GDP Growth

As per the 2nd Advance Estimates (2^nd AE) released by Central Statistics Office on 28^th February 2018, the growth rate of Gross Domestic Product (GDP) at constant (2011-12) prices is estimated to be 6.6 per cent in 2017-18, as compared to growth of 7.1 per cent in 2016-17, 8.2 per cent in 2015-16, 7.4 per cent in 2014-15 and 6.4 per cent in 2013-14. The decline in growth in 2017-18 is on account of lower growth in agriculture & allied sector, mining & quarrying and manufacturing sector. On the other hand, growth of services sector is expected to accelerate from 7.5 per cent in 2016-17 to 8.3 per cent in 2017-18.

 Promoting growth of the economy has always been the utmost priority of the government. The Government of India has taken various initiatives to boost the growth of the economy which, inter-alia, include; fillip to manufacturing, concrete measures for transport and power sectors as well as other urban and rural infrastructure, comprehensive reforms in the foreign direct investment policy and special package for textile industry, push to infrastructure development by giving infrastructure status to affordable housing and focus on coastal connectivity. For highways development the Bharatmala Pariyojana has been launched. The government has launched a phased program for bank recapitalization. This entails infusion of capital to the public sector banks, which is expected to encourage banks to enhance lending. The Insolvency and Bankruptcy Code was enacted to achieve insolvency resolution in a time bound manner. To implement the Code, the National Company Law Tribunal was established. The introduction of the Goods and Services Tax (GST) has provided a significant opportunity to improve growth momentum by reducing barriers to trade, business and related economic activities. Budget 2018-19 included various measures to provide a push to the economy, which among others, include major push to infrastructure via higher allocation to rail & road sector, reduced corporate tax rate of 25 per cent for companies with turnover up to ₹ 250 crore, which is expected to help 99 per cent of MSMEs, etc.

 This was stated by Shri Pon. Radhakrishnan, Minister of State for Finance in written reply to a question in Rajya Sabha.