Economic Survey 2018 tabled in Lok Sabha: GDP growth pegged at 7-7.75%, India to be fastest growing economy again

Economic Survey 2018: For 2017-18, the survey said, the GDP is set to expand by 6.75 per cent, thus reinstating India's position as world's fastest-growing major economy. Gross Value Added (GVA) is expected to grow by 6.1 per cent in 2017-18 as compared to 6.6 per cent in 2016-17, it said.

By: ENS Economic Bureau

New Delhi | Updated: January 29, 2018 01:59 PM IST

4 min read

Finance Minister Arun Jaitley along with Arvind Subramanian Chief Economic Adviser to the government at a press conference in New Delhi. Express Photo by Renuka Puri

Aiming at a GDP growth rate of 6.75 per cent in the current financial year, the Economic Survey 2017-18, tabled by the Union Finance Minister Arun Jaitley on Monday, projected a GDP growth of 7 to 7.5 per cent in the financial year 2018-19. “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,” said the Economic Survey 2017-18. The survey said that the reform measures undertaken in 2017-18 could be further strengthened in the next year.

The survey also pointed out that the GDP growth has averaged 7.3 per cent for the period from 2014-15 to 2017-18, which is the highest among the major economies of the world. Even as it projected a higher growth rate, the survey highlighted that factors such as increase in crude oil prices in the international market may have a dampening effect on GDP growth in the coming year. It, however, pointed several factors that would support higher growth. “With world growth likely to witness moderate improvement in 2018, expectation of greater stability in GST, likely recovery in investment levels, and ongoing structural reforms, among others, should be supporting higher growth,” it said.

The Economic Survey also pointed out that the GDP growth has averaged 7.3 per cent for the period from 2014-15 to 2017-18, which is the highest among the major economies of the world

Amid rising concerns over the growing protectionist tendencies in some countries, the survey said, “It remains to be seen as to how the situation unfolds.” The survey underlined that measures such as launch of Goods and Services Tax, resolution of twin balance sheet problem by sending the major stressed companies for resolution under the new Indian Bankruptcy Code, implementation of recapitalisation package to strengthen the public sector banks and further liberalisation of FDI have helped the economy to accelerate in the second half of the year and it can clock 6.75 percent growth this year.

Finance Minister Arun Jaitley coming out of Parliament after tabling the Economic Survey. (Express photo by Renuka Puri)

According to a preliminary analysis of the Goods and Services Tax data in the Economic Survey, there has been a 50 per cent increase in the number of indirect taxpayers, besides a large increase in voluntary registrations, especially by small enterprises that buy from large enterprises and want to avail themselves of Input Tax Credits (ITC).

The Survey for the first time incorporates data on the international exports of states. The data indicates a strong correlation between export performance and states’ standard of living. “States that export internationally and trade with other states were found to be richer. Such correlation is stronger between prosperity and international trade,” the Survey said.

It further said that five states — Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana – accounted for 70 per cent of India’s exports.

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