Achieving the upper end of 6.75 percent - 7.5 percent real GDP growth predicted in February is difficult due to appreciation of rupee, farm loan waivers and transitionary challenges from implementing GST, according to the second volume of the Economic Survey conducted by the Ministry of Finance.
For the first time today, the government presented a second or a mid-year economic survey for the year 2017-18 highlighting the new factors that the economy faces since the last such exercise in February.
Finance Minister Arun Jaitley will present the second volume of the Economic Survey in the Rajya Sabha on Friday — the last day of the Monsoon session of the Parliament. The economic survey will be presented among a number of bills that are scheduled to be presented in the Rajya Sabha including The Companies (Amendment) Bill, The Indian Institutes of Management Bill, The Appropriation Bill, The Punjab Municipal Corporation Law (Extension to Chandigarh) Amendment Bill, The Central Goods and Services Tax (Extension to Jammu and Kashmir) Bill and The Integrated Goods and Services Tax (Extension to Jammu and Kashmir) Bill.
Other key highlights of of the Economic Survey include structural reform agenda which also involves implementing GST, privatisation of Air India and also addressing the twin balance sheet challenge which many banks are facing.
It said the government and the RBI have taken "prominent steps" to address the twin balance sheet challenge which has boosted market confidence in the short run. Also, the removal of checkposts and easing of transport constraints after Goods and Service Tax (GST) implementation can provide some short-term fillip to economic activity.
Also, The survey has also mentioned that the Fiscal deficit is expected to decline to 3.2% of GDP in FY2018 compared with 3.5%