Lok Sabha Question No. 3838 (UNSTARRED), answered on 2025-03-24
Subject: Slow down of Economic Growth
Ministry: FINANCE
Asked by: Shri Anup Sanjay Dhotre

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3838

TO BE ANSWERED ON MONDAY, THE 24 TH  MARCH, 2025

## Slow down of Economic Growth

3838. Shri Anup Sanjay Dhotre:

Will the Minister of FINANCE be pleased to state:

- (a) the details of the performance of the economy during the last three years along with the factors responsible for the slow down, year-wise and sector-wise;
- (b) the details of the consolidation exercise made thereon and the results achieved therefrom;
- (c) the  details  of  the  growth  for  the  current  and  subsequent  years  along  with  the  changes made;
- (d) whether the Government has ensured that the benefits of the economic growth is reached to all classes of society, and not for a specific class, if so, the details thereof; and
- (e) the steps taken by the Government to manage and further boost the economic growth and to ensure equal benefits of such growth to all sections and classes of the society?

## ANSWER

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

- (a) to (c):  As  per  the  data  released  by  Ministry  of  Statistics  and  Programme Implementation, the sector-wise growth in the Indian economy over the past three years, i.e., 2021-22 to 2023-24, is presented in the table below.

| Year-on-year growth rate at constant prices (in per cent)   | Year-on-year growth rate at constant prices (in per cent)   | Year-on-year growth rate at constant prices (in per cent)   | Year-on-year growth rate at constant prices (in per cent)   |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
|                                                             | 2021-22                                                     | 2022-23 (FE)                                                | 2023-24 (FRE)                                               |
| Gross Domestic Product                                      | 9.7                                                         | 7.6                                                         | 9.2                                                         |
| Gross Value Added (GVA)                                     | 9.4                                                         | 7.2                                                         | 8.6                                                         |
| GVA in agriculture, livestock, forestry &fishing            | 4.6                                                         | 6.3                                                         | 2.7                                                         |
| Industrial GVA                                              | 12.2                                                        | 2.5                                                         | 10.8                                                        |
| Services GVA                                                | 9.2                                                         | 10.3                                                        | 9.0                                                         |

FE: Final Estimates; FRE: First Revised Estimates

Erratic  weather  patterns  and  an  uneven  spatial  distribution  of  monsoon  impacted agricultural growth in 2023-24. Growth rate in agriculture and allied sectors picked up from  2.7  per  cent  in  2023-24  to  4.6  per  cent  in  2024-25.  The  Government  has  been undertaking proactive measures to increase agricultural production and farmers' income and  promote  investor  confidence,  ease  of  doing  business,  skilling  and  job  promotion, industrial activity and overall economic growth. These measures helped India achieve a real  GDP  growth  rate  of  6.5  per  cent  in  2024-25,  despite  weaker  global  demand  and persistent  geopolitical  uncertainties  affecting exports and industrial  growth. The  Union Budget 2025-26 has assumed a nominal GDP growth of 10.1 per cent for 2025-26. As per the Economic Survey 2024-25, the real GDP growth for 2025-26 is expected to be between 6.3 and 6.8 per cent.

(d)  and  (e):  The  social  sector  initiatives  of  the  Government  have  helped  to  reduce inequality  and  increase  consumption  spending,  as  evident  from  the  results  of  the Household Consumption Expenditure Survey for 2022-23 and 2023-24, published by the Ministry  of  Statistics  and  Programme  Implementation.  The  increase  in  the  average monthly per capita consumption expenditure in 2023-24 from the level of 2022-23 has been  the  maximum  for  the  bottom  5  to  10  per  cent  of  India's  population.  The Government's  focus  on  robust  capital  expenditure,  infrastructure  build-up,  financial sector reforms, ease of doing business, agriculture, education, skill development, small and  micro  enterprises,  and  urban  development  will  help  boost  economic  growth.  The Government's inclusive approach toward development by creating robust social security systems, coupled with initiatives for affordable housing, food security, financial inclusion,  universal  access  to  basic  amenities  and  affordable  healthcare,  is  expected  to benefit all sections and classes of the society.

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