Lok Sabha Question No. 2225 (UNSTARRED), answered on 2021-03-08
Subject: Economic Activities
Ministry: FINANCE
Asked by: Thalikkottai Rajuthevar Baalu

## 2225. SHRI T.R. BAALU:

Will the Minister of FINANCE be pleased to state:

(a) whether it is a fact that decline in the economic activities reflected in the negative growth in two consecutive quarters at minus 23.9 per cent in the first quarter and minus 7.5 per cent in the second quarter, is set to post a negative growth of minus 7.7 per cent (approx) for the financial year 2020-21;

(b) if so, the measures taken by the Government to rescue the economy by increasing the level of expenditure in the context of falling growth, demand and investment during the next financial year?

## ANSWER

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

(a)  As  per  the  2 nd Advance  Estimates  of  National  Income  for  2020-21  and  Quarterly  Estimates  of  Gross Domestic Product (GDP) released by National Statistical Office (NSO), M/o Statistics and Program Implementation,  India's  GDP  growth  contracted  by  24.4  percent  in  the  first  quarter  (Q1)  and  7.3  percent  in second quarter (Q2) of FY 2020-21. GDP growth is estimated to contract by 8.0 percent in FY 2020-21.

(b) 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,  in-kind  and  cash  transfer  relief  measures  for  households, employment  provision measures under Pradhan Mantri Garib Kalyan Rojgar Abhiyaan, 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 Public Sector Enterprises 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 incentivization of 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.

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

## LOK SABHA UNSTARRED QUESTION NO. 2225

TO BE ANSWERED ON 08.03.2021

## ECONOMIC ACTIVITIES

## (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 FinTech  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 Minimum Support Price 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.

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