Lok Sabha Question No. 3970 (UNSTARRED), answered on 2022-03-28
Subject: Impact of Russia-Ukraine War on Economy
Ministry: FINANCE
Asked by: A. Ganeshamurthi, Mukesh Rajput

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

## LOK SABHA

## UNSTARRED QUESTION NO. 3970 TO BE ANSWERED ON 28 MARCH 2022

## IMPACT OF RUSSIA-UKRAINE WAR ON ECONOMY

3970. SHRI A. GANESHAMURTHI: SHRI MUKESH RAJPUT:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has made any review of the economy consequent upon the break-out of war between Russia and Ukraine;
- (b) if so, the details thereof;
- (c) the extent to which it would be a setback for the economic recovery for the world and India in particular; and
- (d) the measures taken by the Government to bolster the economy?

## ANSWER

## MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHURY)

(a) to (c): The geopolitical tension between Russia and Ukraine has led to global supply disruptions resulting in  steep  increase  in  global  commodity  prices  including  prices  of  crude  oil,  gas,  edible  oils  and  fertilizers, among others. Government of India is closely monitoring the global price movements and their impact on India's  economy  through  trade.  As  per  second  Advance  Estimates  released  by  National  Statistical  Office, India's GDP in 2021-22 is estimated to grow at 8.9 per cent, which will take the country's GDP past the most recent pre-pandemic output of 2019-20, to complete the recovery process.

- (d): Budget 2022-23 has announced measures for taking India's GDP to a higher growth path. Some of the important budget measures announced include:
-  Increased outlay for capital expenditure from Rs. 5.54 lakh crore in 2021-22 to Rs. 7.50 lakh crore in 2022-23.
-  Greater  focus  on  PM  GatiShakti,  ensuring  inter-ministerial  coordination  in  infrastructure  building  for economic transformation, seamless multimodal connectivity and logistics efficiency.
-  Construction  of  25,000  km  highways,  and  village  roads  under  PM  Gram  Sadak  Yojana  to  further increase rural consumption by way of creating employment in small towns and cities.
-  Replacement of Special Economic Zones Act with a new legislation to enable States to become partners in 'Development of Enterprise and Service Hubs Export'.
-  Extension of Emergency Credit Line Guarantee Scheme (ECLGS) up to March 2023 and its guarantee cover to be expanded by Rs. 50,000 crore to help the micro  and small enterprises in hospitality and related services regain their pre-pandemic level of business.
-  Raising and Accelerating MSME Performance (RAMP) programme with outlay of Rs. 6,000 crore over 5 years to help the MSME sector become more resilient, competitive and efficient.
-  Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme to facilitate additional credit of Rs. 2 lakh crore for Micro and Small Enterprises and expand employment opportunities.
-  'One Station-One Product' in Railways to be popularized to help local businesses and supply chains.
-  Centre for Processing Accelerated Corporate Exit (C-PACE) to be established for speedy winding-up of companies.

Further, to ensure security of crude supplies and to mitigate the risk of dependence on crude oil from single region, Oil Public Sector Undertakings (PSUs) have diversified its petroleum basket and are procuring crude from  countries  located  at  various  geographical  locations  viz.  Middle  East,  Africa,  North  America,  South America etc. In addition, Government is also committed to supporting initiatives for releases from Strategic Petroleum Reserves, for mitigating market volatility and calming the rise in crude oil prices.