Lok Sabha Question No. 212 (STARRED), answered on 2022-08-01
Subject: Indian Economy
Ministry: FINANCE
Asked by: Margani Bharat

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

## LOK SABHA STARRED QUESTION NO. 212

TO BE ANSWERED ON 01 AUGUST 2022

## INDIAN ECONOMY

## 212. SHRI MARGANI BHARAT:

Will the Minister of FINANCE be pleased to state:

- (a) whether the first detailed analysis of pandemic by the Reserve Bank of India (RBI) indicates that there is Rs.52 lakh crores output losses during the last three years;
- (b) if so, the details thereof;
- (c) whether the Indian economy would be able to overcome these losses only by 2034-35;
- (d) if so, the details of short, medium and long-term strategies which are going to be adopted by the Government to deal with this; and
- (e) the efforts being made by the Government to push capital expenditure and attract more and more private investment, capacity addition, etc.?

## ANSWER

## MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

- (a) to (e): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO. 212 ON 'INDIAN ECONOMY' RAISED BY SHRI MARGANI BHARAT DUE FOR ANSWER ON 01.08.2022

…..

(a) to (c): The Reserve Bank of India (RBI) has not done any such analysis. The analysis of the staff from the Department of Economic and Policy Research (DEPR) of the RBI, which is published  in  the  Report  of  Currency  and  Finance,  2021-22,  and  which,  as  clarified  by  the RBI, does not represent the views of the RBI, states that the loss of potential output induced by  the  pandemic  will  be  recovered  by  2034-35.    The  National  Statistical  Office  (NSO)  of Ministry of Statistics and Programme Implementation (MoSPI), has released in May, 2022, the Provisional Estimates (PE) of National Income for 2021-22.  The PE show that the output in  2021-22  has  recovered  the  output  level  of  2019-20  thereby  completing  the  recovery process and overcoming the loss of output induced by the pandemic in 2020-21.

(d) & (e): To limit the damage inflicted by the pandemic on the economy and initiate quick recovery of economic growth, Government had announced a comprehensive package under AtmaNirbhar Bharat (ANB) Mission. It initiated a slew of supply-side structural reforms to lend flexibility and resilience to supply chains. Union Budget 2021-22 also announced a number of measures to support broad-based and inclusive economic development including a 34.5 per cent  increase  in  capital  expenditure  and  137  per  cent  increase  in  health  expenditure.  The earlier  announced  National  Infrastructure  Pipeline  (NIP)  and  subsequently  the  Production linked Incentive (PLI) scheme, further gave impetus to investment and growth. Union Budget 2022-23  next  announced  various  measures  including  PM  GatiShakti  to  ensure  interministerial  coordination  in  infrastructure  building  for  economic  transformation;  issuance  of sovereign green bonds for mobilizing resources for green infrastructure; and further increase in outlay for capital expenditure. The outlay for capital expenditure increased from Rs. 5.54 lakh crore in 2021-22 to Rs. 7.50 lakh crore in 2022-23. It increases further to Rs.10.68 lakh crore, or 4.1 per cent of GDP, after including Grants-in-Aid to State Governments for capital works.  The  structural  reforms  and  the  policy  push  under  the  AtmaNirbhar  Bharat  Mission along  with  the  measures  announced  in  the  Union  Budget  2021-22  and  2022-23  towards achieving  broad-based  inclusive  growth  will  strengthen  the  fundamentals  of  the  economy elevating it to a strong and sustainable growth path.

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