India’s economic growth has been pegged at 6.5 per cent for the current fiscal, down from 7.6 per cent recorded in the last financial year, but is expected to rebound in the range of 6.75-7.5 per cent in 2017-18.
The Economic Survey for 2016-17, tabled in the Parliament by Finance Minister Arun Jaitley today, underlined the need for more reforms.
The Survey’s GDP growth figure for the current fiscal is lower than 7.1 per cent the Central Statistics Office had forecast earlier this month.
The Survey lists some of the challenges that might impede India s progress. These include ambivalence about property rights and the private sector, deficiencies in state capacity, especially in delivering essential services and inefficient redistribution.
On such an important day, BSE Sensex slipped into the negative zone as cautious investors scaled down their positions and touched a low of 27,633.55 ahead of the release of the Economic Survey.
However, buying activity came back soon after the Survey was tabled in Parliament, which helped the Sensex recover, but was still down 67.51 points, or 0.24 per cent, at 27,782.05 at 1300 hours.
Major gainers that pulled the key indices from early lows were Bajaj Auto, ONGC, PowerGrid, ITC, Bharti Airtel, HDFC, Tata Steel, HUL, RIL and ICICI Bank.
The NSE index Nifty, which hit a low of 8,555.15 in early morning trade, made up some ground to 8,589.40, still lower by 43.35 points, or 0.50 per cent.
The Survey said India’s economic growth is expected rebound to 6.75-7.5 per cent in 2017-18 while the GDP growth for the current fiscal has been pegged at 6.5 per cent, down from the earlier 7.6 per cent.