India’s economic growth has been pegged at 6.5 per cent for the current fiscal, down from 7.6 per cent recorded in the last financial year, but is expected to rebound in the range of 6.75-7.5 per cent in 2017-18. The Economic Survey for 2016-17, tabled in the Parliament by Finance Minister Arun Jaitley today, underlined the need for more reforms.
The Survey’s GDP growth figure for the current fiscal is lower than 7.1 per cent the Central Statistics Office had forecast earlier this month.
Here are the highlights of the Economic Survey 2016-17 tabled in Parliament today:
* GDP growth for next fiscal pegged at 6.75-7.5 per cent
* Growth this fiscal to be 6.5 per cent
* Prescribes cut in individual I-T rates, real estate stamp duties
* Income Tax net could be widened gradually by encompassing all high income earners
* Time table for cutting corporate tax should be accelerated
* Tax administration could be improved to reduce discretion and improve accountability
* Growth to return to normal as new currency comes in circulation
* Demonetisation to affect growth rate by 0.25-0.5 per cent, but to have long-term benefits
* GST, other structural reforms should take the trend growth rate to 8-10 per cent
* Fiscal windfall likely from Pradhan Mantri Garib Kalyan Yojana, low oil price
* Farm sector to grow at 4.1 per cent this fiscal, up from 1.2 per cent last year
* Fiscal gains from GST will take time to realise
* Demonetisation may affect supplies of certain agricultural products like sugar, milk, potatoes and onions
* Growth rate of industrial sector to moderate to 5.2 per cent this fiscal, from 7.4 per cent last fiscal
* Efforts to collect taxes on disclosed and undisclosed wealth should not lead to tax harassment
* Universal Basic Income Scheme is an alternative to plethora of state subsidies for poverty alleviation.