Economic survey says rupee performed better that most emerging market economy

Speed Post News Network

New Delhi : The Indian economy has sustained a macro-economic environment of relatively lower inflation, fiscal discipline and moderate current account deficit coupled with broadly stable rupee-dollar exchange rate.  The Economic Survey 2016-17 presented in the Parliament on January 31, 2017, by Union Finance Minister Arun Jaitley states that such a sustenance is despite continuing global sluggishness.

It says as per the advance estimates released by the Central Statistics Office, the growth rate of GDP at constant market prices for the year 2016-17 is placed at 7.1 % against 7.6 % in 2015-16.This estimate is based mainly on information for the first seven to eight months of the financial year. Government final consumption expenditure is the major driver of GDP growth in the current  year.Fixed investment (gross fixed capital formation) to GDP ratio (at current prices) is estimated to be 26.6 % in 2016-17 vis-à-vis 29.3 % in 2015-16a , according to a PIB release.

For 2017-18, it is expected that the growth would return to normal as the new currency notes in required quantities come back into circulation and as follow-up actions to demonetisation are taken. On balance, there is a likelihood that Indian economy may recover back to 6 ¾ per cent to 7 ½ per cent in 2017-18.