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Economic Survey Draws Attention to 10 New Economic Facts on Indian Economy
31 January 2018, 02:20 | Virginia Santiago
Indian economy boosted by reforms and export growth
As per Monday's forecast, India's economic growth would accelerate to 7 to 7.5 percent in the 2018/19 fiscal year, to once again become the world's fastest-growing major economy. Extreme temperature increases and deficiency in rainfall have been captured on the Indian map and the graphical changes in agricultural yields are brought out from such data. However, IT-related export percentage, compared to 2006, has come down by 1%, from 68% to 67%.
The Economic Survey 2017-18 turned out to be different both in its content and its cover, this year it sported a pink cover for a special reason meant to bring equality in economy.
The Economic Survey for 2017-18 said the GDP will grow on the back of major reforms which would be strengthened further in the next financial year. "Panchayats in Kerala, Andhra Pradesh and Karnataka do collect some direct taxes while villages in States like Uttar Pradesh nearly entirely depend on transfer funds", the Survey said. "Around $4.5 trillion worth of investments is required by India till 2040 to develop infrastructure to improve economic growth and community well-being".
The survey said the outlook for 2018-19 will be determined by economic policy in the run-up the next national election.
India's balance of payments situation, which has been benign and comfortable since 2013-14, continued to be so in the first half of 2017-18, despite some rise in the Current Account Deficit (CAD) in the first quarter, with a relatively lower CAD in the second quarter.
The survey, an annual report card on the health of the economy, was released ahead of the government's budget statement which will be presented by Finance Minister Arun Jaitley on Thursday.
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China expects its economy to slow to a 6.5-6.8 per cent growth rate this year which would cede the top slot to India.
Even as India grapples with an agrarian crisis, the Economic Survey 2017-18 has painted a grim outlook for the country's farm sector, predicting that incomes of farmers may decline by as much 25% in some areas due to the impacts of climate change.
However, the Economic Survey also hinted for a "pause" in fiscal consolidation. "For every $10 increase in the price of crude oil, we could see a shaving off of growth by 0.2 per cent. we had earlier thought crude prices could not go up beyond $55 a barrel".
During the 2007-08 to 2016-17 period, domestic passenger traffic registered a compound annual growth rate (CAGR) of 9.89 per cent.
It also suggested a "radical follow-up action" to achieve the goal of doubling farmers' income by 2022 as it saw climate change likely to increase the burden on already stressed agricultural economy.
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