Just days few days of the Union Budget 2018 annuncement, Economic Survey was revealed in both the houses of the parliament today by the Finance Minister.
While it had growth projections of between 7 and 7.5% for 2018-19 several concerns pertaining to the overall Indian economy was also raised
Highlights of economic survey 2017-18
1. As against the GDP estimates that come in advance which was pegged for the financial year at 6.5%,the economic survey has revised it at 6.75%. Hence painting better growth prospects going forward.
2. GST implementation has also received accolades with increase in the count of indirect taxpayers. Some other moves such as the export performance vis a vis standard of the state also came to the fore.
Moves such as demonetisation and GST have brought in a higher degree of tax compliance with apprx addition of 1.8 million taxpayers until November 2017.
3. Growth for the financial year 2018-19 is being pegged to grow at the rate of between 7-7.5%.
4. Growth for the agriculture and services sector for the financial year 2018 is pegged at 2.1% and 8.3% respectively. At the same time, industrial growth is likely to be 4.4%
5. Given the current continuous surge in crude oil which has now inched to USD 70 per barrel, the economic survey has called for a " policy vigilance". This is due to the fact that surge in oil prices impacts the trade of the country and at a broader level impacts WPI inflation and rates in the economy.
6. The IBC or insolvency and bankruptcy code can come as a drastic solution to the ever persistent problem in the corporate sector.
7. On the inflation front, the economy has now moved to more stability in prices in the recent four years time with CPI inflation until October 2017 remaining well below the RBI's safe target of 4%.
8. Export outlook is also positive with the prospects of exports pegged at the rate of 12.1% and CAD likely to average at 1.5-2% of the GDO figure in 2017-18.
9. The survey also highlighted a total investment need of close to $4.5 trillion towards infrastructure by the year 2040.
10. The climatic changes impact on the agriculture has also been studied with temperature increases and significant drop in rainfall. On the non-irrigated premise, the impact was found to be twice as high in comparison to irrigated lands.