Lok Sabha Question No. 4058 (UNSTARRED), answered on 2019-01-04
Subject: Indian Economy
Ministry: FINANCE
Asked by: RATTAN LAL KATARIA

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4058

TO BE ANSWERED ON JANUARY 04, 2019

## INDIAN ECONOMY

4058. SHRI RATTAN LAL KATARIA:

Will the Minister of FINANCE be pleased to state:

- (a) whether India is the fastest growing economy in the world;
- (b) if so, the details thereof;
- (c) whether the Government proposes to nearly double the size of Indian economy to $5 trillion; and
- (d) if so, the steps taken by the Government to improve every sector of economy?

## ANSWER

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

- (a)  & (b) As per the International Monetary Fund's World Economic Outlook database (October 2018), India was the fastest growing major economy in the world in 2014-15, 2015-16 and 2016-17. In 2017-18, growth rate  of  China  was  slightly  higher  than  that  of  India.  India  is  projected  to  be  the  fastest  growing  major economy in 2018-19 and 2019-20 as well.
- (c) & (d) The Government's intent is to accelerate the growth of Gross Domestic Product (GDP) so that the size  of  the  economy  increases  at  a  fast  pace.  The  focus  of  the  Government  is  to  achieve  broad-based economic growth spanning all sectors and various steps have been taken for the same, which, inter-alia , include;  fillip  to  manufacturing  via  Make  in  India  programme  and  measures  to  improve  ease  of  doing business, concrete measures for transport sector including measures for regional connectivity and power sector  via  schemes  like  Ujjwal  DISCOM  Assurance  Yojana  (UDAY),  starting  of  Multi  Modal  Terminal  on River Ganga to promote inland waterways. Other measures include comprehensive reforms in the foreign direct investment policy and special package for textile industry. The introduction of the Goods and Services Tax  has  provided  a  significant  opportunity  to  improve  growth  momentum  by  reducing  barriers  to  trade, business  and  related  economic  activities.  The  Government  has  launched  a  phased  program  for  bank recapitalization  entailing  infusion  of  capital  to  the  public  sector  banks,  to  the  tune  of  about  Rs.  2.11  lakh crore over two financial years, which is expected to encourage banks to enhance lending. The Insolvency and Bankruptcy Code was enacted to achieve insolvency resolution in a time bound manner. The Union Cabinet  approved  a significant  increase  in  the  Minimum  Support  Prices  for  all  Kharif  and  Rabi  crops  for 2018-19  season,  in  order  to  provide  major  boost  to  farmer's  income.  Budget  2018-19  included  various measures to provide a push to the economy, which among others, include major push to infrastructure via higher allocation to rail & road sector, reduced corporate tax rate of 25 per cent for companies with turnover up to Rs. 250 crore which is expected to help 99 per cent of Micro, Small and Medium Enterprises (MSME), etc.    The  Government  launched  a  support  and  outreach  program  for  helping  the  growth,  expansion  and facilitation of the MSME sector.

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