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Economic Survey 2016: India emerges as fastest growing major global economy

Economic Survey 2016 India emerges as fastest growing major global economy pardesi news 1459247810

The Economic Survey for 2015-16 presented in the Indian Parliament has predicted India's growth for the current fiscal in the 7-7.5% range.

The Finance Ministry (MoF) of India presents the Economic Survey in the parliament every year, just before the Union Budget. It is the ministry's view on the annual economic development of the country. This year, Economic Survey presented in the Indian Parliament has predicted India's growth for the current fiscal in the 7-7.5% range. The report indicated that the govt. needs to review the medium-term fiscal framework.  The fiscal deficit pegged at 3.9% of GDP, seems achievable and CPI inflation will be seen around 4.5 - 5% in 2016/17. The Economic survey of India 2014-15 said India could target foreign exchange reserves of $750 billion-$1 trillion

 

The report also suggests that Indian stock markets are more resilient than its Asian counterparts, however, India needs to prepare itself for a major currency readjustment in Asia, as done by China. Survey also says that there is need to reduce corporate tax to 25% from the existing 30%.

Govt. could sell off certain non-financial companies to infuse capital in state-run banks. The increase in wages is also recommended by the 7th Pay Commission.

The present inflation seen around 4.5-5%, and the lower oil prices expected over medium term is likely to dampen inflationary expectations.

The Percentage share of the horticulture output in agriculture is over 33%. The Fertiliser subsidy is distorting the market, govt. need to reform the agriculture sector. The report recommends that Agriculture tax should be levied on rich agriculturalists.

India is considered as fastest growing major global economy, industries should focus on excess generation capacity in the wake of Make-In-India.

 

The survey was prepared by the India’s finance ministry's chief economic adviser Arvind Subramanian.  This pre-Budget Economic Survey, a flagship annual document of the Ministry of Finance, is the summary of the economic performance of the nation in the last fiscal year. However, not all recommendations of such surveys are accepted and this year was also no exception.

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Patrick Callahan

Pardesi News Reporter

Pardesi News Reporter

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