Lok Sabha Question No. 110 (UNSTARRED), answered on 2023-12-04
Subject: Gross Domestic Product
Ministry: FINANCE
Asked by: Sunil Dattatray Tatkare

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

## LOK SABHA UNSTARRED QUESTION NO. 110 TO BE ANSWERED ON DECEMBER 4, 2023

## GROSS DOMESTIC PRODUCT

## 110. SHRI SUNIL DATTATRAY TATKARE:

## Will the Minister of FINANCE

Be pleased to state:

- (a) whether it is a fact that Gross Domestic Product expanded significantly during the last five  decades  but  this  economic  growth  did  not  uniformly  benefit  all  segments  of  the society;
- (b) if so, the details thereof;
- (c) whether  it  is  a  fact  that  middle  income  and  low-income  groups'  share  in  the  national income  decreased  during  the  last  five  decades  in  contrast  the  top  10  per  cent  income group saw their share increase resulting in a growing income gap in the country;
- (d) if so, the details thereof; and
- (e) the  steps  taken  or  proposed  to  be  taken  by  the  Government  to  control  the  income inequality and skewed distribution of prosperity among different income groups?

## ANSWER

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

(a)-(b): In the last five decades (1972-73 to 2022-23), India's Gross Domestic Product in real terms increased by 15 times, registering a Compound Annual Growth Rate (CAGR) of 5.5 per cent.

(c)-(d): In India, the data on class distribution of income is not compiled centrally. However, household  consumption  expenditure  data  collected  by  the  National  Sample  Survey  Office (NSSO) could be used as a proxy to capture the economic disparity in terms of consumption expenditure. The  latest data of the  Large  Sample  Survey  on  Household  Consumer Expenditure has been collected by NSSO in its 68th round conducted in 2011-12. The Gini coefficient (measuring the inequality between different expenditure classes of the population) in rural areas is observed to be almost the same in 2004-05 and 2011-12 at 0.27 and 0.28, respectively. In the urban areas, the Gini coefficient has increased marginally from 0.35 in 2004-05 to 0.37 in 2011-12.

(e): The primary policy objective of the Government is the development of all segments of the population. Its focus on inclusive growth is reflected in its commitment to Sabka Saath Sabka Vikas to reduce poverty and inequality, provide social security, income generation and livelihood options, and improve the quality of life of the vulnerable sections of the population in the country.

In  this  regard,  the  Government is implementing a number of targeted programmes such as Pradhan  Mantri  Awas  Yojana  (PMAY),  Mahatma  Gandhi  National  Rural  Employment Guarantee  Act  (MGNREGA),  Deendayal  Antyodaya  Yojana  -  National  Rural  Livelihoods Mission (DAY-NRLM), National Social Assistance Programme (NSAP), Pradhan Mantri Jan Dhan Yojana (PMJDY), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), Pradhan  Mantri  Suraksha  Bima  Yojana  (PMSBY),  Pradhan  Mantri  Jeevan  Jyoti  Bima Yojana,  Atal  Pension  Yojana,  Pradhan  Mantri  Mudra  Yojana,  Stand  Up  India  Scheme, Umbrella  Programmes  for  Development  of  Minorities  and  Other  Vulnerable  Groups; Rashtriya Krishi Vikas Yojna; fund transfer under PM-KISAN, PM Fasal Bima Yojana claim payments; fertiliser subsidies; interest subvention for dairy cooperatives; Agri-Infrastructure Fund  for  farm  gate  infrastructure  etc.  Further,  the  Government  is  implementing  various programmes, including  Jal  Jeevan  Mission,  Swachh  Bharat  Abhiyan,  PM  Ujjwala  Yojana, PM Saubhagya Yojana, Ayushman Bharat, etc., to bring about overall improvement in the quality of life of the people through universal access to basic amenities.

During  COVID-19,  the  Government  made  several  targeted  interventions  to  mitigate  the adverse impact of the pandemic on the lives and livelihoods of the people, particularly the vulnerable  sections  of  the  society  through  the  Pradhan  Mantri  Garib  Kalyan  Yojana (PMGKY), implemented since April 2020. These included, inter alia, the world's largest free food program, cash transfers to women Jan Dhan account holders, insurance cover for health workers fighting COVID-19, increase in MGNREGA wages, assistance to low-wage earners in organised sectors, etc.

The Budget 2023-24 has indicated 'Inclusive Development' as one of its priority areas and has proposed many measures to ensure this goal. This inter-alia includes several initiatives for  the  agriculture  sector  (such  as  digital  public  infrastructure  for  agriculture,  Agriculture Accelerator Fund, focus on cotton crop and horticulture, making India a global hub for millet, enhanced  agriculture  credit  target,  etc.;  skilling,  health  and  education.  The  Budget  further proposed to launch the Pradhan Mantri PVTG Development Mission to improve the socioeconomic conditions of the particularly vulnerable tribal groups (PVTGs) so as to saturate PVTG families and habitations with basic facilities such as safe housing, clean drinking water and  sanitation,  improved  access  to  education,  health  and  nutrition,  road  and  telecom connectivity, and sustainable livelihood opportunities.

***********