Lok Sabha Question No. 55 (STARRED), answered on 2020-02-05
Subject: GDP Growth Rate
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: Andimuthu Raja

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA

## STARRED QUESTION NO. *55

## TO BE ANSWERED ON 05.02.2020

## GDP GROWTH RATE

## *55. SHRI A. RAJA:

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

PROGRAMME

- (a) whether the Government is aware that National Statistical Office (NSO) has estimated India's GDP growth rate for 2019-20 at 5 per cent;
- (b) if so, the details thereof;
- (c) whether it has dipped to its lowest over the last few years;
- (d)
- if so, the details thereof and the reasons therefor; and
- (e)  the  measures being taken by the Government to raise the GDP and  the  manner  in  which  the  Government  proposes  to  address the adverse impact of the lower GDP in all spheres?

## 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) to (e): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PART (a)  TO (e)  OF  LOK SABHA STARRED QUESTION NO. *55 FOR 5 TH  FEBRUARY, 2020 BY SHRI A. RAJA REGARDING GDP GROWTH RATE.

(a): Yes, Sir.

(b): Real GDP or GDP at Constant Prices (2011-12) in the year 2019-20 as  per  First  Advanced  Estimates  (FAE)  is  likely  to  attain  a  level  of ₹147.79 lakh crore, as against the FRE of GDP for the year 2018-19 of ₹139.81  lakh  crore,  released  on  31st  January  2020.  The  growth  in real GDP during 2019-20 is estimated at 5.0 per cent as compared to the growth rate of 6.1 per cent in 2018-19.

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

| Year          |   GDP Growth Rate (In %) |
|---------------|--------------------------|
| 2014-15       |                      7.4 |
| 2015-16       |                      8   |
| 2016-17       |                      8.3 |
| 2017-18       |                      7   |
| 2018-19(FRE)  |                      6.1 |
| 2019-20 (FAE) |                      5   |

FRE-First Revised Estimates, FAE-First Advance Estimates

The  Growth  of  GDP  has  declined  largely  due  to  low  growth  in Manufacturing and Construction Sector.

(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  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 2020-21 proposes to invest Rs. 100 lakh crore  on  infrastructure  development  over  the  next  five  years  for enhanced  connectivity  and  employment  generation.  To  encourage start-ups,  the  limit  for  tax-exemption  has  been  proposed  to  be increased from Rs. 25 crore to Rs. 100 crore. Moreover, to incentivize business as well as foreign investors, the Dividend Distribution Tax on companies is proposed to be done away with.

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