Lok Sabha Question No. 500 (UNSTARRED), answered on 2018-07-20
Subject: GDP Growth Rate
Ministry: FINANCE
Asked by: T.G. VENKATESH BABU

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

## LOK SABHA UNSTARRED QUESTION NO. 500

TO BE ANSWERED ON JULY 20, 2018

## GDP GROWTH RATE

500. SHRI VENKATESH BABU T.G.

Will the Minister of FINANCE be pleased to state:

- (a)  whether there has been a fall in Gross Domestic Product (GDP) growth rate and if so, the details thereof during the last three years, year/sector-wise;
- (b)  whether the Government has taken any steps to boost the GDP growth rate; and
- (c)  if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

- (a) As per the Provisional Estimates available from Central Statistics Office released on 31 st May 2018, the growth rate of GDP (at constant 2011-12 prices) was 6.7 per cent in 2017-18 as against the growth rate of 7.1 per cent in 2016-17 and 8.2 per cent in 2015-16. The sectoral details of real growth of gross value added (GVA) at basic prices for 2015-16, 2016-17 and 2017-18 are given in the following table.

| Table: Growth in Gross Value Added at Constant (2011-12) Basic Prices (Per cent)   | Table: Growth in Gross Value Added at Constant (2011-12) Basic Prices (Per cent)   | Table: Growth in Gross Value Added at Constant (2011-12) Basic Prices (Per cent)   | Table: Growth in Gross Value Added at Constant (2011-12) Basic Prices (Per cent)   |
|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
| Sector                                                                             | 2015-16 @                                                                          | 2016-17 #                                                                          | 2017-18*                                                                           |
| Agriculture, forestry & fishing                                                    | 0.6                                                                                | 6.3                                                                                | 3.4                                                                                |
| Industry                                                                           | 9.8                                                                                | 6.8                                                                                | 5.5                                                                                |
| of which Manufacturing                                                             | 12.8                                                                               | 7.9                                                                                | 5.7                                                                                |
| Services                                                                           | 9.6                                                                                | 7.5                                                                                | 7.9                                                                                |
| GVA at basic prices                                                                | 8.1                                                                                | 7.1                                                                                | 6.5                                                                                |

Source: Based on information available from Central Statistics Office; * : Provisional Estimates;  #: 1 st Revised Estimates @: 2 nd Revised Estimates

- (b) & (c) The Government of India has taken various steps to boost the growth of GDP in the economy. These, interalia, include; fillip to manufacturing, concrete measures for transport and power sectors as well as other urban and rural  infrastructure,  comprehensive reforms in the foreign direct investment policy and special package for textile industry,  push  to  infrastructure  development  by  giving  infrastructure  status  to  affordable  housing  and  focus  on coastal connectivity. For highways development, the Bharatmala Pariyojana has been launched. The Union Cabinet approved a significant increase in the Minimum Support Prices (MSPs) for all kharif crops for 2018-19 season, in order  to  provide  major  boost  to  farmer's  income.  The  government  has  launched  a  phased  program  for  bank recapitalization. This entails 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. To implement the Code, the National Company Law Tribunal was established. The introduction of the Goods and Services Tax (GST) has provided a significant opportunity to improve growth momentum by reducing barriers to trade, business and related economic activities.  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 MSMEs, etc.

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