;
Home / Knowledge / News / Textiles / Optimism on reforms in Indian economy: Economic Survey
Optimism on reforms in Indian economy: Economic Survey
11
Aug '17
There is a rekindled optimism on structural reforms in the Indian economy, says Economic Survey 2016-17 Volume 2 tabled in Parliament today. Various factors such as launch of the GST; positive impacts of demonetisation; decision in principle to privatise Air India; and further rationalisation of energy subsidies contribute to this optimism.

The document adds that a growing confidence that macro-economic stability has become entrenched is evident because of a series of government and RBI actions and also because structural changes in the oil market have reduced the risk of sustained price increases.

Examining if India is undergoing a structural shift in the inflationary process toward low inflation, the Survey notes that the oil market is very different today than a few years ago in a way that imparts a downward bias to oil prices, or at least has capped the upside risks to oil prices. Also Farm loan waivers could reduce aggregate demand by as much as 0.7 per cent of GDP, imparting a significant deflationary shock to an economy. 

As regards Outlook for Growth 2017-18, Survey (Volume I) had forecast a range for real GDP growth of 6.75 per cent to 7.5 per cent for FY 2018. For Outlook for Prices & Inflation 2017-18, the Survey notes the outlook for inflation in the near-term will be determined by a number of proximate factors, including the outlook for capital flows and exchange rate which in turn will be influenced by the outlook and policy in advanced economies, especially the US; the recent nominal exchange rate appreciation; the monsoon; the introduction of the GST; the 7th Pay Commission awards; likely farm loan waivers; and the output gap.

The document says that the fact that current inflation is running well below the 4 per cent target, suggests that inflation by March 2018 is likely to be below the RBI’s medium term target of 4 percent.

As regards Review of Economic Developments 2016-17, the Survey notes that real economy grew by 7.1 per cent in 2016-17 compared with 8 per cent the previous year. This performance was higher than the range predicted in the Economic Survey (Volume I) in February.

The current account deficit narrowed in 2016-17 to 0.7 per cent of GDP, down from 1.1 per cent of GDP the previous year, led by the sharp contraction in trade deficit which more than outweighed the decline in net invisibles. Export growth turned positive after a gap of two years and imports contracted marginally, so that India’s trade deficit narrowed to 5.0 per cent of GDP in FY 2017 as compared to 6.2 per cent (US$ 130.1 billion) in the previous year. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Government notifies 207 HSN Codes as technical textiles

Textiles | On 19th Jan 2019

Government notifies 207 HSN Codes as technical textiles

The government of India has notified 207 HSN Codes as technical...

Two US senators introduce Cambodian Trade Act of 2019 bill

Apparel/Garments | On 19th Jan 2019

Two US senators introduce Cambodian Trade Act of 2019 bill

Two US senators recently introduced the Cambodian Trade Act of 2019...

Rwanda to open silk factory in Kigali in Feb

Textiles | On 19th Jan 2019

Rwanda to open silk factory in Kigali in Feb

Rwanda will open a new silk factory in February at the Kigali Special ...

Interviews View All

Sachin Sharma, Gem Enviro Management Pvt Ltd

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Smarth Bansal, Colorjet India Limited

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Riddhi Jain,

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Gagan Gulati,

Gagan Gulati

PG Silk Mills Private Limited had a humble start with a hand-dyeing unit....

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


January 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search