Highlights of Economic Survey 2018

India is poised to be the fastest growing economy among the major countries. According to the survey, the second half of the current fiscal can register a growth rate of 6.75 percent.

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The Economy Survey 2018 estimates the GDP growth rate to the tune of 7-7.5 percent for 2018-19. This makes India the fastest growing economy among the major countries. According to the survey, the second half of the current fiscal can register a growth rate of 6.75 percent.

The major points covered in the survey are described below.

Direct and Indirect taxes have registered major hike

  • Indirect taxpayers have increased by 50 percent
  • Voluntary registration increased largely
  • Major producing states while shifting to the new system can be undermining their tax collection
  • This is because GST base distribution amongst them are linked closely with their economy size

Payroll of non-agricultural sector much bigger than though out to be

  • Payroll of the formal sector is 31 percent of the non-agricultural workforce
  • GST net formality has been found to be 53 percent

Positive correlation between the prosperity of the state and inter-state & international trade

  • States having robust international trade are found to be richer
  • The exporting state produces better correlation with prosperity

Investment is more important than savings to initiate growth

  • Saving’s growth cannot ignite GDP growth, whereas investment growth does

Lower tax collection by state governments compared to other federal nations

Agricultural produce is still dependent on climate

  • Climate impacts agricultural yields
  • Agricultural produce also depends on the Monsoon and amount of rainfall
  • Impact is twice in the un-irrigated areas compared to the irrigated zones

Egalitarian Firm Export Structure

  • Top one percent of the Indian firms generate 38 percent exports
  • In other countries top one percent produce significantly higher exports

Clothing incentive package hiked exports of readymade garments

  • ROSL (Rebate of State Levies) has boosted readymade garment exports by approximately 16 percent unlike other segments