Question : ACHIEVEMENT OF GROWTH TARGETS

(a) whether the Government has fixed target/projection for Gross Domestic Product growth and if so, the details thereof and achievement made in this regard for each of the last three years and the current year till date;

(b) if not, the reasons therefor;

(c) whether the Government has prepared or proposes to prapare any stimulus plan to revive the flagging growth and if so, the details thereof, sector-wise along with its consistency or compatibility with the Reserve Bank of India`s (RBIs) inflation focus; and

(d) the details of economic growth achieved during the same period and measures taken or proposed to be taken in that direction?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)

(a) to (d) Annual Gross Domestic Product (GDP) growth rate targets are not fixed by the Government of India. However, the annual Economic Surveys had projected real GDP growth rates of 8.5 (+/-0.25) per cent, 9.0 (+/-0.25) per cent, 7.6 (+/-0.25) per cent and 6.1 - 6.7 per cent for 2010-11, 2011-12, 2012-13 and 2013-14 respectively. The growth rate of India’s GDP (at factor cost at constant 2004-05 prices) has been 9.3 per cent, 6.2 per cent and 5.0 per cent for 2010-11, 2011-12 and 2012-13 respectively. The growth rate of GDP in the first and second quarters of 2013-14 is 4.4 per cent and 4.8 per cent respectively. No fiscal stimulus is envisaged, as fiscal policy is on consolidation mode to facilitate growth revival.

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 and enhancement of credit to infrastructure companies; provision of greater support to micro, small and medium enterprises; 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; steps to boost manufacturing growth; fiscal consolidation through reforms viz. reduction in the subsidy of diesel and cap on the number of subsidized LPG cylinders; new gas pricing guidelines; measures to control the current account deficit and depreciation of the rupee, etc. These measures have started to yield results with significant improvement in the external situation and a modest recovery in GDP growth noticed during the second quarter of 2013-14.