The survey added that the high growth rate can be expected because of the reforms taken forward, like deregulation of diesel prices, taxing energy products, replacing cooking gas subsidy by direct transfer, etc, by the new NDA government at the Centre led by Prime Minister Narendra Modi.
The Economic Survey tabled in the Lok Sabha on Friday took the changed growth computation method forward and said that growth rate of over 8% is expected in the coming year.
Citing the change in base year made by the Central Statistics Office (CSO), growth rate at market prices for 2015-16 is expected to be between 8.1-8.5%.
Going further, the Survey further said that double-digital economic growth trajectory is now a possibility. It said, "The Economic Survey 2014-15 presented by the Finance Minister Shri Arun Jaitley to the Parliament today indicates that a clear political mandate for reform and a benign external environment now is expected to propel India on to a double digit trajectory. It states that Indian economy appears to have now gone past the economic slowdown, persistent inflation, elevated fiscal deficit, slackening domestic demand, external account imbalances and oscillating value of the rupee."
The survey added that the high growth rate can be expected because of the reforms taken forward, like deregulation of diesel prices, taxing energy products, replacing cooking gas subsidy by direct transfer, etc, by the new NDA government at the Centre led by Prime Minister Narendra Modi.
Key areas:
Fiscal Deficit
The Survey has "urged" the government to aim at bringing down it's fiscal deficit down to 3% of GDP. The 14th Finance Commission advised the finance ministry to aim at fiscal deficit of 3.6% of GDP next year.
Subsidies
The Survey said that subsidies are not having the desired effect on living standards of the poor. It said, "It says that a close look at price subsidies, which are estimated to be about 3,78,000 crore rupees, about 4.24% of GDP, reveal that they may not be the government’s best weapon for fighting poverty. "
The Survey stated that price subsidies are often regressive and favour the rich more than the poor. However, it said, "that eliminating or phasing down subsidies is neither feasible nor desirable."
Domestic demand
The survey said that growth in India in 2014-15 was largely fueled by domestic demand. It said that growth in exports is projected to be only 0.9%.
Decline in savings
A major decline in household physical savings has caused a decline in gross domestic savings to 30.6% in 2013-14 from 31.8% in 2012-13.
Private investments
The Survey said that private sector investments must remain the primary engine for growth in the long run, public investment, especially in railways, will have to play an important role to revive growth. In the Indian Railways Budget tabled by Railways Minister Suresh Prabhu yesterday, the finance ministry has agreed to allocate Rs 40,000 crore for the railways out of its total over Rs 1 lakh crore expenditure for next fiscal.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}