India's External Sector Continues to be Strong Says the Economic Survey

Joy Montgomery
January 31, 2018

The survey said the outlook for 2018-19 will be determined by economic policy in the run-up the next national election.

Productivity will have to be increased, and price and income volatility reduced, against the backdrop of increasing resource constraints, according to the latest Economic Survey.

Fuelled by stronger private investment and exports, the recovery forecast for India's growth rate comes after the country posted its slowest growth in three years in 2017/18.

"There has been considerable progress in Roads, Railways, Metro Rail, Shipping, Civil Aviation, Power and Logistics Infrastructure Sectors that is expected to step up the growth momentum in the short term", it noted.

In a statement here, he said that what is worse, the Indian Survey has not unveiled even the crucial concern of India that was highlighted by the World Economic Report on India recently. It said that the reform measures undertaken in 2017-18 can be strengthened further in 2018-19.

Congress President Rahul Gandhi today took a swipe at the Modi government after the Economic Survey was released, saying "Acche Din" are here, except for "minor hiccups" such as a decrease in the growth of GDP, agriculture and job creation.

Chidambaram said though the survey says growth rate for 2017-18 will be 6.75 per cent, implying a second half growth rate of 7.5 per cent, it offers little evidence in support of this claim.

State police: 5 killed in shooting at Pennsylvania car wash
The victims were identified as three men and two women, but their names and further information have not been revealed. Police identified the victims as: William Porterfield, 27, Chelsie Cline, 25, Seth Cline, 21, and Courtney Snyder, 23.

Elevated stock prices are a matter of concern and could correct sharply if they are not backed by growth, requiring "heightened vigilance", Chief Economic Adviser Arvind Subramanian said on Tuesday.

The survey cautioned that certain factors could dampen GDP growth in the coming year, such as the possibility of an increase in crude oil prices in the worldwide market.

Large increase in voluntary registrations under GST, especially of small enterprises has led to greater formalization of the economy. He added that there is a need to see why the Indian economy de-coupled from the rest of the economy over 3-4 quarters. They should stabilize the GST.

As per the Economic Survey, the collective effect of demonetisation and the GST was such that it added close to 18 lakh new taxpayers.

"The level of tax filers by November 2017 was 31 percent greater than what this trend would suggest, a statistically significant difference".

"India's exports continuing to be in positive territory for the fourth consecutive month in May 2017 and in double digits in April-May 2017", it said. This means the interest rates could be lowered.

"GDP growth might be at the lower end of the range, but broadly the estimates are in line with our expectations", said Suvodeep Rakshit, senior economist at Kotak Institutional Equities in Mumbai.

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