New Delhi: Chief Economic Adviser Arvind Subramanian on Monday said that the policy agenda for the year ahead will be to support agriculture, stabilize GST, complete TBS actions with reforms, privatise Air-India and head-off macro economic pressures and possibility of a ‘sudden stall’ from rising oil prices and sharp correction in stock prices.
Talking about the Economic Survey 2018 which was tabled in Parliament today, the CEA said, “Government does not have to do anything radical. Just finishing what it has started already would be a very ambitious and fantastic agenda to complete.”
We think of the twin balance sheet challenges having 4 ‘R’s – Recognition, Resolution, Recapitalisation and Reforms. I think now we are well ahead on all of them Subramanian said.
“From the very 1st survey onwards we have spoken about the twin balance sheet challenges, under capitalised banks which held back growth for a very long time. This year a series of very important steps are being taken,” he added.
“Major achievements this year gone are the launch of Goods and Services Tax, decisive tackling of Twin Balance Sheet challenge and validation of achievements and recognition of medium term prospects, the CEA said.
Subramanian said that this year oil prices went up that affected consumption and government finances and also held back real economic activity.
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The Economic Survey today said the average retail inflation has declined to a six-year low of 3.3 percent in 2017-18, with the economy moving towards a more stable price regime.
The document further said the GDP growth has averaged 7.3 percent for the period from 2014-15 to 2017-18, which is the highest among the major economies of the world.
India is expected to regain the world’s fastest growing major economy tag as it is likely to clock 7-7.5 percent growth rate in 2018-19, up from 6.75 percent in the current fiscal, the Economic Survey said.