The Economic Survey is presented by the ministry of Finance in the parliament every year, before the Union Budget. The Economic Survey reviews the developments of the Indian economy over the previous 12 months, summarizes the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.
It is the Finance Ministry’s view on the annual economic development of the country that gives a broad idea on the macro-economic data, which will impact the budget decisions.
This year the report is authored by chief economic adviser Arvind Subramanian. It contains data of various macroeconomic indicators which reflect the state of the economy such as Gross Domestic Product, Gross National Product, Inflation rate, foreign exchange trends, balance of payments etc.
The Economic Survey for 2015-16 was tabled in Parliament by Union Finance Minister Arun Jaitley.
Major Highlights of Economic Survey 2015-16:
• GDP growth rate for 2015-16 to be in the range of 7 % to 7.75 %
• Low inflation has taken hold and confidence in price stability has improved
• Services continues to be key driver; expected to be 9.2% in 2015-16
• Foreign exchange reserves have risen to US $349.6 (Jan-2016)
• Govt. will meet its fiscal deficit target of 3.9 per cent of GDP.
• Agriculture sector needs a transformation to ensure sustainable livelihoods for farmers and food security.
• Informal sector has created jobs and keeping unemployment low
• India can become the leading investment destination owing to its robust macroeconomic fundamentals.
• Reserve Bank of India will meet 5 per cent inflation target by the end of March 2017
• Reform package for the fertilizer Sector
• Indian Equity market relatively resilient compared to other major emerging market economies
• Impressive strides made in the power sector in the last two years
• It projects 7.6 per cent economic growth rate in 2015-16
• It highlights the importance and potential of spreading JAM Trinity across the Indian economy
• India ranks first in milk production, accounting for 18.5% of world production
• Medium-term growth trajectory at 7-7.75% with downside risk. Downside risk to medium term growth due to global economic condition
• Increase in wages recommended by the 7th Pay Commission not likely to de-stabilize prices, will have little impact on inflation.
• India’s long run potential GDP Growth is substantial, about 8 to 10%
• Bank accounts for over 200 million people under Pradhan Mantri Jan Dhan Yojan have been created.
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