New Delhi: The Indian economy slowed in 2016-17, with gross domestic product falling dramatically from 8 percent in 2015-16 to 7.1 percent next year, the government said on Friday.
Finance Minister Arun Jaitley said that slower economic growth reflects lower growth in the industry and service sectors, due to a number of factors including structural, external, fiscal and monetary factors.
He said in the Lok Sabha that the lowest rate of global economic growth in 2016, together with a reduction in the ratio of gross investment fixed to GDP, the balances of the business sector, the lower growth of credit in the industrial sector were some of the reasons for the low growth rate in 2016-17.
“Slower growth in 2016-17 reflects lower growth in the industrial and services sector, and a country’s economic growth depends on a number of factors including structural, external, fiscal and monetary factors,” he said during the shift. questions.
According to the latest estimates of the Central Bureau of Statistics, the growth rate of the Gross Domestic Product (GDP) at constant prices was 7.5%, 8.0% and 7.1% respectively in 2014-15, 2015-16 and 2016-17.
GDP growth at constant market prices was 5.7 percent and 6.3 percent in the first quarter (first quarter) and the second quarter (second quarter) of 2017-18, respectively.
Jaitley said that despite the slowdown, according to the IMF, India was the fastest growing major economy in 2016 and the second largest economy with the highest growth in 2017 in the world.
He said the government has taken various initiatives to boost the growth of the economy, including boosting manufacturing, concrete measures for the transport and energy sectors, as well as other urban and rural infrastructures, comprehensive reforms in foreign direct investment policy and special package for the textile industry
The minister said the government had also announced several measures in the 2017-18 budget to promote growth, which included a boost to infrastructure development by granting infrastructure status to affordable housing, increased allocation to road construction and attention to coastal connectivity.
“Bharatmala Pariyojana was launched for the development of motorways, and the government launched a staged program for bank recapitalization, which involves injecting capital into public sector banks, which is expected to encourage banks to improve their loans” , He said.
Jaitley said the Bankruptcy and Insolvency Code was enacted to achieve the insolvency resolution in a limited manner over time.
He said that the other growth promotion measures included a lower income tax for companies with an annual turnover of up to Rs. 50 million rupees, additional measures to improve the ease of doing business and a significant boost to the digital economy.
Jaitley said that according to the information available from the Reserve Bank of India, the gross (pending) bank credit for agriculture and related sectors was Rs. 9,923.87 billion from 2016-17 against Rs. 8,829.42 billion as in 2015-16.
“The introduction of the tax on goods and services (GST) has provided a significant opportunity to improve growth momentum by reducing barriers to trade, business and related economic activities,” he added.