Lok Sabha Question No. 1379 (UNSTARRED), answered on 2021-12-06
Subject: Growth Rate
Ministry: FINANCE
Asked by: T.N. Prathapan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1379

TO BE ANSWERED ON 06.12.2021

## GROWTH RATE

1379.  SHRI T.N. PRATHAPAN:

Will the Minister of FINANCE be pleased to state:

- (a) the current growth rate of the country;
- (b) the  current  growth  rate  of  the  country  with  proper  data  and  digits  indicating  where  it stands  in  comparison  to  the  current  growth  rates  of  Pakistan,  Bangladesh,  Nepal, SriLanka, Myanmar, Maldives and China;
- (c) the reasons and factors for the current growth rate of the country; and
- (d) whether  the  Government  has  the  data  of  growth  rate  since  2010  and  if  so,  the  details thereof, year-wise?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a): As per the estimates released by National Statistical Office (NSO), Ministry of Statistics and Program Implementation (MoSPI), growth of India's real Gross Domestic Product (GDP) is estimated at 20.1 percent in First Quarter (Q1) and 8.4 per cent in Second Quarter (Q2) of FY 2021-22. GDP growth in first half (H1) of 2021-22 is estimated at 13.7 per cent. As per Reserve Bank of India, India is projected to grow at 9.5 per cent in FY 2021-22.
- (b): As per IMF's World Economic Outlook (WEO) Update, October 2021, India is projected to grow at 9.5 per cent in 2021 and 8.5 per cent in 2022, highest among major economies in both the years. IMF's growth forecasts for Pakistan, Bangladesh, Nepal, Sri Lanka, Myanmar, Maldives and China in 2021 and 2022 are given in the table below.
- (c): 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  DhanAadhaar-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.

| Country    |   2021 |   2022* |
|------------|--------|---------|
| India      |    9.5 |     8.5 |
| Pakistan   |    3.9 |     4   |
| Bangladesh |    4.6 |     6.5 |
| Bhutan     |   -1.9 |     4.2 |
| China      |    8   |     5.6 |
| Maldives   |   18.9 |    13.2 |
| Myanmar    |  -17.9 |    -0.1 |
| Nepal      |    1.8 |     4.4 |
| Sri Lanka  |    3.6 |     3.3 |

Source: International Monetary Fund, World

Economic Outlook Database, October 2021

Note: *- Projections, All figures in %

In  FY  2020-21,  to  limit  the  damage  inflicted  by  the  pandemic  on  the  economy  and  initiate quick  recovery  of  economic  growth  in  FY  2020-21,  Government  had  announced  a  special economic and comprehensive package of Rs. 29.87 lakh crore under AtmaNirbhar Bharat (ANB) including measures announced by RBI and PM Garib Kalyan Yojana. Union Budget 2021-22  further  announced  number  of  measures  to  support  broad-based  and  inclusive economic  development  including  a  34.5  percent  increase  in  capital  expenditure  and  137 percent increase in health expenditure. Government also announced a relief package of Rs 6.29 lakh crore in June 2021 to strengthen public health and provide impetus for growth and employment measures.

- (d):  As  per  MoSPI, growth of India's real Gross Domestic Product (GDP) since 2010-11 is given below.

## Growth of Real GDP (%)

|     |   2010- 11 |   2011 -12 |   2012 -13 |   2013 -14 |   2014- 15 |   2015- 16 |   2016 -17 |   2017- 18 |   2018-19 2nd RE |   2019-20 1st RE |   2020- 21 PE |
|-----|------------|------------|------------|------------|------------|------------|------------|------------|------------------|------------------|---------------|
| GDP |        8.5 |        5.2 |        5.5 |        6.4 |        7.4 |          8 |        8.3 |        6.8 |              6.5 |                4 |          -7.3 |

Source: NSO, MoSPI

Note: RE-Revised Estimates, PE- Provisional Estimates

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