Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018

Home » Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018

Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018

Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018

Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018 -Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018

  • Economic Survey is the flagship Annual Document of the Ministry of finance.
  • It gives a detailed account of the various sectors of the economy and overall economic scenario of the country in the past years and provides an outline for the year ahead.
  • Economic survey is presented every year before presenting the Union Budget.
  • India’s first Economic Survey was presented in the year 1950-51.
  • Up to 1964, it was presented along with the Union Budget.
  • From 1964 onwards, it has been delinked from the Budget.
  • The first draft of the economic survey is prepared by the department of economic affairs in the finance ministry.
  • The first draft of the economic survey is prepared by the department of economic affairs in the finance ministry.
  • The final version is scrutinized by the Finance Secretary and Finance Minister.
  • The constitution of India neither uses word budget or economic survey.
  • Union Finance Minister gives the final approval before the Economic Survey is tabled in Parliament but the government is not obliged to follow any recommendations made in the document.

 

  • The purpose of tabling the Economic Survey in Parliament is to explain the backdrop of the Budget for the next one year.
  • Parliament is made aware about the economic and financial health of the country before it scrutinizes and clears the Budget

Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018

Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018

  1. The GDP growth rate for the fiscal year 2017-2018 is pegged at 6.75% by the Economic Survey report. The government, in its advance GDP estimate, had estimated a growth of 6.5%.
  2. In the fiscal year 2019, the survey said that the Indian economy is expected to grow between 7% and 7.5%. The International Monetary Fund (IMF) has also said that India could grow at 7.4% in the current year 2018, as against China’s 6.8%.
  3. On the implementation of the Goods and Service Tax (GST), the survey said that there has been a 50% increase in number of indirect taxpayers; Large increase in voluntary registrations; distribution of GST base closely linked to size of economies; strong correlation between export performance and state’s standard of living and India’s formal sector was found to be substantially greater than currently believed.
  4. The level of tax filers by November 2017 was 31% greater. The economic survey said that it translated roughly into about 1.8 million additional taxpayers due to demonetization-cum-GST, representing 3% of existing taxpayers.
  5. The Agriculture growth in FY18 likely to be at 2.1%, while the Industry growth for FY18 likely to be 4.4%.
  6. Services growth for FY18 likely to be at 8.3% and the country’s economy should witness improvement in next fiscal year.
  7. The IBC resolution process could prove a valuable technology for tackling this long-standing problem in the Indian corporate sector.
  8. The apparel sector has immense potential to drive economic growth, increase employment, and empower women in India. This is especially true as China’s share of global apparel exports has come down in recent years. However, India has not, or not yet, capitalized on this opening.
  9. In the last three fiscal years, India experienced a positive term of trade shock. But in the first three quarters of 2017-18, oil prices have been about 16 percent greater in dollar terms than in the previous year (Table 1). It is estimated that a $10 per barrel increase in the price of oil reduces growth by 0.2-0.3 percentage points, increases WPI inflation by about 1.7 percentage points and worsens the CAD by about $9-10 billion dollars. Economic Survey calls for “policy vigilance” in coming year if high oil prices persist or stock prices correct sharply.
  10. The Headline inflation has been below 4 per cent for twelve straight months, from November, 2016 to October, 2017 and CPI food inflation averaged around one per cent during April-December in the current financial year. The Survey observes that the economy has witnessed a gradual transition from a period of high and variable inflation to more stable prices in the last four years.
  11. Current account deficit expected to average 1.5-2% of the GDP this fiscal, while export growth is paged at 12.1%.
  12. The survey said that India will need $4.5 trillion investment in infrastructure by 2040.

 

Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018

Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018

Economic Survey 2018 Highlights pdf -Indian Economic Survey 2018

Growth Of Indian Economy and Sectors 

  1. 2018-19 Growth seen at 7 pct to 7.5 pct y/y
  2.  2017-18 GDP growth seen at 6.75 pct y/y
  3. 2017-18 industry growth seen at 4.4 pct
  4. 2017-18 farm sector growth seen at 2.1 pct
  5. Economic management will be challenging in the coming year
  6. Biggest source of upside to growth to be from exports
  7. Cyclical conditions may lead to lower tax and non-tax revenues in 2017-18
  8. Agriculture, industry and services sectors are expected to grow at the rate of 2.1 per cent, 4.4 per cent, and 8.3 per cent respectively in 2017-18
  9. The survey adds that after remaining in negative territory for a couple of years, growth of exports rebounded into positive one during 2016-17 and expected to grow faster in 2017-18.
  10. However, due to higher expected increase in imports, net exports of goods and services
    are slated to decline in 2017-18.
  11. GST data reveals 50% increase in number of Indirect Taxpayers
  12. Economic Survey says-Maharashtra, Gujarat, Karnataka, Tamil Nadu & Telangana account for 70% of India‟s exports
  13. India‟s internal trade in goods and services is 60 percent of GDP.

Fiscal Deficit 

  1. Target for fiscal consolidation specially in a pre-election year can carry a high risk of credibility .
  2. Current Account deficit for 2017-2018 expected to be 1.5 to 2 percent of GDP.10 Important Facts  Indian Economic Survey 
  3. Indian Economic Survey Download link – Volume 1 And Volume 2 
  4. Fiscal deficit overshot target by 12 per cent till November. Likely to normalise as the year progresses.
  5. Demonetisation helped in increasing share of financial savings.
  6. Pause in general government fiscal consolidation cannot be ruled out in 2017/18
  7. Suggests modest (fiscal) consolidation that signals a return to the path of gradual but steady deficit reductions

 

Note – Updating This post 

By |2018-04-05T22:02:03+00:00January 29th, 2018|Categories: Current Affairs|0 Comments

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