Lok Sabha Question No. 816 (UNSTARRED), answered on 2015-07-24
Subject: Economic Growth
Ministry: FINANCE
Asked by: SHIVKUMAR CHANABASAPPA UDASI, KRISTAPPA NIMMALA, S.P. MUDDAHANUMEGOWDA, R. VANAROJA, RODMAL NAGAR, (ADV.) JOICE GEORGE

- (a)  the  Gross  Domestic  Product  (GDP)  growth  during  the  last  three  years  along  with projected/estimated growth during 2015-16;
- (b)  the  contribution  of  various  sectors  viz.  agriculture,  infrastructure,  manufacturing  and service  sectors  during  the  last  three  years  and  the  projected/estimated  growth  of  these sectors during 2015-16;
- (c) whether the prevailing adverse global economic situation particularly in Europe is likely to have an adverse impact on the GDP growth rate during the current year, if so, the details thereof; and
- (d)  The  steps  taken  by  the  Government to achieve  higher growth rate including boosting manufacturing,  infrastructure,  agriculture  and  service  sectors  along  with  administrative steps to develop  a competitive and  less onerous  tax structure to  boost  business environment?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

- (a) The growth rate of Gross Domestic Product (GDP) at constant (2011-12) market prices is estimated at 5.1 per cent, 6.9 per cent and 7.3 per cent respectively in 2012-13, 2013-14 and 2014-15 (Provisional Estimates). According to the Economic Survey 2014-15, the growth in the Indian economy can be expected to be in the range of 8.1 to 8.5 per cent in 201516.
- (b) The contribution of various sectors to the Gross Value Added (GVA) at basic prices in the last three years is given in the following table.

| Contribution of various sectors in the Gross Value Added (GVA) at basic prices (Per cent)   | Contribution of various sectors in the Gross Value Added (GVA) at basic prices (Per cent)   | Contribution of various sectors in the Gross Value Added (GVA) at basic prices (Per cent)   | Contribution of various sectors in the Gross Value Added (GVA) at basic prices (Per cent)   | Contribution of various sectors in the Gross Value Added (GVA) at basic prices (Per cent)   |
|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
| Sectors                                                                                     | 2011-12                                                                                     | 2012-13                                                                                     | 2013-14                                                                                     | 2014-15(PE)                                                                                 |
| i. Agriculture, forestry & fishing                                                          | 18.4                                                                                        | 18.0                                                                                        | 18.0                                                                                        | 17.0                                                                                        |
| ii. Industry                                                                                | 33.1                                                                                        | 31.9                                                                                        | 30.7                                                                                        | 30.0                                                                                        |
| Mining & quarrying                                                                          | 3.2                                                                                         | 3.1                                                                                         | 2.8                                                                                         | 2.4                                                                                         |
| Manufacturing                                                                               | 18.1                                                                                        | 17.9                                                                                        | 17.3                                                                                        | 17.2                                                                                        |
| Electricity, gas ,water supply & other utility services                                     | 2.4                                                                                         | 2.3                                                                                         | 2.3                                                                                         | 2.4                                                                                         |
| Construction                                                                                | 9.4                                                                                         | 8.7                                                                                         | 8.3                                                                                         | 8.0                                                                                         |
| iii. Services                                                                               | 48.5                                                                                        | 50.0                                                                                        | 51.3                                                                                        | 53.0                                                                                        |
| GVA at basic prices (i+ii+iii)                                                              | 100.0                                                                                       | 100.0                                                                                       | 100.0                                                                                       | 100.0                                                                                       |
| Source: Central Statistics Office.                                                          | Source: Central Statistics Office.                                                          | Source: Central Statistics Office.                                                          | Source: Central Statistics Office.                                                          | Source: Central Statistics Office.                                                          |

The Government has not made sector-wise growth projections for the year 2015-16.

- (c)  As  per  the  World  Economic  Outlook  Update,  July  2015,  global  growth  is  likely  to remain stable during 2015 as compared to 2014, while the growth in the Euro area is

expected to rise during the year. The growth of India is also likely to accelerate in the financial year 2015-16.

(d) The Government of India has taken various initiatives to improve the growth rate of the economy which, inter alia , include; fillip to manufacturing and infrastructure through fiscal incentives and concrete measures for transport, power, and other urban and rural infrastructure;  liberalization  of  foreign  direct  investment  in  selected  sectors;  Skill  India and Digital India initiatives; measures to de-bottleneck the supply of key raw-materials like  coal  which  would  help  manufacturing  and  infrastructure  sectors;  'Make  in  India' initiative along with the attendant facilitatory measures for a more conducive environment  for  investment;  financial  inclusion  though  'Pradhan  Mantri  Jan  Dhan Yojana'  which  also  helps  to  strengthen  banking  and  insurance  services;  boost  to agricultural sector with focus on micro irrigation, watershed development, soil conservation and credit, and, various measures to improve clarity and transparency in economic  policy-making.  Fiscal  reforms  with  emphasis  on  consolidation,  expenditure reforms and rationalization of tax structure, including initiatives on Goods and Services Tax, are also expected to contribute to higher growth.

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