based and inclusive growth.