Lok Sabha Question No. 1665 (UNSTARRED), answered on 2023-07-31
Subject: Country’s Economic Growth
Ministry: FINANCE
Asked by: Ramya  Haridas

## MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS ECONOMIC DIVISION

## LOK SABHA UNSTARRED QUESTION No. 1665 DUE FOR ANSWERED ON 31 JULY 2023

## Country's Economic Growth

## 1665.    MS. RAMYA HARIDAS:

Will the Minister of FINANCE be pleased to state:

- (a) the growth rate of the country's economy during the last ten years, year-wise;
- (b) the steps taken or proposed to be taken by the Government to increase the economic growth of the country;
- (c) whether  the  Government  has  identified  the  sources  for  resource  mobilisation  to  increase  the economic growth; and
- (d) if so, the details thereof?

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

- (a): The real and nominal growth rate of India's economy during the last ten years is given in the table below: -
- (b): The Government, over the past few years, have taken various initiatives that have contributed to the high growth of the Indian economy. Policy support has included the introduction and application of the Insolvency and Bankruptcy Code (IBC), Goods and Services Tax Reform, cut in the Corporate Tax Rate, the Make in India and Start-up India strategies, and Production Linked Incentive Schemes, among others. The Government has also focused on a capex-led growth strategy and substantially increased its capital investment outlay during the last three years.

Table: India's Real and Nominal GDP growth rate 2013-14 to 2022-23

|                  |   Real GDP growth rate |   Nominal GDP growth rate |
|------------------|------------------------|---------------------------|
| 2013-14          |                    6.4 |                      13   |
| 2014-15          |                    7.4 |                      11   |
| 2015-16          |                    8   |                      10.5 |
| 2016-17          |                    8.3 |                      11.8 |
| 2017-18          |                    6.8 |                      11   |
| 2018-19          |                    6.5 |                      10.6 |
| 2019-20 (3rd RE) |                    3.9 |                       6.4 |
| 2020-21 (2nd RE) |                   -5.8 |                      -1.4 |
| 2021-22 (1st RE) |                    9.1 |                      18.4 |
| 2022-23 (PE)     |                    7.2 |                      16.1 |

Source: National Statistical Office, Ministry of Statistics and Programme Implementation

## ANSWER

The Union Budget 2023-24 has taken further steps to sustain the high growth of India's economy. These include a substantial increase in capital investment outlay for the third year in a row by 33 per cent to ₹10 lakh crore (3.3 per cent of GDP). Direct capital investment by the Centre is also complemented by Grants-in-Aid  to  States  for  the  creation  of  capital  assets.  The  'Effective  Capital  Expenditure'  of  the Centre was accordingly budgeted at 13.7 lakh crore (4.5 per cent of GDP) for 2023-24.

(c) and (d):   The Government  has  taken  various  initiatives for  resource mobilisation, including additional resource generation, and curbing wasteful expenditure.

To generate additional resources, systemic changes have been brought in the Direct tax administration like rationalisation of corporate and personal income tax, prefilling of forms, rolling out of Common IT Return  Form  for  taxpayers'  convenience,  and  faceless  assessment  ensuring  easing  compliance  and leading to growth in direct tax revenue. The implementation of the Goods and Services Tax has also improved revenue collection. GST collections from August 2017 (since the inception of GST) to June 2023 stood at ₹80.5 lakh crore. Further, liberal, and transparent policies for attracting Foreign Direct Investment (FDI), wherein most sectors, except certain strategically important sectors, are open for 100 per cent FDI under the automatic route, have also increased FDI inflows. As per the UNCTAD World Investment Report 2022, India stood at 8 th position globally in terms of FDI inflows in 2022, with FDI inflows of USD 49 billion, making it the third-largest host country for announced greenfield projects and  the  second-largest  for  international  project  finance  deals.  The  Government  has  also  launched National Monetisation Pipeline. In the Union Budget 2022-23, the Government announced the issuance of Sovereign Green Bonds to mobilise resources for green infrastructure.

Expenditure reforms have also been undertaken, including, among others, the introduction of a Public Financial Management System (PFMS) for tracking expenditure flows; reorganisation of development schemes  leading  to  rationalisation,  merger  and  dropping  of  schemes  so  as  to  ensure  efficient management of public expenditure; introduction of Direct Benefit Transfer (DBT) in a large number of schemes  for  better  targeting  of  subsidies  and  public  expenditure;  introduction  of  e-procurement  and adoption of a Government e-Marketplace (GeM) for various Government procurements.

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