Highlights of Economic Survey 2018

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

• Tax collection is significantly lower in India in relation to state and local governments compared to their counterparts in Germany and Brazil                                                Related Articles                                                 

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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