Lok Sabha Question No. 914 (UNSTARRED), answered on 2022-02-07
Subject: Increase in GDP
Ministry: FINANCE
Asked by: Queen Oja, Bharatiben Dhirubhai Shyal, Manne Srinivas Reddy, Rodmal Nagar, Komati Reddy Venkat Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 914

TO BE ANSWERED ON 7.02.2022

## INCREASE IN GDP

## 914. SHRIMATI QUEEN OJA:

DR. BHARATIBEN DHIRUBHAI SHIYAL:

SHRI MANNE SRINIVAS REDDY:

SHRI RODMAL NAGAR:

SHRI KOMATI REDDY VENKAT REDDY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Gross Domestic Product(GDP) of the country has increased substantially during the last seven years and the current year;
- (b) if so, the details thereof along with the percent of increase in GDP, year-wise;
- (c) the details of steps being taken/likely to be taken by the Government to promote GDP;
- (d) whether Covid-19 pandemic could impact the final numbers; and
- (e) if so, the details thereof along with the reaction of the Government thereto?

## ANSWER

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

- (a)   & (b): As per first advance and first revised estimates of Gross Domestic Product (GDP) released by the National Statistical Office (NSO), size of real GDP has been increased from Rs.105.3 lakh crore in 2014-15 to Rs. 135.6 lakh core in 2020-21 and estimated to be Rs. 147.5 lakh crore in 2021-22. India's real Gross Domestic Product (GDP) growth since 201415 is given below.
- (c): Government has implemented several major reforms in recent years to boost investment and GDP growth. These include Insolvency and Bankruptcy Code (IBC); recapitalization of banks; roll out of Goods and Services Tax (GST); Make-in-India programme; liberalization of Foreign  Direct  Investment  (FDI);  cut  in  the  corporate  tax  rate;  and  making  of    National Infrastructure pipeline of projects worth more than Rs.100 lakh crore.  Enhancing of support under Direct Benefit Transfers (DBT) mission protected the poor.

|                    |   2014-15 |   2015-16 |   2016-17 |   2017-18 |   2018-19 |   2019-20 (2nd RE) |   2020-21 (1st RE) |   2021-22 (1 st AE) |
|--------------------|-----------|-----------|-----------|-----------|-----------|--------------------|--------------------|---------------------|
| Growth of Real GDP |       7.4 |         8 |       8.3 |       6.8 |       6.5 |                3.7 |               -6.6 |                 9.2 |

Source: NSO, MoSPI

Note: RE-Revised Estimates, AE- Advance Estimates

In FY 2020-21, as a major part of its policy response to the pandemic, Government, while providing  a  safety  net  to  the  vulnerable  sections  of  the  society,  implemented  several structural  reforms  to    strengthen  private  sector  investment.   These  include change  in definition of MSMEs, new PSU policy, commercialization of coal mining, higher FDI limits in defence  and  space  sector,  development  of  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 among others. Emergency Credit Line Guarantee Scheme (ECLGS) was launched to provide collateral free guaranteed loans for business enterprises in various sectors affected by COVID-19.

Following the announcements in the Union Budget 2021-22 further, capital expenditure of the government was significantly enhanced along with more than doubling of health budget. To enhance India's manufacturing capabilities  and  exports,  an  outlay  of  about  Rs.  2  lakh crore  was  announced  for  Production  Linked  Incentive  (PLI)  schemes  covering  14  key sectors  of  manufacturing.  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.

Continuing with the growth supportive measures, Union Budget 2022-23 has announced a 35.4 per cent increase in outlay of capital expenditure, PM GatiShakti National Master Plan for seamless multimodal connectivity and logistics efficiency, expansion of guarantee cover for  MSME,  infusion  of  funds  in  Credit  Guarantee  Trust  for  Micro  and  Small  Enterprises (CGTMSE) scheme, programme for Raising and Accelerating MSME Performance (RAMP), human capital formation through universalization of quality education and establishment of Digital  University,  Ease  of  Doing  Business  2.0  reforms,  Urban  Development,  Export Promotion,  Clean  &  Sustainable  Mobility,  Extension  of  Emergency  Credit  Line  Guarantee Scheme (ECLGS) by Rs 50,000 crore to total cover of Rs 5 lakh crore, among others.

(d) & (e): India's real Gross Domestic Product (GDP) contracted by 6.6 per cent in 2020-21 (1 st RE). This contraction reflects the unparalleled effect of the COVID-19 pandemic and the containment  measures  that  were  taken  to  control  the  pandemic.  The  contraction  was controlled by India's economy staging a resilient recovery in the second half of 2020-21 on the back of the nation's strong economic fundamentals combined with gradual scaling down of lockdowns and astute support of AtmaNirbhar Bharat Mission, supply-side reforms, and infrastructure push  through  National  Infrastructure Pipeline. Resultantly,  real  GDP  is estimated to undergo a growth of 9.2 per cent in 2021-22.

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