Ahead of the Budget session of Parliament beginning on January 29, representatives of the government and the opposition met in New Delhi to discuss the issues and proposed legislation which would come up. During recent interviews with a few news channels, Prime Minister Narendra Modi had indicated that the Budget may not contain freebies and sops.
The Economic Survey also pointed that of the total turnover of the new tax filers, interestingly, business to consumer (B2C) transactions only accounted 17 per cent, while the bulk of the transactions were business-to-business (B2B) and exports, which accounted for 34 per cent and 30 per cent, respectively.
Laying special emphasis on gender development, the Survey cautioned that on several indicators, notably employment, use of reversible contraception, and son preference, India has some distance to traverse despite the country's economic progress.
India's government will be trying to woo back rural voters and small businesses when it announces the 2018/19 budget on Thursday and pick up economic momentum as it heads into a season of elections, officials said.
"We were looking at a GVA (gross value added) growth of around 7-7.1 percent which means a GDP growth of roughly around 7.3 percent".
Highlighting the main points of the Survey, he said the BJP-led government has admitted that it has failed to address the challenges in education, employment, and agriculture.
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Giving some facts, the survey said there is a high level of pendency across six tribunals, estimated at about 1.8 lakh cases.
The Economic Survey 2018 presented in Parliament on Monday throws some light on that front.
Economic Survey is likely to estimate FY18 growth at 6.7 percent.
Together, the claims for indirect and direct tax stuck in litigation (Appellate Tribunal and upwards) by the quarter ending March, 2017 amounted to almost 7.58 lakh crores, over 4.7 percent of GDP. That might hot, however, translate into higher GDP growth. Fuelled by stronger private investment and exports, the recovery forecast for India's growth rate comes after the country posted its slowest growth in three years in 2017/18.
"Although the Economic Survey claims that the growth rate for 2017-18 will be 6.75 per cent (implying a second half growth rate of 7.5 per cent), it offers little evidence in support of this claim".
So, how can India reverse this slowdown and regain the 8-10% growth? "This year a series of very important steps are being taken", Arvind Subramanian, Chief Economic Adviser said. The consumer demand is likely to be aided by low real estate says economic survey.
The Economic Survey points out that India can be rated as among the best performing economies in the world as the average growth during last three years is around 4 percentage points higher than global growth and almost 3 percentage points higher than that of emerging market and developing economies.