Lok Sabha Question No. 1097 (UNSTARRED), answered on 2021-02-08
Subject: Economic Growth Rate
Ministry: FINANCE
Asked by: Haji Fazlur Rehman

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

## LOK SABHA UNSTARRED QUESTION NO. 1097

TO BE ANSWERED ON 08.02.2021

## ECONOMIC GROWTH RATE

## 1097. SHRI HAJI FAZLUR REHMAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the economic growth rate of the country has declined from the last year;
- (b) if so, the details thereof;
- (c) the estimated and actual economic growth rate during each of the last five years along with the reasons therefor; and
- (d) the action plan being formulated or proposed to be formulated by the Government to achieve the estimated economic growth rate of the country?

## ANSWER

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

- (a) & (b)  As per the  Estimates of Gross Domestic Product (GDP) released by National Statistical Office (NSO), M/o Statistics and Program Implementation (MoSPI), the annual GDP growth rates at constant (2011-12) prices during the last year and the current year are listed as under :

| Financial Year (FY)   | Annual GDP growth rate (per cent) at constant 2011-12 prices   |
|-----------------------|----------------------------------------------------------------|
| FY 2019-20            | 4.0 (First Revised Estimates)                                  |
| FY 2020-21            | (-)7.7 (First Advance Estimates)                               |

Source: NSO, MoSPI.

- (c) Real GDP growth estimates are released by NSO and revised subsequently in accordance with the release calendar of National Accounts data. Real GDP growth estimates published by NSO for the last five years are listed as under :
- (d)  Government  has  implemented  several  major  reforms  in  recent  years  to  boost  investment  and  GDP  growth.  The Government enacted the Insolvency and Bankruptcy Code (IBC) and recapitalized banks. The other measures taken, inter-alia, include Goods and Services Tax (GST) to simplify the indirect taxation regime, Make-in-India programme to boost domestic manufacturing capacity, liberalization of Foreign Direct Investment (FDI) and Jan Dhan-Aadhaar-Mobile (JAM) Trinity towards greater transparency, efficiency and financial inclusion. In September, 2019 the corporate tax rate was reduced to 15 per cent for  new domestic manufacturing companies, which is amongst the lowest in the world. In December  2019,  the  government  announced  the  Rs.103  lakh  crore  National  Infrastructure  Pipeline  which  would significantly boost infrastructure and spur growth impulses in the economy. The Union Budget 2020-21 also announced a  number  of  growth  supporting  measures  which,  inter-alia,  include  rationalization  of  personal  income  tax  rates  to support domestic demand, a 16-point action plan for holistic development of the agriculture sector and critical measures to boost infrastructure and rural spending.

| FY      | Real GDP growth rate in per cent (as per estimates of NSO)   |
|---------|--------------------------------------------------------------|
| 2015-16 | 8.0 (3 rd RE)                                                |
| 2016-17 | 8.3 (3 rd RE)                                                |
| 2017-18 | 6.8 (3 rd RE)                                                |
| 2018-19 | 6.5 (2 nd RE)                                                |
| 2019-20 | 4.0 (1 st RE)                                                |

Note: RE- Revised Estimate        Source: NSO, MoSPI.

In FY 2020-21, Government announced a special economic and comprehensive package under AtmaNirbhar Bharat including measures taken by RBI amounting to about Rs. 27.1 lakh crores - more than 13 per cent of India's GDP- to combat the impact of the COVID-19 pandemic and to revive economic growth. The package included, among others, inkind and cash transfer relief measures for households, employment provision measures under Pradhan Mantri Garib Kalyan Rojgar Abhiyaan and increased allocation under MGNREGS, credit guarantee and equity infusion-based relief measures for MSMEs and NBFCs and regulatory and compliance measures. Structural reforms were also announced as part of the AtmaNirbhar Bharat Package which, inter alia, included 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. The implementation of the package is reviewed and monitored regularly.

The Union Budget 2021-22 has also announced a number of measures to support broad-based and inclusive economic development under six pillars listed as under :

## (i) Health and Wellbeing

Key measures include a holistic approach to strengthen healthcare with focus on three areas- Preventive, Curative, and Wellbeing, Rs. 35,000 crore for COVID-19 vaccine, roll out of Made-in-India Pneumococcal Vaccine across the country, launching of a new centrally sponsored scheme PM AtmaNirbhar Swasth Bharat Yojana in addition to National Health Mission,  Mission  Poshan  2.0,  Universal  Coverage  of  Water  Supply,  Urban  Swachh  Bharat  Mission  2.0,  Clean  Air, Scrapping policy, etc.

## (ii) Physical & Financial Capital, and Infrastructure

Key  measures  include  Production  Linked  Incentive  scheme  (PLI)  in  13  Sectors,  Mega  Investment  Textiles  Parks (MITRA), 7 Textile Parks, expansion of National Infrastructure Pipeline (NIP) to 7,400 projects, creation of  institutional structures  for  Infrastructure  Financing,  National  Monetization  Pipeline,  sharp  increase  in  Capital  Budget,  economic corridors, flagship corridors/expressways, National Rail Plan for India (2030), future dedicated freight corridor projects, strengthening  of  urban  infrastructure,  launching  of  National  Hydrogen  Energy  Mission  2021-22,  extension  of  Ujjwala Scheme  to  cover  1  crore  more  beneficiaries,  development  of  a world  class  Fin-Tech  hub,  increasing  FDI  limit  in insurance  sector  from  49  percent  to  74  percent,  setting  up  of  Asset  Reconstruction  Company  Limited  and  Asset Management Company, recapitalization of PSBs easing compliance requirement of small companies, amendments to the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961, decriminalization of the Limited Liability Partnership  (LLP)  Act,  2008,  promoting  start-ups  and  innovators  by  incentivizing  the  incorporation  of  one  person companies,  strengthening  NCLT  framework,  new  policy  for  Strategic  Disinvestment,  Government  Financial  Reforms such  as  universal  application  of  Treasury  Single  Account  (TSA)  System,  rationalization  of  Centrally  Sponsored Schemes, development of Multi-State Cooperatives, etc.

## (iii) Inclusive Development for Aspirational India

Key measures include ensuring MSP at minimum 1.5 times the cost of production across all commodities, extension of SWAMITVA Scheme to all States/UTs, enhancing agricultural credit and infrastructure funds, investments to develop modern fishing harbours and fish landing centres, One Nation One Ration Card, Rs. 15,700 crore budget allocation to MSME Sector, etc.

## (iv) Reinvigorating Human Capital

Key measures include qualitative strengthening of 15000 schools under National Education Policy, setting up of 100 new Sainik Schools, Higher Education Commission of India, Central University in Leh, 750 Eklavya model residential schools in tribal areas, revamped Post Matric Scholarship Scheme for welfare of SCs, measures to enhance skilling like realignment of existing National Apprenticeship Training Scheme (NATS), etc.

## (v) Innovation and R&D

Key measures include Rs. 50,000 crore outlay under National Research Foundation (NRF), Rs. 1,500 crore for financial incentives to promote digital modes of payment, PSLV-CS51 launch, Gaganyaan mission activities, launching of Deep Ocean Mission, etc.

## (vi) Minimum Government and Maximum Governance

Key measures include reforms to rationalize the functioning of Tribunals, National Commission for Allied  Healthcare Professionals Bill in Parliament to ensure transparent and efficient regulation of the 56 allied healthcare professions, National  Nursing  and  Midwifery  Commission  Bill  to  bring  transparency,  efficiency  and  governance  reforms  in  the nursing profession, setting up of a Conciliation Mechanism for quick resolution of contractual disputes, Rs. 3768 crores for  India's  first  digital  census,  Rs.1000  crores  for  the  welfare  of  tea  workers  especially  women  and  their  children  in Assam and West Bengal, etc.