Lok Sabha Question No. 2445 (UNSTARRED), answered on 2025-08-04
Subject: Gross Domestic Product Growth
Ministry: FINANCE
Asked by: Smt. Bharti Pardhi, Shri Sanjay Haribhau Jadhav

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION No. †2445

TO BE ANSWERED ON 4 AUGUST 2025/ SRAVANA 13, 1947 (SAKA)

## GROSS DOMESTIC PRODUCT GROWTH

## †2445. Shri Sanjay Haribhau Jadhav: Smt. Bharti Pardhi:

Will the Minister of FINANCE be pleased to state:

- (a) the revised Gross Domestic Product (GDP) growth estimate for the current financial year along with the major factors contributing to this growth;
- (b) the  steps  being  taken  by  the  Government  to  attract  more  domestic  and  foreign investments in key sectors;
- (c) the progress made in ease of doing business during the last twelve months; and
- (d) the details of the current fiscal deficit as a percentage of GDP and the roadmap of the Government to adhere to the fiscal consolidation targets mentioned in the FRBM Act?

## ANSWER

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

- (a) As per the latest  available Provisional Estimates of Gross Domestic Product (GDP) released  by  the  Ministry  of  Statistics  and  Programme  Implementation,  GDP  at constant  prices  is  estimated  to  have  grown  by  6.5%  in  2024-25.  This  growth  was primarily  driven  by  robust  performance  in  the  Construction  Sector  (9.4%),  Public Administration,  Defence  &  Other  Services  (8.9%)  and  Financial,  Real  Estate  & Professional  Services  (7.2%).  Looking  ahead,  the  Economic  Survey  2024-25  has projected GDP growth for the year 2025-26 in the range of 6.3% to 6.8%.
- (b) The Government has undertaken a series of initiatives to attract greater domestic and foreign investment, focusing on robust capital expenditure, infrastructure development, financial sector reforms, and enhancing the ease of doing business. The Union  Budget  2025-26  identifies  investment  as  one  of  the  four  key  engines  of growth. Complementary measures include credit guarantee schemes, the ProductionLinked  Incentive (PLI)  Scheme, and the creation of a strong skilling ecosystem.  In addition, the Government has implemented wide-ranging and transformative Foreign Direct  Investment  (FDI)  reforms  across  sectors  such  as  Defence,  Civil  Aviation,

Pharmaceuticals, Single Brand Retail, Contract Manufacturing, Digital Media, Insurance and Space. To maintain India's appeal as an investment destination, the FDI policy is reviewed regularly and updated as needed. An investor-friendly framework is in place, with most sectors-except a few of strategic importance-open to 100% FDI under the automatic route, requiring no prior government approval.

- (c) The  Government  of  India  has  consistently  undertaken  wide-ranging  reforms  to improve  the  business  environment,  attract  investments,  and  promote  economic growth.  These  measures  include  initiatives  undertaken  under  the  Ease  of  Doing Business programme, comprising the Business Reform  Action Plan (BRAP), Business-Ready  assessment,  Jan  Vishwas  and  Reducing  Compliance  Burden  on Businesses  and  Citizens.  The  Jan  Vishwas  (Amendment  of  Provisions)  Act,  2023, decriminalised 183 provisions across 42 Central Acts, and the Jan Vishwas Bill 2.0 proposed  in  the  Union  Budget  2025-26,  aims  to  further  ease  over  100  legal provisions. Moreover, in a major push to further strengthen the business environment, BRAP  2024,  led  by  the  Department  for  Promotion  of  Industry  and  Internal  Trade (DPIIT), continues to streamline processes, reduce compliance burdens, and implement  digital  solutions,  while  expanding  on  its  initial  scope  to  cover  critical sectors  such  as  Labour,  Environment,  Taxes,  Land Administration,  Utility  Permits, Inspection  and  Construction,  and  incorporating  new  areas  like  ICT  adoption  and process reengineering through the Time and Document Study (TDS) to ensure faster and more efficient Government-to-Business service delivery.
- (d) The Union Budget 2025-26 has set the fiscal deficit target for 2025-26 at 4.4% of GDP. The Government of India's roadmap for fiscal consolidation is outlined in the Statements  of  Fiscal  Policy  presented  alongside  the  Union  Budget  2025-26,  as required under the Fiscal Responsibility and Budget Management Act, 2003. It states that 'Sans  any  major  macro-economic  disruptive  exogenous  shock(s),  and  while keeping  in  mind  potential  growth  trends  and  emergent  development  needs,  the Government would endeavour to keep fiscal deficit in each year (from FY 2026-27 till FY 2030-31) such that the Central Government debt is on declining path to attain a debt to GDP level of about 50±1 per cent by 31st March 2031 (the last year of the 16th Finance Commission cycle)'.

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