The government tabled the Economic Survey of India in the Budget session of Parliament. The Survey projected India’s GDP to grow at 7-7.5 per cent in FY 2018-19. The Union Budget is presented on February 1.
- Economic Survey pegs 2018-19 GDP growth at 7-7.5 per cent; says current high oil prices a major concern.
- GDP to expand by 6.75 per cent in 2017-18, re-instating India as world’s fastest growing major economy, says Economic Survey tabled in Parliament.
- Economy accelerated in second half of current fiscal due to GST, bank recapitalisation, liberalisation of FDI and higher exports.
- Post-demonetization and GST increase in new tax filers (over and above natural increase) of about 1.8 million and some boost to individual income tax collections
- Demonetisation has encouraged financial savings
- Insolvency Code being actively used to resolve NPA woes
- Preliminary analysis of the Goods and Services Tax data reveals 50 per cent increase in the number of indirect taxpayers
- Textile package boosted exports of key man-made ready-made garments by 16 percent.
- Policy agenda for next year — support agriculture, privatise Air India, finish bank recapitalisation
- Tax collection by states, local governments significantly lower than those in other federal countries
- Retail inflation averaged 3.3 pc in 2017-18, lowest in last 6 fiscals
- Urban migration leading to feminisation of farm sector
- Rs 20,339 cr approved for interest subvention for farmers in current fiscal
- FDI in services sector rises 15% in 2017-18 on reforms
- Fiscal federalism, accountability to help avoid low equilibrium trap
- India’s external sector to remain strong on likely improvement in global trade
- Technology should be used for better enforcement of labour laws
- Swachh Bharat initiative improved sanitation coverage in rural areas from 39% in 2014 to 76% in January 2018
- Priority to social infrastructure like education, health to promote inclusive growth
- Centre, states should enhance cooperation to deal with severe air pollution
- Survey 2017-18 in pink colour to highlight gender issues
- Indian parents often continue to have children till they have desired number of sons
The Agriculture growth in FY18 likely to be at 2.1%, while the Industry growth for FY18 likely to be 4.4%.
Services growth for FY18 likely to be at 8.3% and the country’s economy should witness improvement in next fiscal year.