The Economic Survey 2018 has pegged FY19 GDP growth at 7-7.5%. The Finance Minister Arun Jaitley on Monday tabled the Economic Survey 2017-18 in the lower house. [ Full text of Economic Survey 2017-18 ]
The Survey has said that India can be rated as among the best performing economies in the world as the average growth during the last three years is around 4 percentage points higher than the global growth.
“A series of major reforms undertaken over the past year will allow real GDP growth to reach 6.75 percent this fiscal and will rise to 7 to 7.5 percent in 2018-19, thereby re-instating India as the world’s fastest growing major economy,” said the Survey, which was tabled in Parliament by Finance Minister Arun Jaitley on Monday.
However, it said the current high oil prices are a major concern.
Chief Economic Advisor Arvind Subramanian said, “the major achievements of the past year include the Goods and Services Tax, resolution of the Twin Balance Sheet (TBS) problem by sending the major stressed companies for resolution under the new Indian Bankruptcy Code, implementing a major recapitalisation package to strengthen the public sector banks, further liberalisation of FDI and the export uplift from the global recovery.”
This was also validated by the first upgrade in sovereign ratings in 14 years, he noted.
A possible increase in global crude oil prices could dampen growth expectations next fiscal, said the Survey, while expressing hope that recovery in investments, improved global growth outlook and stabilisation of GST will however help pick up the domestic economy.
It expects the fiscal deficit to remain contained at 3.2 per cent of the GDP in 2017-18 and CPI inflation to remain at an average 3.3 per cent.
The pink coloured document, which takes stock of the economy ahead of the presentation of the Budget for the next fiscal, also said that employment, education and agriculture will be the key focus areas in the medium term. “Above all, India must continue improving the climate for rapid economic growth on the strength of the only two truly sustainable engines—private investment and exports,” it stressed.
Finance Minister Aurn Jaitley will table the Union Budget 2018-19 in Parliament on February 1.
The Economic Survey -- a flagship annual document of the Finance Ministry -- is a report card on the economy during the ongoing fiscal. It also indicates the Government's priorities and thrust areas for the upcoming Budget on Thursday.