Economic Survey 2018


The Economic Survey:

The Economic Survey, an annual publication of the Finance Ministry, is presented in both houses of Parliament during the Budget Session. It is a review of the developments in the country’s economy over the previous one year.  It also details the main policy initiatives of the government.
Economic Survey 2018
  • FM Jaitley tables Economic Survey in Parliament.
  • Economic Survey sees FY19 GDP growing 7-7.5% vs 6.75% in FY18.
  • Economic Survey sees average crude oil prices rising 12% in FY19.
  • Due to higher expected increase in imports, net exports of goods and services are slated to decline in 2017-18.
  • Exports biggest source of the boost to growth.
  • GVA growth seen at 6.1% vs 6.6% in FY17.
  • GST data shows growth of 50% in the number of indirect taxpayers.
  • Real GDP to clock 6.75% this FY.
  • Average FY18 CPI inflation seen at 3.7%.
  • Services Growth seen at 8.3%, Industries at 4.4%.
  • Agriculture, industry and services sectors are expected to grow at the rate of 2.1%, 4.4%, and 8.3% respectively in 2017-18.
  • It points out that the GDP growth has averaged 7.3% for the period from 2014-15 to 2017-18, which is the highest among the major economies of the world.
  • Demonetisation helped share of financial saving to rise. The ratio of domestic saving to GDP reached 29.2 percent in 2013 to a peak of 38.3 percent in 2007, before falling back to 29 percent in 2016.
  • Sanitation coverage in rural India increased substantially from 39 percent in 2014 to 76 percent in January 2018. With the launch of Swachh Bharat Mission (Gramin) on October 2, 2014, the sanitation coverage in rural India increased substantially. So far, 296 districts and 307,349 villages all over India have been declared Open Defecation Free (ODF).
  • India is gradually improving its performance in Science and Technology. In 2013, India ranked 6th in the world in scientific publications. Its ranking has been increasing consistently. The growth of annual publications between 2009 to 2014 was almost 14%. This increased India’s share in global publications from 3.1% in 2009 to 4.4% in 2014 as per the Scopus Database.
  • The foreign exchange reserves grew by 14.1% on a year-on-year basis from the end of Dec 2016 to end of Dec 2017. The forex reserves as per 2016-17 were estimated at USD 370 billion. It grew to USD 409.4 billion in 2017-18.
  • For the first time in India‘s history, data on the international exports of states has been dwelt in the Economic Survey. Such data indicates a strong correlation between export performance and states‘ standard of living. States that export internationally and trade with other states were found to be richer.
  •  India’s exports are unusual in that the largest firms account for a much smaller share of exports than in other comparable countries. Top one percent of Indian firms account only for 38% of exports unlike in other countries where they account for substantially greater share – (72, 68, 67 and 55 percent in Brazil, Germany, Mexico and USA respectively).
  • Rs.20,339 crore has been approved by the Government in 2017-18 to meet various obligations arising from interest subvention being provided to the farmers on short-term crop loans, as also loans on post-harvest storages meet an important input requirement of the farmers in the country, specially small and marginal farmers who are the major borrowers.
  • FDI equity inflows to the services sector grew by 15% during 2017-18 (April-October). It has been possible because the Government has undertaken a number of reforms to ensure that India remains an increasingly attractive investment destination, which includes announcement of National Intellectual Property Rights (IPR) policy, implementation of GST, reforms for ease of doing business.