Economic Survey 2018 Part 2 - Finance Ministry

   

Economic Survey 2018 Part 2

Why is this article relevant for IBPS / SBI Bank PO, RRB and Other Bank Exam Aspirants?

Almost all exams including IBPS PO, IBPS RRB, SBI PO evaluate students on their knowledge of Banking General Knowledge and Current Affairs. This section is not only high scoring but also has high cut-offs. To ensure that you do well in this section, you need to ensure that you are regularly in touch with the latest news in the banking world and the economy.

Also Read: Economic Survey 2018 Part 1

Economic Survey 2018 - Summary

  • 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. The Survey also cautioned the government to remain vigilant for possible sharp correction in elevated stock prices, provoking a “sudden stall” in capital flows.
  • Setting the reform agenda for next year, the Survey said the government needs to work towards stabilizing the GST, completing TBS (twin balance sheet) actions, privatizing Air India, and staving off threats to macro-economic stability.
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Economic Survey 2018 - Fine Print

  • Economic Survey sees FY19 GDP growing 7-7.5% vs 6.75% in FY18. The forecast comes after the government this month lowered its GDP growth forecast for the year ending March 2018 to 6.5 percent, the weakest pace in four years.
  • Economic Survey sees average crude oil prices rising 12 per cent in FY19.
  • Employment, education & agriculture to be the focus areas in medium term, says Economic Survey. Over the medium term, 3 areas of policy focus stand out- Employment: finding good jobs for the young and burgeoning workforce, especially for women: Economic Survey.
  • Due to higher expected increase in imports, net exports of goods and services are slated to decline in 2017-18: Economic Survey
  • Concerns have been expressed about growing protectionist tendencies in some countries, but it remains to be seen as to how the situation unfolds: Economic Survey
  • 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: Economic Survey
  • Average inflation dips to 6-yr low of 3.3% in 2017-18: Economic Survey
  • Next year agenda- Stabilizing the GST, completing the TBS actions, privatizing Air India, and staving off threats to macro-economic stability: Economic Survey
  • Post-demonetization and GST increase in new tax filers (over and above natural increase) of about 1.8 million and some boost to individual income tax collections.
  • Economic Survey focuses on the need to address the issues of pendency, delays and backlogs in the appellate and judicial arenas towards Ease of Doing Business.
  • India jumped 30 places to break into the top 100 for the first time in the World Bank‘s Ease of Doing Business ranking, but it continues to lag on the indicator on enforcing contracts, marginally improving its position from 172 to 164 in the latest report: Economic Survey
  • Textile package boosted exports of key man-made ready-made garments by 16%.
  • During the first eight months of the current year 2017-18, the Gross Tax Collections are reasonably on track: Economic Survey
  • States‘ share in taxes grew by 25.2 per cent during April-November 2017, much higher than the growth in net tax revenue (to Centre) at 12.6 per cent and of gross tax revenue at 16.5 per cent. There has been a fifty percent increase in the number of indirect taxpayers: Economic Survey
  • Centre has kept pace with the previous year and is expected to meet targets, with a growth of 13.7 per cent while indirect taxes grew by 18.3 per cent during April-November 2017: Economic Survey
  • FDI inflow grew by 8% i.e. $60.08 billion in 2016-17 in comparison to $55.56 billion of the previous year.
  • As in September, 2017, total length of NHs/Express Ways in India was 1,15,530 km which accounted for 2.06% of the total road length.
  • During 2017-18 Railways carried 558.10 million tonne of revenue earning freight traffic: Economic Survey
  • Urban population is projected to grow to about 600 million by 2031.
  • Non Food Credit grew at 8.85% Y-o-Y in November 2017 as compared to 4.75% in November 2016.
  • The survey acknowledges that govt‘s Beti Bachao, Beti Padhao and Sukanya Samridhi Yojana schemes, and mandatory maternity leave rules are all steps in the right direction.
  • There is a need to innovate custom service or a rental model by institutionalization for high cost farm machinery: Economic Survey
  • Rs 20,339 crore has been approved by the government in 2017-18 to meet various obligations for interest subvention to farmers.
  • In 2017-18, domestic airlines carried 57.5 million passengers, showing a growth rate of 16% over the corresponding previous year period.
  • Installed power generation capacity has reached 3,30,860.6 MW as on November 30th, 2017 and electrification in 15,183 villages has been completed.
  • Measures to ensure mainstreaming of women in agriculture includes initiating women centric activities, focusing on women self-help group (SHG) to connect them to micro-credit. To ensure mainstreaming of women in agriculture, 30% of budget to be allocated for women beneficiaries
  • Government has been undertaking market reforms to ensure that farmers get better remunerative prices: Economic Survey
  • FDI equity inflows to the services sector grew by 15.0 percent during 2017-18 (April-October): Economic Survey
  • 5 sectors also including services activities and covering 100 areas of FDI policy have undergone reforms: Economic Survey
  • While the growth of Service Sector as a whole is expected to be at 8.3 per cent in 2017-18, the growth in Services exports was 16.2 per cent in H1 of 2017-18: Economic Survey
  • Services sector continued to be the key driver of India‘s economic growth contributing almost 72.5 per cent of GVA growth in 2017-18: Economic Survey
  • In terms of services GSVA growth, Bihar is at the top and Uttar Pradesh at the bottom with 14.5 per cent and 7.0 per cent growth respectively in 2016-17: Economic Survey
  • Tourism sector has been performing well with Foreign Tourist Arrivals growing by 9.7 per cent to 8.8 million and Foreign Exchange Earnings at 8.8 per cent to $ 22.9 billion in 2016: Economic Survey
  • India needs $4.5 trillion investment in infra by 2040.
  • There were 9.8 million unique GST registrants, slightly more than the total Indirect Tax registrants under the old system: Economic Survey
  • Survey shows wide variation in terms of share and growth of Gross State Value Added. Delhi and Chandigarh are at the top with over 80% share, while Sikkim is at the bottom with 31.7 per cent share.
  • Real Estate sector has begun to show signs of improvement with the total FDI of US$ 257 million in H1 2017, more than double the total FDI in 2016 full year: Economic Survey
  • Foreign exchange reserves grew by 14.1% on a year-on-year basis from end of Dec 2016 to end of Dec 2017.
  • Against the emerging macroeconomic concerns, policy vigilance will be necessary in the coming year, especially if high international oil prices persist or elevated stock prices correct sharply, provoking a sudden stall in capital flows: Economic Survey
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Read 414 times Last modified on Monday, 16 April 2018 14:40
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