Arvind Subramanian on Economic Survey 2018: the key takeaways

On Monday, the Annual Financial Survey was presented in the Parliament. The Economic Survey has an endless supply of the new information to feature 10 new monetary realities. Here are some of the highlights:

  1. Direct and Indirect taxes registered bound to largely increase.
  2. Formal non-agricultural payroll much greater than believed
  3. States’ thriving is emphatically associated with their global and between State exchange
  4. India’s firm export structure is egalitarian
  5. Exports of readymade garments made a boost because of clothing incentive package.
  6. Preference of sons in the society.
  7. Substantial avoidable litigation in tax arena which government action could reduce
  8. To re-touch off development, raising venture is more essential than raising sparing
  9. Direct tax collections by States and local governments are significantly lower than those of their counterparts in other federal countries
  10. Extreme weather adversely impacts agricultural yields

Arvind Subramanian, the Chief Economic Advisor, made a parlance at New Delhi. Here are some of the key points to take away.

He lauded 2 major achievements of India, namely, the launch of GST which was liable to challenges, and the twin balance sheet challenges. For the first time in 14 years, India got the Sovereign Rating upgrades.

He reiterated that India’s interest rates have gone up significantly. He added that there is a need to see why the Indian economy de-coupled from the rest of the economy over 3-4 quarters.

He pointed out that, The growth projection of 6.75% is higher than the CSO assessment and added we need to enhance the export growth. He mentioned the possibility of private investment gaining momentum.

He said,”My own view is that the govt. doesn’t have to do anything new or radical. They should finish what they started out. They should stabilize the GST. Finish privatizing Air India. Head off macroeconomic pressures and possibility of a sudden stall from rising oil prices and sharp correction is stock prices.”