India’s GDP growth to dip to 6.5%, but will rebound in 2017-18


India’s GDP growth will dip to 6.5 per cent in 2016-2017 from 7.6 per cent in the previous financial year, but rebound to between 6.75 per cent and 7.5 per cent in 2017-18, said the Economic Survey presented by Finance Minister Arun Jaitley on January 31.

The Budget session began with a customary speech by President Pranab Mukherjee to the joint session of parliament in which he highlighted the government’s commitment to financial inclusion and empowerment of the poor and downtrodden thorough a host of innovative financial schemes.

Finance Minister Arun Jaitley on Tuesday tabled the Economic Survey 2017 in Parliament. The presentation of the Survey kick started the Budget session, following President Pranab Mukherjee’s address to a joint session of Parliament. The annual Budget has been advanced, and will be presented on February one.

Pitching for reforms to “unleash economic dynamism and social justice,” the Economic Survey predicted that the agriculture sector will grow at 4.1 per cent in the current year up from 1.2 per cent in 2015-16. The 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.

The Survey underscored that Foreign Direct Investments (FDI) reforms have made India to become one of the world’s largest recipients of FDI. The survey reinforced the government’s narrative on demonetisation, saying it has short-term costs but holds the potential for long-term benefits.