Lok Sabha Question No. 672 (UNSTARRED), answered on 2020-02-05
Subject: Slow Down in GDP
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: Bheemrao Baswanthrao Patil

## GOVERNMENT OF INDIA MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA

UNSTARRED QUESTION NO. 672

TO BE ANSWERED ON 05.02.2020

## SLOW DOWN IN GDP

## 672. SHRI B.B.PATIL:

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

- (a) whether India' GDP growth rate is slowing down day-by-day;
- (b)  if  so,  the  GDP  growth  rate  during  the  last  seven  years,  year-wise; and
- (c)  the  measures  taken/being  taken  by  the  Government  to  boost  the GDP growth?

## 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) and (b): The annual GDP Growth Rates at Constant (2011-12) Prices during the last seven years are as under:

| Year         |   GDP Growth Rate (In %) |
|--------------|--------------------------|
| 2013-14      |                      6.4 |
| 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

(c): 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 135 basis points during 2019 by the Reserve Bank of India and mandating banks to link their lending rates with external benchmarks for reducing the cost of capital for investors. Government has approved a  realty  fund  worth  Rs.  25000  crore  for  stalled  housing  projects. Government has also extended PM Kisan scheme to include all farmers, which will boost rural consumption. To boost exports, Government has undertaken  number  of  measures,  inter-alia,  extending  the  scheme  of reimbursement  of  taxes  and  duties  for  export  promotion  replacing Merchandise Exports from India Scheme (MEIS) to 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, including constructing economic corridors and strategic highways, over the next five years, for enhanced connectivity and employment  generation. Moreover, to incentivize business as well as foreign investors, the Dividend Distribution  Tax  on  companies  is  proposed  to  be  done  away  with. Allocation  for  agriculture  and  rural  development  has  been  nearly doubled to Rs. 2.83 lakh crore. Also, to further encourage start-ups, the turnover  limit  for  tax-exemption  has  been  proposed  to  be  increased from Rs. 25 crore to Rs. 100 crore.

*****