Union Finance Minister Arun Jaitley tabled Economic Survey 2017-18 in the Lok Sabha on Monday. The survey has predicted India's GDP growth to be between 7-7.5% in the financial year 2018-19.
The first Economic Survey after the introduction of Goods and Services Tax (GST) highlighted that while services sector is expected to grow for at 8.3 per cent in FY18, industrial growth will be at 4.4 per cent, and agriculture sector will grow at 2.1 per cent.
The Economic Survey is a report card of the country's financial health.
"A series of major reforms undertaken over the past year will allow real GDP growth to reach 6.75 percent this fiscal and will rise to 7.0 to 7.5 percent in 2018-19," the survey said.
The survey says that the launch of GST, resolution of the long-festering bad loans under the Bankruptcy Code, implementation of bank recapitalisation package for public sector banks and further liberalisation of foreign direct investment will lift the GDP growth.
It said that to re-ignite growth, raising investment is more important than raising saving.
"Direct tax collection by Indian states and local govts are significantly lower than those of their counterparts in other federal countries," it added.
Highlights of Economic Survey 2017-18
The report also said that there has been a significant increase in registered direct and indirect taxpayers, adding that former non-agricultural payroll is much greater than what was believed.
"States' prosperity is positively correlated with their international and inter-state trade," the survey said.
Inflation during 2017-18 averaged to the lowest in the last six years
The survey said that Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana account for 70% of India's exports.
"Maharashtra, UP, Tamil Nadu and Gujarat are the states with the greatest number of GST registrants. UP and West Bengal have been large increases in the number of tax registrants compared to the old tax regime," it further said.
Industrial output increased by 3.2% during April-November 2017-18
In the stock market, the benchmark Sensex maintained its early upward trend and was trading over 320 points higher after the Economic Survey said India is likely to clock 7-7.5 per cent growth in 2018-19, up from 6.75 per cent in the current fiscal.
Growth in production of food grains
The survey is considered as a precursor to the Union Budget 2018-19, to be announced by the Arun Jaitley on Thursday (February 1).
Foreign exchange reserves grew by 14.1% on a year-on-year basis from end of Dec 2016 to end of Dec 2017
The survey is a budget document that analyses the Indian economy over the last 12 years. It also reviews the performance of various schemes introduced by the government.
Fiscal deficit in 2017-18 estimated to be 3.2%
The document has been authored by the finance ministry's chief economic adviser, Arvind Subramanian. Subramanian has also started a web page where he has shared some details on the survey.
(Images - PIB/Twitter)
The International Monetary Fund (IMF) projected India to grow at 7.4 per cent in 2018, which will make it the fastest growing country among emerging economies. The IMF has also projected a growth rate of 7.8 per cent for India in 2019.