Lok Sabha Question No. 2081 (UNSTARRED), answered on 2016-07-29
Subject: Growth Rate of Sectors
Ministry: FINANCE
Asked by: SHIVKUMAR CHANABASAPPA UDASI

- (a) the growth rate of services, manufacturing, mining and agriculture sectors during 201415 nd 2015-16;
- (b) the reasons responsible for lower growth rate in services, manufacturing mining and agriculture sector; and
- (c) the corrective steps taken by the Government in this regard?

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

- (a)  The growth rates of Gross Value Added (GVA) at constant (2011-12) basic prices for services, manufacturing, mining & quarrying and agriculture & allied sectors during 2014-15 and 2015-16 are given below:
- (b) While the growth in manufacturing in 2015-16 was distinctly higher than that in 2014-15, the growth in agriculture & allied sectors improved, albeit modestly, during 2015-16, despite the second consecutive year of sub-normal monsoon. Major reasons for the moderation in growth  rates  in  services, inter-alia ,  include:  decline  in  the  growth  of  transport,  storage, communication and broadcasting services;  decline  in  the  growth  of  public  administration, defence and other services, partly due to fiscal consolidation; and, the slow growth in world output and external trade. In the case of mining & quarrying, the growth in 2015-16 was lower,  partly  due  to  the  high  base  effect  created  by  the  elevated  growth  in  2014-15.  The growth rate of the mining & quarrying sector was still high at 7.4 per cent in 2015-16.
- (c) Steps have been taken by the Government to strengthen service sector activities which, inter-alia , include: policy initiatives like Start-up India, Digital India, Skill India, Smart Cities and  comprehensive  FDI  reforms  from  which  various  service  sector  activities  will  receive impetus;  identification  of  thrust  areas  under  the  'Make  in  India'  programme  from  certain services; and, stress laid on social services like health and education. Mining activities are likely  to  get  a  boost  from;  the  system  of  e-auction  of  coal  mines  being  successfully implemented by the Government to bring about transparency in the allocation of coal mines; and, setting up of the skilling council for mining sector.

| Table 1: Growth rate of GVA at constant (2011-12) basic prices (per cent)   | Table 1: Growth rate of GVA at constant (2011-12) basic prices (per cent)   | Table 1: Growth rate of GVA at constant (2011-12) basic prices (per cent)   |
|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Sectors                                                                     | 2014-15                                                                     | 2015-16 (PE)                                                                |
| Services                                                                    | 10.3                                                                        | 8.9                                                                         |
| Manufacturing                                                               | 5.5                                                                         | 9.3                                                                         |
| Mining & quarrying                                                          | 10.8                                                                        | 7.4                                                                         |
| Agriculture, forestry & fishing                                             | -0.2                                                                        | 1.2                                                                         |
| Source: Central Statistics Office, PE: Provisional Estimates                | Source: Central Statistics Office, PE: Provisional Estimates                | Source: Central Statistics Office, PE: Provisional Estimates                |

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