Economic Survey 2018: Industry guarded, hopes infra boost will spur growth

Industry bodies, in their reaction to Economic Survey, said the Centre will have to keep a close vigil on inflation in the wake of burgeoning fuel prices. However, they observed that the Survey provides new ideas for building a positive momentum for growth in the coming year and for faster growth thereafter.

Infrastructure and Logistics Federation of India president Sushil Jiwarajka told DNA that the picture painted in the Economic Survey is one of cautious optimism. "There are several pointers towards rebound in the economy led by exports and private sector investment, but there will continue to be headwinds from global and local sources. Rising oil prices, slow growth in employment and agricultural distress can prove to be spoilers,'' he noted.

FICCI secretary general Dr Sanjaya Baru said it is a professional assessment of both positives and challenges on the economic front. "India has to remain focused ensuring stable and sustained growth, ever prepared to deal with new challenges. Reviving private investment, agricultural productivity, industry competitiveness and exports remain policy priorities,'' he viewed.

CII director general Chandrajit Banerjee said the very encouraging big data analysis in the Economic Survey points to a healthy improvement in tax coverage and collection on the direct and indirect side. This can be a game-changer as this continues to increase in the coming years.

National Real Estate Development Council president Niranjan Hiranandani said the Centre's push for infrastructure development, especially in road, railways and ports, will help spur the growth. "India will be the fastest growing country in the world, though China is working hard to bring back growth," he added.

Assocham president Sandeep Jajodia observed that Survey has brought to fore the issue of bad assets of the PSU banks. While the insolvency resolution mechanism has begun in the right earnest, a big vigil needs to be kept and the banks must be given additional capital at the earliest. Those doing good job should be given incentives. Until the issue of NPA is fixed, the growth may elude us.

KPMG India's national head of tax Girish Vanvari said the projected growth of 7 to 7.5% for 2018-19 looks promising and puts India as the highest significant growth economy in the world next year. Further, the emphasis on the need for an investment led inclusive growth, timely dispute resolution (including tax litigation) as the focus areas, the Survey hits the right note.

"The findings/suggestions, if implemented successfully, should lead to revival of the jobs, consumption cycle and improvement of the investor sentiment. It will be interesting to note how the government responds to the popular expectations of lower tax rates at individual and corporate tax levels especially in the light of an increasing tax base post GST and demonetisation,'' he opined.