Economy to grow at 7-7.5 pc in 2016-17, 7.6 pc in current yr


New Delhi, Feb 26 (PTI): Ahead of the Union Budget, the Economic Survey today termed external environment as challenging but projected a 7-7.5 per cent GDP growth rate in the next fiscal which could accelerate to eight per cent in a couple of years.

The Economic Survey for 2015-16, which was tabled in Parliament today, also made a case for carrying forward the reform process to achieve macro-economic stability.

Inspite of challenges and lower than projected GDP growth rate during 2015-16, "the fiscal deficit target of 3.9 per cent of GDP seems achievable."

After a 7.2 per cent economic growth in 2014-15, it said the expansion in economy will be 7.6 per cent in the current fiscal, the fastest in the world.

However, it cautioned that if the world economy remained weak, India's growth will face considerable headwinds.

On the domestic side, two factors can boost consumption, increased spending from higher wages and allowances of government workers if the 7th Pay Commission is implemented and return of normal monsoon.

At the same time, the Survey enumerated three downside risks - turmoil in global economy could worsen the outlook of exports, contrary to expectations oil price rise would increase the drag from consumption and the most serious risk is the combination of these two factors.

"One of the most critical short-term challenges confronting the Indian economy is the twin balance sheet problem - the impaired financial positions of the public sector banks and some corporate houses. The twin balance sheet challenge is the major impediment to private investment and a full-fledged economic recovery," the Survey said.

  

Top Stories

Comment on this article

  • Rakesh, Mumbai

    Fri, Feb 26 2016

    What a joke by the government

    DisAgree [5] Agree [9] Reply Report Abuse

  • j.anata, Mangaluru / Mumbai

    Fri, Feb 26 2016

    I am waiting for the day when Modi says- breathing is compulsory to stay alive and....Many will stop breathing just to oppose him!

    India rising, but these hate mongers speak ill of their own nation

    DisAgree [16] Agree [8] Reply Report Abuse

  • alfria, mumbai

    Fri, Feb 26 2016

    anata, Pls. explain in what way is India rising, except for fekugiri, goondagiri by police,rss,abvhp,bjp. communal/hate speech and for all the other wrong reasons India is rising. Would only wish India could rise for all the betterment of all.

    DisAgree [2] Agree [2] Reply Report Abuse

  • R Mallar, Kasaragod/ Dubai

    Fri, Feb 26 2016

    Alfria, you forgot to mention increasing hypocrisy, ultra left anti national agenda

    DisAgree Agree Reply Report Abuse

  • Simon, Abu Dhabi / Mangalore

    Fri, Feb 26 2016

    I doubt, since every institutions have been bought by this govt.

    DisAgree [3] Agree [11] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Fri, Feb 26 2016

    Every thing is at a STANDSTILL ...

    DisAgree [7] Agree [13] Reply Report Abuse

  • Sumit shanbhog, Manipal

    Fri, Feb 26 2016

    Given that oil prices are at rock bottom & economic meltdown in China and southeast Asian countries India should have made use of golden opportunity.
    But the economic policies of Modi govt have been proved counter productive. If it was MMS Indian economy would have achieved at least 10 pc GDP this year.

    DisAgree [10] Agree [17] Reply Report Abuse

  • sampath,

    Fri, Feb 26 2016

    Good going Modi...Now you will see more and more challenges from Opposition parties to de-rail the growth story.Be carefull and God will give full strength to overcome it.God Bless Jai ho..

    DisAgree [16] Agree [6] Reply Report Abuse


Leave a Comment

Title: Economy to grow at 7-7.5 pc in 2016-17, 7.6 pc in current yr



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.