Economic Survey 2017 lowers FY17 GDP at 6.5 pc

Mumbai: Finance Minister Arun Jaitley on Tuesday presented the Economic Survey 2017 in Parliament. A team led by chief economic adviser Arvind Subramanian prepared the lengthy document that recommends government on various macro- and micro- economic indicators.

The Survey has lowered India's GDP growth at 6.5 per cent for the current fiscal 2016-17. It has further pegged GDP will rebound in the range of 6.75 per cent to 7.5 per cent for the next fiscal 2017-18.

The GDP growth was 7.6 per cent last fiscal 2015-16. The Survey pointed it out that demonetisation exposed GDP growth to certain risks.

Besides, the Survey says fiscal gains from Goods and Services Tax will take time to realise. It sees fiscal windfall from Pradhan Mantri Garib Kaayan Yojana, low oil prices. Growth rate of industrial sector estimated to moderate to 5.2 per cent in 2016-17 from 7.4 per cent last fiscal.

The Survey predicts GDP growth rate at constant market prices for 2016-17 fiscal year at 7.1 per cent. India's service sector estimated to grow at 8.9 per cent in 2.16-17 fiscal. Labour migration in India is increasing faster than earlier, the Survey said.