Revival of economy from slowdown

As per the estimates available from Central Statistics Office, Growth of Gross Domestic Product (GDP) at constant prices was 6.8 per cent in 2018-19, lower as compared to 7.2 per cent in 2017-18. However, the growth of investment picked up along with higher capacity utilization in manufacturing sector and higher growth of private consumption in 2018-19. The growth in fixed investment picked up from 9.3 per cent in 2017-18 to 10.0 per cent in 2018-19. The 44th round of the Order Books, Inventories and Capacity Utilisation Survey conducted by Reserve Bank of India, shows a gradual improvement with higher capacity utilization in the manufacturing sector in first three quarters of 2018-19 (the latest data available), as compared to corresponding quarters of previous year. The growth of private final consumption expenditure was 8.1 per cent in 2018-19, as compared to 7.4 per cent in 2017-18. The production growth in manufacturing sector as measured by growth of index of industrial production (IIP) - manufacturing, however, slowed down to 3.5 per cent in 2018-19 from 4.6 per cent in 2017-18. Data from Employee Provident Fund Organization indicates increase in the net employment generation in the formal sector from 4.86 lakh in February 2018 to 10.43 lakh in April 2019. The Periodic Labour Force Survey (PLFS) report estimates the unemployment rate in India at 6.1 per cent as per usual status basis and 8.9 per cent as per current weekly status basis in 2017-18. However, PLFS unemployment rates cannot be compared to the unemployment rates estimated in reports of previous years, as such reports are not comparable to PLFS report in terms of the methodology used in estimating the unemployment rates.

Various Proposals/ representations/ suggestions relating to the amendments in tax laws are examined at the time of the preparation of the Finance Bill and the outcome of the same is reflected in the Finance Bill tabled before the Parliament.

Economic growth is high on the agenda of the Government. Various reforms are being undertaken by the Government in many spheres to improve GDP growth. The key reforms in Government’s new term include expansion to all farmers the cash transfer scheme “PM-Kisan” providing an income support of ₹ 6000/- per year, which was earlier limited to farmers with a land holding of less than 2 hectares. Along with this, Government has also launched voluntary pension scheme for small and marginal farmers and small shopkeepers or retail traders. Further to give focused attention to issues of growth, the Government has constituted a five-member cabinet committee on investment and growth chaired by Hon’ble Prime Minister. Earlier measures taken by the Government for growth promotion, inter-alia, include historic support and outreach programme for the Micro, Small and Medium Enterprises (MSME) sector, expansion and facilitation of MSMEs across the country, liberalization of FDI policy and introduction of the Goods and Services Tax. The Government aims at creating a conducive environment for manufacturing sector by streamlining the existing regulations and processes. ‘Make in India’ programme has been launched which aims at making India a global hub for manufacturing, research & innovation and an integral part of the global supply chain. Several steps to boost domestic manufacturing are being taken as part of schemes such as ‘Startup India’, ‘Ease of Doing Business’, Business Reform Action Plan, Intellectual Property Rights (IPR) policy etc.

This was stated by Smt. Nirmala Sitharaman, Union Minister of Finance & Corporate Affairs in a written reply to a question in Rajya Sabha.