Union Minister of State in the Ministry of Statistics and Programme Implementation and Minister of State in the Ministry of Parliamentary Affairs Vijay Goel responded to a written question in Rajya Sabha today on GDP Ranking of India, Reforms in the Indian Economy, Steps taken to improve GDP growth of the country.
Following is the response given by the Minister:
Comparative position of India with respect to other countries is not maintained in the Ministry. As per the International Monetary Fund’s (IMF’s) World Economic Outlook Report (October-2018), India is the world’s seventh-largest economy in US $ among 193 countries considered in the report. This ranking is based on projections made by International Monetary Fund (IMF), for GDP (Nominal) Ranking for the year 2018.
Reforms in the Indian Economy is a continuing process and various Ministries and Departments are implementing Government’s strategic programs and policies to enhance the economic growth. NITI Aayog has specially been constituted for providing both directional and policy inputs and to enhance cooperative federalism by fostering the involvement of State Governments in the economic policy-making process using a bottom-up approach. Its initiatives include “15-year road map”, “7-year vision, strategy and action plan”.
Promoting growth of the economy has always been the utmost priority of the Government. The Government is continuously taking steps to facilitate production and GDP growth of the economy. Key initiatives taken, inter-alia, include ‘Make in India’ initiative under which thrust sectors have been identified to provide a push to manufacturing in India, ‘Startup India’ initiative and ‘Ease of Doing Business’. The Government aims at creating a conducive environment by streamlining the existing regulations and processes and eliminating unnecessary requirements and procedures. Further, Foreign Direct Investment (FDI) policy and procedures have been simplified and liberalized progressively. Other measures include special package for textile industry, concrete measures for transport sector including measures for regional connectivity and power sector via schemes like Ujjwal DISCOM Assurance Yojana (UDAY). 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. The Union Cabinet approved a significant increase in the Minimum Support Prices (MSPs) for all Kharif and Rabi crops for 2018-19 season, in order to provide major boost to farmer’s income. The Government has launched a phased program for bank recapitalization entailing infusion of capital to the public sector banks, to the tune of about Rs. 2.11 lakh crore over two financial years, which is expected to encourage banks to enhance lending.
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 for companies with turnover up to Rs.250 crore to help MSMEs, etc. The Government launched a support and outreach program for helping the growth, expansion and facilitation Micro, Small and Medium Enterprises (MSME) sector. Several initiatives have been undertaken to boost the MSME sector including improving access to credit, wider access to markets, technological up gradation of MSME through hub and spoke model etc.
In addition, efficient financial intermediation, macroeconomic stability through prudent fiscal and monetary policies are other efforts initiated by the Government to increase the GDP of the country.