Big takeaways from economic survey

The survey points out that India can be rated as among the best performing economies in the world Photograph:( WION Web Team )

WION Web Team New Delhi, Delhi, India Jan 29, 2018, 07.42 AM (IST)

Finance Minister Arun Jaitley on Monday tabled the economic survey in Parliament which noted that the reform measures undertaken in 2017-18 can be strengthened further in 2018-19. The survey points out that India can be rated as among the best performing economies in the world as the average growth during last three years is around four percentage points higher than global growth and nearly three percentage points higher than that of emerging market and developing economies.

It said that the GDP growth has averaged 7.3 per cent from 2014-15 to 2017-18, which is the highest among the major economies of the world.

Here are the key takeaways from economic survey 2017-18:

GROWTH

  • India's gross domestic product (GDP) growth for 2018-19 pegged at 7-7.5 per cent, current high oil prices a major concern.
  • GDP to expand by 6.75% in 2017-18, re-instating India as world's fastest growing major economy.
  • Economic management will be challenging in the coming year.
  • Biggest source of upside to growth to be from exports.
  • Cyclical conditions may lead to lower tax and non-tax revenues in 2017-18.
  • Private investment poised for rebound.
  • 2017-18 farm sector growth seen at 2.1 per cent.

FISCAL DEFICIT

  • Target for fiscal consolidation specially in a pre-election year can carry a high risk of credibility
  • Current account deficit for 2017/18 expected to average 1.5-2 per cent of GDP
  • Pause in general govt fiscal consolidation cannot be ruled out in 2017-18
  • Suggests modest (fiscal) consolidation that signals a return to the path of gradual but steady deficit reductions

INFLATION, POLICY RATES

  • Persistently high oil prices remain a key risk, to affect inflation
  • If inflation doesn`t deviate from current levels policy rates can be expected to remain stable
  • Average CPI inflation seen at 3.7 per cent in 2017-18

OTHER HIGHLIGHTS

  • Economy accelerated in second half of current fiscal due to GST, bank recapitalisation, liberalisation of FDI and higher exports.
  • Gross Value Added (GVA) expected to grow by 6.1 per cent in 2017-18 as compared to 6.6 per cent in 2016-17.
  • Preliminary analysis of the Goods and Services Tax (GST) data reveals 50% increase in the number of indirect taxpayers.
  • There is need to address pendency, delays and backlogs in the appellate and judicial arenas.
  • "Policy vigilance" in coming year if high oil prices persist or stock prices correct sharply.
  • India has performed better on 14 out of 17 key indicators.