Economic Survey 2015-16: Key highlights
The Current Account Deficit (CAD) has shown a decline and foreign exchange reserves have increased to US$ 351.5 billion in early February 2016. Direct taxes have grown by 10.7% in the first 9 months of 2015-16; indirect taxes have also risen.
Union Finance Minister Arun Jaitley tabled the Economic Survey 2015-16 in the Parliament on Friday.
Here are the key highlights of the survey:
1. The Economic Survey expects 7-7.75% GDP growth rate in 2016-17.
2. The Survey says Indian economy will continue to “weather global sluggishness with resilience”.
3. It predicts that retail inflation is likely to be 4.5-5% in 2016-17.
4. The Current Account Deficit (CAD) has shown a decline and foreign exchange reserves have increased to US$ 351.5 billion in early February 2016.
5. Direct taxes have grown by 10.7% in the first 9 months of 2015-16; indirect taxes have also risen.
6. According to the Survey, the aggregate capital expenditure by the Centre and state governments rose by 0.6% in 2015-16 (Centre – 54%; states – 46%).
7. The Survey draws attention to the twin balance sheet problem that stands in the way of India’s economy. The short term challenge arose due to weak financial positions of Public Sector Banks (PSBs) and some corporate houses.
8. The Survey suggests medium term fiscal frame work.
9. Overall exports saw a decline of about 18% in the first three quarters.
10. As per the Survey, India ranks first in milk production with its contribution of 18.5% towards the world’s total milk production. India’s milk production grew by 6.26% during 2014-15.
11. The Economic Survey says capacity enhancements have reduced the peak electricity deficit to its lowest ever level of 2.4%.
12. The Survey finds neo-natal mortality as a prime indicator of in-utero nutrition. “Out of all infants to die in India, 70% die in the first month. A leading cause of this is low birth weight,” it says.
13. It suggests improvement in surface irrigation system from about 35-40% to around 60%. The Survey says groundwater irrigation system can be improved from about 65-70% to 75%.
14. The Survey finds horticulture output contributed more than 33% in agriculture.
15. Services sector remains the key driver of economic growth with its contribution of 66.1% in 2015-16.
16. India’s FDI grew by 22% to stand at US$ 34 billion in 2014 compared to 2013.
17. India’s FDI inflows to the Services Sector grew by 70.4% to US$ 16.4 billion i 2014-15.
18. The Survey says making India the 8th largest services exporter in the world, our services export saw a growth from US$ 16.8 billion in 2001 to US $ 155.6 billion in 2014. This constituted 7.5% of the GDP.
19. India had low FTAs and FEEs in 2015. The Survey says “tourism growth which was 10.2% in terms of foreign Tourist Arrival (FTA) and 9.7% in terms of foreign exchange Earnings(FEE) in 2014 decelerated to 4.5% in terms of FTAs and fell by 2.8% in terms of FEEs in 2015.”
20. Domestic tourism grew by 12.9% in 2014.
21. The Economic Survey finds year-on-year growth in gross bank credit outstanding has been about 10% in the current financial year.
22. The Economic Survey 2015-16 states that 7% of the GDP was spent on social services including Education, Health, Social Security, Nutrition, Welfare of SC/ST/OBC etc. during 2014-15 (RE), compared to 6.5% during 2013-14.
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