(LiveMint)
The Indian economy is expected to expand at 7-7.5% in the next financial year, 2018-19, the Economic Survey 2017-18, presented by finance minister Arun Jaitley in Parliament on the first day of the Budget session, said. The Survey, authored by chief economic adviser in the finance ministry Arvind Subramanian, said the economy is likely to grow at 6.75% in 2017-18 against 6.5% estimated by the Central Statistics Office (CSO).
The Survey underlines that due to the launch of the transformational goods and services tax (GST) reform on 1 July 2017, resolution of the long-festering twin-balance sheet problem by sending major stressed companies for resolution under the new Indian Bankruptcy Code, implementing a major recapitalization package to strengthen the public sector banks, further liberalization of foreign direct investments and the export uplift from the global recovery, the economy began to accelerate in the second half of the year and can clock 6.75% growth this year.
The Survey said the major risk to India’s growth story next fiscal could emanate from rise in crude oil prices in the international market. “However, with world growth likely to witness moderate improvement in 2018, expectation of greater stability in GST, likely recovery in investment levels, and ongoing structural reforms, among others, should be supporting higher growth,” it added.
