Indian economy to grow over 7 percent: Economic Survey 2015-16

The economic forecast by the finance ministry notes that the country’s ‘long run’ potential growth is around 8-10 percent

GN Bureau | February 26, 2016


#Arun Jaitely   #Budget Session   #Economic Survey  
(Photo: PIB)
(Photo: PIB)

The Indian economy may grow in the range of 7 to 7.75 percent, according to economic survey 2015-16. The real gross domestic product (GDP) growth rate in the first half of the fiscal grew by 7.2 percent. This was also the growth rate in 2014-15.  A summary of the survey issued by the press information bureau states that the country’s macro-economy is stable, “founded on the government’s commitment to fiscal consolidation and low inflation”.

READ: Despite growth, formal sector job shrinks

It talks about 4 ‘R’s – recognition, recapitalisation, resolution, and reform – required to comprehensively resolve the twin balance sheet challenge of public sector banks (PSBs) and some corporate houses.

READ: External debt in safe limits, export slowdown to continue

The settlement of the Minimum Alternate Tax (MAT) imposed on foreign companies reflects the restoration of stability and predictability in tax decisions, the economic survey says. The survey highlights the opening of over 200 million bank accounts under Pradhan Mantri Jan-Dhan Yojana (PMJDY), direct benefit transfer programme and the use of JAM trinity (Jan-Dhan, Aadhaar and mobile) for other government programmes and subsidies.

READ: Hunger, starvation still persist: Economic survey

The economic forecast by the finance ministry notes that the country’s ‘long run’ potential growth is around 8-10 percent. Realising this potential, the survey says, requires a push on at least three fronts. “First, India has moved away from being reflexivity anti-markets and uncritically pro-state to being pro-entrepreneurship and skeptical about the state. But being pro-industry must evolve into being genuinely pro-competition. Similarly, skepticism about the state must translate into making it leaner. It emphasises that the key to creating a more captive environment will be to address the exit problem which affects the Indian economy,” the survey says.

READ: Addition of record power generation, focus on renewable energy development


Second, the survey calls for major investments in health and education of people to exploit India’s demographic dividend to optimal extent. Third, it says that India cannot afford to neglect its agriculture, the report says.

READ: Uneven distribution of subsidies, requires rectification of anomalies

 

Comments

 

Other News

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

Togadia, Sinha and anti-Modi prejudices masked by empty rhetoric

There is an uncanny similarity in the pathological opposition to prime minister Narendra Modi by two members of the right wing, Pravin Togadia and Yashwant Sinha. They come from a diverse social and political background; yet they share a common strand that shows an unmitigated hatred towards

“We are becoming American digital colonies”

Data is the new oil; and it needs to be protected. In an interaction with Governance Now, Lionel Baraban, CEO of Famoco, talks about how the French tech firm is developing secure business devices to safeguard data against going to other countries. What are the major roles o

Goa Shipyard and MTU, Germany to manufacture MTU engines in India

Goa Shipyard Ltd (GSL) and MTU, Germany have agreed to cooperate in the  local manufacturing of technologically-advanced MTU series 8000 engines in India. Under the agreement, which was signed at India’s leading defence trade show Defexpo-18, the companies will manufacture the 16-

ONGC employees bag 13 medals at the Gold Coast CWG

ONGC sportspersons outshone other participants in their respective categories in the recently concluded Commonwealth Games in Gold Coast, Australia. ONGCians bagged 13 medals including 5 Gold, 3 Silver and 5 Bronze, contributing to the 66 medal tally of Team India. ONGCians Ragala Venkat Rah

BHEL bags renovation and modernisation order

Bharat Heavy Electricals Limited (BHEL) has bagged an order for the renovation and modernisation (R&M) of electrostatic precipitators (ESP) at Ramagundam super thermal power station. The Rs 137 crore-turnkey-order envisages carrying out R&M of ESPs of three units of 200 MW each at Ra

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter