Lok Sabha Question No. 123 (UNSTARRED), answered on 2020-09-14
Subject: Indian Economy
Ministry: FINANCE
Asked by: Vellalath Kochukrishnan Nair. Sreekandan

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

## LOK SABHA UNSTARRED QUESTION NO. 123

TO BE ANSWERED ON 14.09.2020

## INDIAN ECONOMY

## 123.  SHRI V.K.SREEKANDAN:

Will the Minister of FINANCE be pleased to state:

- (a)  whether the Indian economy has suffered to its lowest level since our independence due to an act of God till now during the current financial year;
- (b)  if so, the details thereof;
- (c)  whether it is a fact that the GDP has been at minus 24 per cent and that the GST collection has been eroding quarter after quarter;
- (d)  if so the details thereof; and
- (e)  the steps proposed to be taken by the Government to revive our economy?

## ANSWER

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

- (a) to (d) As per the Estimates of Gross Domestic Product (GDP) for the First Quarter of April-June (Q1) of 2020-21 released by the National Statistical Office on 31st August 2020, the real GDP in India contracted by 23.9 per cent during Q1 of 2020-21 (as against a 5.2 per cent growth in Q1 of 2019-20). GST collections for Q1 of FY 2020-21 were 59% of the revenue collected during the same quarter last year. However, GST collections for  the  month  of August  recovered  to  Rs.  86,449  crore,  reaching  88%  of  collections  in  the  same  month  of previous year.
- (e)  Government  has  implemented  several  measures  to  mitigate  the  negative  impact  of  COVID-19  on  the economy which, inter-alia, include:
- (i) Relief measures for households such as in-kind (food; cooking gas) and cash transfers to senior citizens, widows,  disabled,  women  Jan  Dhan  Account  holders,  farmers;  insurance  coverage  for  workers  in  the healthcare sector; and wage increase for MGNREGA workers and support for building and construction workers, collateral free loans to self-help groups, reduction in EPF contributions, employment provision for migrant workers (Pradhan Mantri Garib Kalyan Rojgar Abhiyaan).
- (ii) Relief measures for MSMEs such as collateral-free lending program with 100 percent credit guarantee, subordinate debt for stressed MSMEs with partial guarantee, partial credit guarantee scheme for public sector  banks  on  borrowings  of  non-bank  financial  companies,  housing  finance  companies  (HFCs),  and micro finance institutions, Fund of Funds for equity infusion in MSMEs, additional support to farmers via concessional credit, as well as a credit facility for street vendors (PM SVANidhi), amongst others.
- (iii) Regulatory and compliance measures: postponing tax-filing and other compliance deadlines, reduction in penalty interest rate for overdue GST filings, change in government procurement rules, faster clearing of MSME dues, IBC related relaxations for MSMEs, amongst others.
- (iv) Structural reforms announced as part of the Atmanirbhar Package which, inter alia, include deregulation of the agricultural sector, change in definition of MSMEs, new PSU policy, commercialization of coal mining, higher  FDI  limits  in  defence  and  space  sector,  development  of Industrial  Land/  Land  Bank  and Industrial Information  System,  revamp  of  Viability Gap Funding scheme  for  social  infrastructure,  new power tariff policy and incentivizing States to undertake sector reforms.