Lok Sabha Question No. 1707 (UNSTARRED), answered on 2018-07-27
Subject: Impact of Economic Reforms
Ministry: FINANCE
Asked by: VEENA DEVI

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

## LOK SABHA

UNSTARRED QUESTION NO. 1707 TO BE ANSWERED ON 27 TH  JULY 2018

## IMPACT OF ECONOMIC REFORMS

† 1707. SHRIMATI VEENA DEVI:

Will the Minister of FINANCE be pleased to state:

- (a) whether after the implementation of New Economic Reforms in the recent years, there has been development and expansion of various sector relating to Information Technology, Communication, Advertising, Pharmaceuticals, Banking, Tourism on account  of the priority accorded to them;
- (b) if so, the reaction of the Government thereto;
- (c) whether there has been a decline in the traditional industries of the country after implementation of New Economic Reforms; and
- (d) if so, the details thereof?

## THE MINISTER OF STATE FOR FINANCE (SHRI PON RADHAKRISHNAN)

- (a) & (b) The Government has taken many reform initiatives across different sectors. For example, the Goods and Services Tax was introduced, Indian Bankruptcy Code was passed, recapitalisation package for public sector banks was announced and a special package for textile sector was given.  Because of these  reform  measures,  growth  has  accelerated.  As  per  the  provisional  estimates  of  annual  national income  released  by  the  Central  Statistics  Office(CSO)  for  the  year  2017-18,  real  gross  value  added (GVA) at constant (2011-12) prices for the year 2017-18 in trade, hotels, transport, communication and services related to broadcasting is estimated at 8.0% as against previous year's growth rate of 7.2%. Foreign tourist arrivals during the period January-May 2018 were 44,82,064 as compared to 41,21,377 in January-May 2017 registering a growth of 8.8%. Over the last few years the Indian telecom sector has shown remarkable growth. As on end of September 2017, the total subscribers stood at 1207.04 million, out of which 501.99 million connections were in the rural areas and 705.05 million in the urban areas. The overall  tele-density  in  India  was  93.42  per  cent  including  56.78%  in  rural  areas  and  172.86%  in urban areas (as on September, 2017). Schedule Commercial Banks' non-food credit growth picked from 4.5% in April 2017 to 11.1% in May 2018.
- (c) & (d) As per the provisional estimates of annual national income released by the CSO for the year 2017-18 the growth rate of GVA at constant (2011-12) prices for industry accelerated from 0.1% in Q1 of 2017-18 to 8.8% in Q4 for the year 2017-18. The table below shows the growth rate for various sectors of industry.

## Quarterly Estimates of Growth in GVA (%) at Basic Prices for 2017-18

(at 2011-12 prices)

|                                                        | 2017-18   | 2017-18   | 2017-18   | 2017-18   |
|--------------------------------------------------------|-----------|-----------|-----------|-----------|
|                                                        | Q1        | Q2        | Q3        | Q4        |
| Mining & quarrying                                     | 1.7       | 6.9       | 1.4       | 2.7       |
| Manufacturing                                          | -1.8      | 7.1       | 8.5       | 9.1       |
| Electricity, gas, water supply& other utility services | 7.1       | 7.7       | 6.1       | 7.7       |
| Construction                                           | 1.8       | 3.1       | 6.6       | 11.5      |

## ANSWER