Lok Sabha Question No. 281 (STARRED), answered on 2015-12-18
Subject: GDP Growth Rate
Ministry: FINANCE
Asked by: KAUSHALENDRA KUMAR, KURUPPASSERY VARKEY THOMAS

- (a) the present growth rate of Gross Domestic Product (GDP);
- (b) whether there is a need to boost GDP growth in order to achieve optimum employment and poverty eradication and if so, the details thereof;
- (c) whether the agriculture sector is lagging behind in growth, if so, the details thereof during the last three years and the current year; and
- (d) the steps taken/being taken by the Government to boost growth rate of various sectors of the economy particularly agriculture sector in order to achieve the higher growth rate?

## ANSWER

## FINANCE MINISTER (SHRI ARUN JAITLEY)

(a) to (d): A Statement is laid on the Table of the House

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 281 BY SHRI KAUSHALENDRA KUMAR AND PROF. K.V. THOMAS DUE FOR ANSWER ON DECEMBER 18, 2015

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- (a) As per the estimates of national income released by Central Statistics Office, the growth rate in GDP at constant market prices stood at 7.2 per cent during first half of 2015-16. This growth rate was 5.1 per cent, 6.9 per cent, and 7.3 per cent respectively in 2012-13, 2013-14, and 2014-15.
- (b):  Buoyant  economic  growth  is  needed  to  create  gainful  employment  opportunities  and reduce the incidence of poverty. The growth pattern in the past two decades suggests that the reduction  in  poverty  generally  accelerated  when  growth  strengthened.  The  latest  year  for which  official  poverty  estimates  are  available  is  2011-12  and  hence  any  further  evidence cannot be elicited  from  current  trends.  The  results  of  the  Labour  Bureau's  Quarterly  Quick Employment surveys in the select labour-intensive and export-oriented sectors indicate that as economic growth improved in the last year, employment in the aforesaid sectors also picked up.
- (c) The growth rate of gross value added at constant (2011-12) basic prices of agriculture, forestry and fishing was 0.2 per cent in 2014-15, as compared to the growth of 3.7 per cent and 1.2 per cent in 2013-14 and 2012-13 respectively. During the first half of 2015-16, the growth rate of the sector works out to be 2.0 per cent. The growth in agriculture and allied sectors has been, thus, lower than overall growth during the reference period.

(d)  Government  of  India  has  taken  various  initiatives  to  accelerate  the  growth  of  the economy which, inter alia , include fillip to manufacturing and different infrastructure sectors through a variety of schemes and through higher public investment; reforms and liberalization  of  foreign  direct  investment  in  selected  sectors;  etc.  Fiscal  reforms  with emphasis  on  consolidation,  expenditure  reforms  and  rationalization  of  tax  structure,  could also contribute to higher growth. Boost to the agricultural sector is one of the prime focus areas  of  the  Government.  The  Government  is  implementing  a  number  of  schemes  which, among  others , include:  measures  to  expand  area  under  irrigation;  encouraging  organic farming  and  efficient  use  of  water;  improving  soil  fertility;  promoting  horticulture  and oilseeds;  improving  agricultural  extension  &  technology;  strengthening  crop  insurance; reforming agricultural marketing; ensuring remunerative prices; etc.

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