SHRI Y.S. CHOWDARY Will the Minister of FINANCE be pleased to satate :- (a) whether GDP growth rate in the first year of Twelfth Plan will remain below 5 per cent;
(b) if so, the details thereof and the reasons therefor; and
(c) the steps taken or being taken by Government to boost the GDP growth rate?
ANSWER
FINANCE MINISTER (SHRI P. CHIDAMBARAM)
(a) to (c): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO RAJYA SABHA STARRED QUESTION NO. 119 BY SHRI Y. S. CHOWDARY REGARDING “STEPS FOR BOOSTING GDP GROWTH RATE” FOR ANSWER ON AUGUST 13, 2013
As per the provisional estimates released by the Central Statistics Office (CSO), the growth rate of Gross Domestic Product (GDP) measured at factor cost at constant (2004-05) prices, in the first year of the Twelfth Plan (2012-13) is estimated to be 5.0 per cent. The Government has taken several steps to revive growth in the economy that, inter alia, include measures to speed up project implementation via the creation of the Cabinet Committee on Investment (CCI); boost to infrastructure financing by encouraging Infrastructure Debt Funds, enhancement of credit to infrastructure companies; provision of greater support to MSMEs; strengthening of financial and banking sectors, etc. Initiatives by the Government also include liberalisation of FDI norms in several sectors including telecom; deregulation of the sugar sector; decision to launch inflation indexed bonds to incentivize households to save in financial instruments; fiscal consolidation through fiscal reforms viz. reduction in the subsidy of diesel, cap on the number of subsidised LPG cylinders; new gas pricing guidelines, etc. The Government has taken several measures to increase exports, contain imports and attract foreign investment in order to reduce the current account deficit and improve the outlook of the external sector. Some of these measures include raising the rate of interest subvention from 2 to 3 per cent that will benefit exporters of small and medium enterprises, hike in import duty on gold, etc.
(a) whether it is a fact that industrial growth has slowed during the last three years;
(b) if so, the details thereof;
(c) what are the sectors that have shown slackness;
(d) what are the factors that have contributed for this; and
(e) the steps taken/being taken by Government to accelerate the industrial growth?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)
(a)&(b): The industrial growth measured in terms of Index of Industrial Production (IIP) has steadily increased during the last three years from 2.5 percent in 2008-09 to 5.3 percent 2009-10 and 8.2 percent in 2010-11. In the current year during Apr-Oct, 2011, the industrial growth is moderate to 3.5% compared to a growth of 8.7% in the corresponding period of the previous year. (c): The sectoral growth for the last three years and the current year is indicated below:-
(d): Factors that have contributed to the moderation in industrial growth during the current year, among others include moderation in the rate of growth of consumption expenditure, underperformance of the construction sector, hardening of interest rates resulting in increase in the cost of capital and global economic uncertainty.
(e): Various steps have been taken by the government to boost industrial production which, inter-alia, include promotion and facilitation of industrial investment including the foreign direct investment; improvement in business environment; development of industrial and other infrastructure through public private initiatives; incentivizing research and development; and development of industry related skills. Government in November, 2011 also announced a National Manufacturing Policy, which aims at making industry globally competitive.
SHRI Y.S. CHOWDARY Will the Minister of FINANCE be pleased to satate :- (a) whether GDP growth rate in the first year of Twelfth Plan will remain below 5 per cent;
(b) if so, the details thereof and the reasons therefor; and
(c) the steps taken or being taken by Government to boost the GDP growth rate?
ANSWER
FINANCE MINISTER (SHRI P. CHIDAMBARAM)
(a) to (c): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO RAJYA SABHA STARRED QUESTION NO. 119 BY SHRI Y. S. CHOWDARY REGARDING “STEPS FOR BOOSTING GDP GROWTH RATE” FOR ANSWER ON AUGUST 13, 2013
As per the provisional estimates released by the Central Statistics Office (CSO), the growth rate of Gross Domestic Product (GDP) measured at factor cost at constant (2004-05) prices, in the first year of the Twelfth Plan (2012-13) is estimated to be 5.0 per cent. The Government has taken several steps to revive growth in the economy that, inter alia, include measures to speed up project implementation via the creation of the Cabinet Committee on Investment (CCI); boost to infrastructure financing by encouraging Infrastructure Debt Funds, enhancement of credit to infrastructure companies; provision of greater support to MSMEs; strengthening of financial and banking sectors, etc. Initiatives by the Government also include liberalisation of FDI norms in several sectors including telecom; deregulation of the sugar sector; decision to launch inflation indexed bonds to incentivize households to save in financial instruments; fiscal consolidation through fiscal reforms viz. reduction in the subsidy of diesel, cap on the number of subsidised LPG cylinders; new gas pricing guidelines, etc. The Government has taken several measures to increase exports, contain imports and attract foreign investment in order to reduce the current account deficit and improve the outlook of the external sector. Some of these measures include raising the rate of interest subvention from 2 to 3 per cent that will benefit exporters of small and medium enterprises, hike in import duty on gold, etc.
(a) whether it is a fact that industrial growth has slowed during the last three years;
(b) if so, the details thereof;
(c) what are the sectors that have shown slackness;
(d) what are the factors that have contributed for this; and
(e) the steps taken/being taken by Government to accelerate the industrial growth?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)
(a)&(b): The industrial growth measured in terms of Index of Industrial Production (IIP) has steadily increased during the last three years from 2.5 percent in 2008-09 to 5.3 percent 2009-10 and 8.2 percent in 2010-11. In the current year during Apr-Oct, 2011, the industrial growth is moderate to 3.5% compared to a growth of 8.7% in the corresponding period of the previous year. (c): The sectoral growth for the last three years and the current year is indicated below:-
(d): Factors that have contributed to the moderation in industrial growth during the current year, among others include moderation in the rate of growth of consumption expenditure, underperformance of the construction sector, hardening of interest rates resulting in increase in the cost of capital and global economic uncertainty.
(e): Various steps have been taken by the government to boost industrial production which, inter-alia, include promotion and facilitation of industrial investment including the foreign direct investment; improvement in business environment; development of industrial and other infrastructure through public private initiatives; incentivizing research and development; and development of industry related skills. Government in November, 2011 also announced a National Manufacturing Policy, which aims at making industry globally competitive.
