India to grow 7-7.5% in FY18, retain fastest-growing economy tag
The Economic Survey 2017-18, tabled in the Lok Sabha at the start of the Budget Session, has pegged India's GDP growth in the next year at 7-7.5%. This fiscal, it will reach 6.75%, thanks to several major reforms including GST, bank recapitalization, FDI liberalization and higher exports, the report said. Here's all you need to know about the Economic Survey.
What is the Economic Survey?
The annual Economic Survey, drafted by the chief economic adviser's team under the finance ministry, reviews developments in the last 12 months, summarizes the state of the economy, highlights government policies and predicts future growth. It is tabled in both Houses right ahead of the Budget. Though it usually makes recommendations for future policies, the proposals aren't binding on the government.
How different is this year's survey from previous ones?
Earlier, the Economic Survey was a single volume presentation containing two parts, the first being a commentary and the second, statistics. However, with last year's rescheduling of the Budget presentation by a month, the Survey was tabled in two volumes: the commentary part in January last week, and the updated stats in July-August. The 2018-19 Budget is to be presented on February 1.
India grew fastest among major economies since few years
During 2014-18, India's average growth (7.3%) was 4 percentage points higher than the global average, and 3 points higher than that of developing economies, the Survey noted. In the current fiscal, the gross value added (GVA) is likely to grow by 6.1%, compared to 6.6% in 2016-17. A preliminary analysis of GST has shown indirect taxpayers increased 50%.
More details on GST
What does the Survey predict for the next fiscal?
The Economic Survey predicts agriculture growth in 2018-19 at 2.1%, industry growth at 4.4% and service growth at 8.3%. If high oil prices persist, the government should adopt "policy vigilance," it said. The export sector will be the biggest source of upside to growth. A pause in government fiscal consolidation can't be ruled out. Direct tax collections are expected to meet targets.
