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Economic Survey 2017: Health of economy

The trend of negative export growth was reversed somewhat during April-December (2016/17), with exports growing at 0.7 per cent to
$198.8 billion. Imports declined by 7.4 per cent to $ 275.4 billion in the same period.

twitter-logo Niti Kiran   New Delhi     Last Updated: February 1, 2017  | 09:17 IST
Economic Survey 2017: Health of economy

As per advance estimates, the growth rate of GDP at constant market prices for the year 2016/17 is estimated at 7.1 per cent, as against 7.6 per cent in 2015/16.

Fixed investment (gross fixed capital formation) to GDP ratio (at current prices) is estimated to be 26.6 per cent in 2016/17, vis-à-vis 29.3 per cent in 2015/16.

India's growth in the next fiscal is pegged at 6.75-7.5 per cent

Indirect taxes grew by 26.9 per cent during April-November 2016.

The strong growth in revenue expenditure during April-November 2016 was boosted mainly by a 23.2 per cent increase in salaries due to the implementation of the Seventh Pay Commission and a 39.5 per cent increase in the grants for creation of capital assets.

The CPI based core inflation has averaging around 5 per cent in the current fiscal year.

The trend of negative export growth was reversed somewhat during April-December (2016/17), with exports growing at 0.7 per cent to
$198.8 billion. Imports declined by 7.4 per cent to $ 275.4 billion in the same period.

Trade deficit declined to $ 76.5 billion in April-December (2016/17) as compared to $100.1 billion in the corresponding period of the previous year.

The current account deficit (CAD) narrowed in the first half (H1) of 2016/17 to 0.3 per cent of GDP from 1.5 per cent in H1 of 2015/16 and 1.1 per cent in 2015/16 full year.

In H1 of 2016/17, India's foreign exchange reserves increased by US$ 15.5 billion on BoP basis.

At end-September 2016, India's external debt stock stood at $ 484.3 billion, recording a decline of $ 0.8 billion over the level at end-March 2016.

 The share of short-term debt in total external debt declined to 16.8 per cent at end-September 2016. Foreign exchange reserves provided a cover of 76.8 per cent to the total external debt stock.

Agriculture sector is estimated to grow at 4.1 per cent in 2016/17 as opposed to 1.2 per cent in 2015/16

Growth rate of the industrial sector is estimated to moderate to 5.2 per cent in 2016/17 from 7.4 per cent in 2015/16.During April-November 2016/17, a modest growth of 0.4 per cent has been observed in the Index of Industrial Production (IIP).

The eight core infrastructure supportive industries -- coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity -- registered a cumulative growth of 4.9 per cent during April-November 2016/17 as compared to 2.5 per cent during April-November 2015/16.

Service sector is estimated to grow at 8.9 per cent in 2016/17, almost the same as in 2015/16.

 

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