- Niharika Mishra
Finance Minister Arun Jaitley tabled the all-important Economic Survey for 2017-18 on January 29. The annual survey was released ahead of the Modi government’s annual Budget statement.
Here are some key takeaways:
- Goods and Services Tax (GST) has given a new perceptive of the Indian economy and new data has emerged. There has been a 50 percent increase in the number of indirect taxpayers
- The Survey expresses concern over air pollution in Delhi with the onset of winter due to various factors.
- The Economic Survey calls for " policy vigilance" in the coming year if high oil prices persist or stock prices correct sharply.
- Indian Railways has carried 558.10 million tonnes of revenue earning freight traffic during 2017-18 (up to September 2017) as against 531.23 million tonnes during the corresponding period of previous year, showing an increase of 5.06 percent during this period.
- Manufacturing growth to rise 8 percent this year. Textile package boosted exports of key man-made ready-made garments by 16 percent.
- The Economic Survey predicts services growth for FY18 at 8.3 percent, industry growth at 4.4 percent, and agriculture growth of 2.1 percent.
- GDP to grow at 6.75 per cent this year and by 7 to 7.5 per cent in the next financial year (2018-19).
- For the first time in India‘s history, data on the international exports of states has been dwelt upon in the Economic Survey.
- The data highlighted another seemingly known fact that Indian society exhibits a strong desire for a male child.
- The Survey captures the footprint of climate change on India and consequent adverse impact on agricultural yields.
- Foreign Direct Investments (FDI) to the services sector grew by 15 percent in the first seven months of the current fiscal (April-October) due to the number of reforms undertaken by the government.
- Make in India 2.0 will accord renewed focus on ten champion sectors, including capital goods, auto, defense, pharmacy and renewable energy to push growth in manufacturing and generate job opportunities.
- The Survey noted two important developments on the trade policy front during the year – these relate to the midterm review of Foreign Trade Policy (FTP) and the recent multilateral negotiations of WTO in December 2017.
- Jobs and agriculture to be the key focus areas. Other agenda in the policy include stabilizing GST and finishing resolution of Air India plan.
What is Economic Survey?
The Economic Survey is one of the most financial indicators, based on which crucial decisions are taken by the government. Prepared by the Chief Economic Adviser Arvind Subramanian, the survey is also a financial representation of India, showing the economic conditions before the annual budget.
What to expect from this year’s budget:
Prime Minister Narendra Modi's government will be trying to attract back rural voters and small businesses and pick up economic momentum as it heads into a season of elections.
The government will present the Union Budget 2018 on February 1.