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Economic Survey: Cautious & optimistic, CEA sees India beating China growth

Economic Survey 2018 is a flagship annual document of the Finance Ministry that reviews the overall state of the economy

BS Web Team  |  New Delhi 

Economic Survey 2018
Chief Economic Advisor Arvind Subramanian talks about the Economic Survey 2018

Vigilance required against a likely stock market bubble: Economic Survey The Economic Survey 2017-18 called for a vigil against a likely stock market bubble and that "sustaining" the current high valuations require "future earnings" to meet high expectations.   According to Chief Economic Advisor Arvind Subramanian, past examples have shown that asset prices have a tendency to pull-back after they rise sharply. "The higher the prices go, I think our vigilance should increase correspondingly," Subramanian said. Judicial reforms next frontier to improve World Bank's Ease of Doing Business ranking, says Economic Survey   Even as India jumped 30 places to break into the top 100 countries on ease of doing business for the first time, the next frontier is addressing pendency, delays and backlogs in the appellate and judicial arenas, according to the Economic Survey for 2017-18.   It added that India's ranking would get a further boost by the implementation of GST, which was not taken account of in this year's report.   According to the Economic Survey 2017-18, the judicial pendency, delays and backlogs were hampering dispute resolution and contract enforcement, discouraging investment, stalling projects and hampering tax collections.   The Survey report said they were also stressing taxpayers and escalating legal costs. Economic Survey more optimistic than what was projected last year, says NITI Aayog VC Rajiv Kumar Kumar said growth prediction of 7-7.5 per cent as per the survey is definitely achievable.   "GST has been largely beneficial; and now, with the introduction of the e-way bill, tax collections will be made more seamless," he said.   Kumar said that he expected Budget 2018-19 to focus on solving health and education-related problems of the common man and the adoption of a holistic approach to doubling farmers' income. Economic Survey testifies Modi government's economic mismanagement, says Congress   The Economic Survey has affirmed "utter mismanagement" of India's economy by the Narendra Modi government in the last four years, the Congress said on Monday, after the Economic Survey 2017-18 was tabled in Parliament.   "The GDP growth is down, agriculture is in utter disarray, rural wages are declining, industrial growth is plunging, job creation figures are invisible, fresh Investment is low, education and health spending is in crises and 'Make in India' is floundering," Congress spokesman Randeep Singh Surjewala said. "By the Economic Survey's own admission, the informal sector has been severely impacted thanks to demonetisation and flawed GST," Surjewala said. Economic Survey gives no proof to support growth claims, says P Chidambaram   Picking holes in the growth projections made by the Economic Survey, senior Congress leader and former Union Finance Minister P. Chidambaram said the Survey offered "little evidence" in support of its claims and added that the fiscal is likely to end with a growth rate of "between 6 and 6.5 per cent".   Calling the Survey as a "refreshingly candid document that has brought to surface internal contradictions within the government", Chidambaram pointed out that as per the document, the future course of economy is conditional on many "ifs". Make in India 2.0 to focus on these ten key sectors   Make in India 2.0 will accord renewed focus on ten champion sectors, including capital goods, auto, defence, pharma and renewable energy to push growth in manufacturing and generate job opportunities, the Economic Survey said.   The other sectors are biotechnology, chemicals, electronic system design and manufacturing, leather, textiles, food processing, gems & jewellery, construction, shipping, and railways.

The 2017-18, tabled in on Monday, forecasts gross domestic product growth for 2018-19 at 7-7.5 per cent, compared with a forecast of 6.75 per cent in the current fiscal year.

“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 per cent in 2018-19, thereby re-instating India as the world‘s fastest growing major economy,” an official statement said, after the tabling of the survey, adding that “the reform measures undertaken in 2017-18 can be strengthened further in 2018-19.

The survey said that due to the launch of ‘transformational’ Goods and Services Tax (GST), resolution of the long-festering Twin Balance Sheet (TBS) problem by sending the major stressed companies for resolution under the new Indian Bankruptcy Code, implementing a major recapitalisation package to strengthen the public sector banks, further liberalisation of FDI and the export uplift from the global recovery, the economy began to accelerate in the second half of the year.

In a highlighted box titled “Ten New Facts on the Indian Economy”, the survey stated that there was a large increase in registered direct and indirect tax payers due to demonetization and respectively, and that formal non-agricultural payroll was much greater than earlier anticipated.


It is a flagship annual document of the Finance Ministry. It reviews the overall state of the economy in the last 12 months. In August last year, however, the government for the first time presented a mid-term

First Published: Mon, January 29 2018. 22:13 IST
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Economic Survey: Cautious & optimistic, CEA sees India beating China growth

Economic Survey 2018 is a flagship annual document of the Finance Ministry that reviews the overall state of the economy

Economic Survey 2018 is a flagship annual document of the Finance Ministry that reviews the overall state of the economy
The 2017-18, tabled in on Monday, forecasts gross domestic product growth for 2018-19 at 7-7.5 per cent, compared with a forecast of 6.75 per cent in the current fiscal year.

“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 per cent in 2018-19, thereby re-instating India as the world‘s fastest growing major economy,” an official statement said, after the tabling of the survey, adding that “the reform measures undertaken in 2017-18 can be strengthened further in 2018-19.

The survey said that due to the launch of ‘transformational’ Goods and Services Tax (GST), resolution of the long-festering Twin Balance Sheet (TBS) problem by sending the major stressed companies for resolution under the new Indian Bankruptcy Code, implementing a major recapitalisation package to strengthen the public sector banks, further liberalisation of FDI and the export uplift from the global recovery, the economy began to accelerate in the second half of the year.

In a highlighted box titled “Ten New Facts on the Indian Economy”, the survey stated that there was a large increase in registered direct and indirect tax payers due to demonetization and respectively, and that formal non-agricultural payroll was much greater than earlier anticipated.


It is a flagship annual document of the Finance Ministry. It reviews the overall state of the economy in the last 12 months. In August last year, however, the government for the first time presented a mid-term

image
Business Standard
177 22

Economic Survey: Cautious & optimistic, CEA sees India beating China growth

Economic Survey 2018 is a flagship annual document of the Finance Ministry that reviews the overall state of the economy

The 2017-18, tabled in on Monday, forecasts gross domestic product growth for 2018-19 at 7-7.5 per cent, compared with a forecast of 6.75 per cent in the current fiscal year.

“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 per cent in 2018-19, thereby re-instating India as the world‘s fastest growing major economy,” an official statement said, after the tabling of the survey, adding that “the reform measures undertaken in 2017-18 can be strengthened further in 2018-19.

The survey said that due to the launch of ‘transformational’ Goods and Services Tax (GST), resolution of the long-festering Twin Balance Sheet (TBS) problem by sending the major stressed companies for resolution under the new Indian Bankruptcy Code, implementing a major recapitalisation package to strengthen the public sector banks, further liberalisation of FDI and the export uplift from the global recovery, the economy began to accelerate in the second half of the year.

In a highlighted box titled “Ten New Facts on the Indian Economy”, the survey stated that there was a large increase in registered direct and indirect tax payers due to demonetization and respectively, and that formal non-agricultural payroll was much greater than earlier anticipated.


It is a flagship annual document of the Finance Ministry. It reviews the overall state of the economy in the last 12 months. In August last year, however, the government for the first time presented a mid-term

image
Business Standard
177 22