NEW DELHI:Economic Survey has estimated economic growth between 8.1 and 8.5 per cent in year 2015-16. This survey was tabled in Lok Sabha on Friday. At the same time survey hopes India on track to achieve double-digit growth in future. Growth rate in 2014-15 is estimated at 7.5 per cent and survey expects in the coming year it is .6-1.1 percent more. On the other hand Stock Market is positively reacted on survey report. Sensex crossed 29000 point landmark.
The survey has listed four factors for the higher growth. Government has undertaken a number of reforms and is planning several more and their cumulative growth impact will be positive. A further impetus to growth will be provided by declining oil prices and increasing monetary easing facilitated by ongoing moderation in inflation.Effect of tax cuts, declining oil prices will add spending power to households and thereby boosting consumption and growth. Oil is also a significant in put in production and declining prices
14th Finance Commission recommendations will bring about greater fiscal federalism.The Survey says fiscal, revenue and primary deficits show a declining trend. Forex reserves are going up.There is political mandate for reform and benign external environment now. Industrial growth has picked up after decline in past years. It observes manufacturing and services sector equally important for growth of economy. Services sector clocks double digit growth. Economic Survey highlights the need for balance between ‘Make in India’ and ‘Skilling India’. It says public investment to be a key growth engine in short run for Railways, but not a substitute for private investment. Investments in Railways will transform Indian manufacturing industry with Make in India becoming a reality.
At the same time survey notices there is a need to improve productivity in the agricultural sector to ensure food security.