India&’s GDP growth in 2016-17 will be in the range of 7 to 7.75 per cent, Union Finance Minister Arun Jaitley said on Friday as he presented the Economic Survey in Parliament.
Quoting the Central Statistics Office, the survey projected a 7.6 per cent economic growth rate for the current fiscal after reviewing all major developments. The figure is up from 7.2 percent in 2014-15.
Authored by Chief Economic Advisor in the Finance Ministry Arvind Subramanian, the survey stated: "India’s long run potential GDP growth is substantial, about 8-10 percent."
It further said that Increase in wages recommended by the 7th Pay Commission are not likely to destabilise prices and will have little impact on inflation.
Noting that the upcoming budget and economic policy will have to contend with an unusually challenging and weak external environment, the survey said: "Amidst a gloomy international economic landscape, India stands as a haven of stability and will be the fastest growing major economy."
On the inflation front, the survey projected the consumer price-indexed (CPI), or retail, inflation in the fiscal would settle in the 4.5 to 5 percent range.
India’s trade deficit in April to January period of the fiscal declined to $106.8 billion from $119.6 billion in the corresponding period of 2014-15.
The country’s current account deficit (CAD) during April-September period of the fiscal was at 1.4 percent of the GDP.
The government will meet its fiscal deficit target of 3.9 per cent of the GDP, it said further.
The pre-Budget Economic Survey summarizes the economic performance of the country in the last fiscal year and indicates how the government can plan the following year. It also includes projections for growth.
Union Finance Minister Arun Jaitley will present the Union Budget on February 29.