All you need to know about the Economic Survey 2017-18 presented in Parliament today | business news | Hindustan Times
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All you need to know about the Economic Survey 2017-18 presented in Parliament today

The Economic Survey, which sets the stage for the NDA government’s annual budget on Thursday, forecasts that economic management will be challenging in the coming year.

business Updated: Jan 29, 2018 13:29 IST
Finance minister Arun Jaitley will present the Union Budget on February 1.
Finance minister Arun Jaitley will present the Union Budget on February 1. (PTI Photo)

India’s economy should grow between 7% and 7.5% in the 2018-19 fiscal year, with exports and private investment set to rebound, Finance Minister Arun Jaitley said, while presenting the Economic Survey for 2017-18.

The Economic Survey, which sets the stage for the NDA government’s annual budget on Thursday, forecasts that economic management will be challenging in the coming year.

The survey was prepared by the finance ministry’s chief economic adviser Arvind Subramanian, who estimates that gross domestic product will have grown 6.75% in the current fiscal year ending in March.

Here are the highlights from the survey:

Growth

* Growth in 2018-19 was seen to increase from 7% to 7.5%

* GDP growth in 2017-18 was at 6.75%

* The industrial sector grew at 4.4%, while growth in the farm sector was at 2.1% for the 2017-18 fiscal

* Economic management will be challenging in the coming year

* Biggest source of upside to growth will be from exports

* Cyclical conditions may lead to lower tax and non-tax revenues in 2017/18

* Private investment poised to rebound

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% of GDP

* Pause in general government 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% in 2017-18.