Discussion Topic: Economic Survey: Key Takeaways

Introduction: The Economic Survey, as the name suggests, is a document which gives an update on the state of the economy. The data provided is normally something we are all conversant with as it collates the latest information on every sector and presents the same in a comprehensive form. There are some projections made by the Survey which relates to GDP and finally there are suggestions made on various aspects of the economy. The present Survey is not very different in scope but takes a lot of trouble to highlight some of the major achievements of the policies that have been implemented in the last year.

The survey also recommends that the budget should be pragmatic and not aim for extreme fiscal targets meaning, that the fiscal deficit targets should not be a number which can not be achieved. It hence signals that there are pressures that have to be address such oil prices, pre-election, indirect tax collections, non-tax revenue etc. While the survey suggestion is not binding this may give a clue that the fiscal deficit target for Financial Year 2019 will not be 3% but something higher. In this edition of the Big Picture we will analyse the takeaways from the Economic Survey.

Some Key Points

• GDP to growth to be 6.75% in FY 2017-18
• GDP to grow 7 - 7.5% in FY 19
• India to regain fastest growing economy tag
• Policy vigilance required if high oil prices persist
• GST data shows 50% rise in indirect taxpayers
• Urban migration leading to feminisation of farm sector
• FDI in services sector rises 15% in 2017-18 on reforms
• Retail inflation averaged 3.3% in 2017-18, lowest in 6 fiscals
• India needs to address pendency, delays in judicial arena 
• India's export structure more egalitarian than other counties
• Priority to social infrastructure like education, health
• Technology should be used for better enforcement of labour laws

Source & Courtesy: Rajya Sabha TV