The document, which was tabled in Lok Sabha on Monday, noted that a series of major reforms undertaken over the past year will allow real GDP growth to reach 6.75 per cent this fiscal and will rise to 7.0 to 7.5 per cent in 2018-19.
"A series of major reforms undertaken over the past year will allow real GDP growth to reach 6.75 per cent this fiscal and will rise to 7 to 7.5 per cent in 2018-19, thereby re-instating India as the world's fastest growing major economy," it said.
The reform measures undertaken in 2017-18 can be strengthened further in 2018-19, it said.
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.
"That this growth has been achieved in a milieu of lower inflation, improved current account balance and notable reduction in the fiscal deficit to GDP ratio makes it all the more creditable," it said.
The survey also said that the real estate sector has begun to show signs of improvement with the total FDI of US $257 million in first half of 2017, which is more than double the total FDI in 2016 full year.
"With the enactment of Real Estate (Regulation & Development) Act, 2016, it is anticipated that accountability would lead to higher growth across the real estate value chain, while compulsory disclosures and registrations would ensure transparency," it said.
The economic survey is an annual document of the Ministry of Finance, Government of India, and reviews the developments in the Indian economy over the previous 12 months, summarises the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.
This document is presented to both Houses of Parliament during the Budget Session.
The annual survey was released ahead of the government's annual budget statement, due to be presented by Finance Minister Arun Jaitley on Thursday.
The survey warned that the coming year could be challenging, and cautioned that persistently high oil prices remain a key risk for a country that relies on imports for much of its fuel needs.