The Economic Survey expects fiscal deficit to decline to 3.2% of GDP in FY18 compared with 3.5% in FY17. The Survey anchored by chief economic adviser in the finance ministry Arvind Subramanian said 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. On demonetisation, the Survey said it increased demand for social insurance such as the rural job guarantee scheme, particularly in less developed states. However, the survey noted that sustaining the current growth trajectory will require action on more normal drivers of growth such as investment and exports and cleaning up of balance sheets to facilitate credit growth.

Source: Mint August 11, 2017 07:31 UTC