Budget 2018: Know the major expectations and challenges

Finance Minister Arun Jaitley on Monday tabled the economic survey in Parliament which summarized the major economic reforms undertaken by the government in 2017-18. 

The survey pegged India's gross domestic product (GDP) growth for 2018-19 at 7-7.5 per cent

The Economic Survey report 2017-18 also said that private investment is poised to rebound in the fiscal year 2019 and employment, education and agriculture will remain the focus in the medium term.

The survey pointed out that India can be rated as among the best performing economies in the world as the GDP growth averaged 7.3 per cent from 2014-15 to 2017-18, the highest among the major economies of the world.

Here are the key takeaways from economic survey 2017-18:

GROWTH

#India's gross domestic product (GDP) growth for 2018-19 forecasted at 7-7.5 per cent

#GDP to expand by 6.75 percent in 2017-18, re-instating India as world's fastest growing major economy.

#Services growth for FY18 at 8.3 per cent, industry growth at 4.4 per cent, and agri growth of 2.1 per cent.

#Manufacturing growth to rise 8 per cent this year

#2017-18 farm sector growth seen at 2.1 per cent

# 1.8 million new taxpayers have been added post demonetisation and GST

# 50 per cent increase in the number of indirect taxpayers

Also Read: Entire Economic Survey 2017-18 Report 

BANKING

#Gross Non-performing advances (GNPA) ratio of scheduled commercial banks increased from 9.6% o 10.2% between March, 2017 and September, 2017

#An ecosystem for the new insolvency and bankruptcy process took shape in 2017-18. The IBC mechanism is being used actively to resolve the NPA problem of the banking sector.

STOCK MARKETS

# Cautions against increasing stock markets. Survey says that investors should be more vigilant as share prices are very high.

FISCAL DEFICIT

#Target for fiscal consolidation specially in a pre-election year can carry a high risk of credibility

#Current account deficit for 2017/18 expected to average 1.5-2 per cent of GDP

#Pause in general govt fiscal consolidation cannot be ruled out in 2017-18

#Suggests modest (fiscal) consolidation that signals a return to the path of gradual but steady deficit reductions

INFLATION, POLICY RATES

# High crude oil prices remain a key risk, to affect inflation

# Average CPI inflation seen at 3.7 per cent in 2017-18

OTHER HIGHLIGHTS

Swachh Bharat Mission is a great success. The number of persons defecating in open in rural areas, which were 55 crore in October, 2014, has declined to 25 crore in January.

#Economy accelerated in second half of current fiscal due to GST, bank recapitalisation, liberalisation of FDI and higher exports

#Gross Value Added (GVA) expected to grow by 6.1 per cent in 2017-18 as compared to 6.6 per cent in 2016-17

#Preliminary analysis of the Goods and Services Tax (GST) data reveals 50% increase in the number of indirect taxpayers

# India has performed better on 14 out of 17 key indicators.