Economic Survey 2015-16

economic survey 2016-17

Question: According to the Economic Survey 2015-16 tabled in Parliament on 26 February 2016 what is the expected GDP Growth Rate for 2016-17?
(a) 7 % to 7.75 %
(b) 7% to 8%
(c) 8%
(d) 8 to 8.5%
Ans (a)
Related facts:

  • On 26 February 2016 Union Finance Minister Shri Arun Jaitley tabled the Economic Survey 2015-16 in Parliament.
  • Economic Survey 2015-16: Main Highlights
  • India’s GDP(at 2011-12 constant prices) is predicted to be in the range of 7.0 to 7.75 per cent during the 2016-17 financial year.
  • GDP at constant market prices is projected to increase to 7.6% in 2015-16 from 7.2% in 2014-15.
  • It is expected to touch the growth rates of 8 % or higher in the next two of years.
  • The growth rates in agriculture sector have been fluctuating at 1.5 per cent in 2012-13, 4.2 per cent in 2013-14, (-) 0.2 per cent in 2014-15 and a likely growth of 1.1 per cent in 2015-16.
  • For the year 2015-16 the advance estimate for growth rate of industry is 3 per cent.
  • Services continue to be key driver and expected to be 9.2% in 2015-16.
  • Gross Domestic Product (GVA) growth rate is estimated at 7.3 percent in year 2015-16 compared to 7.1 percent in 2014-15.
  • According to advance estimate of 2015-16 the per capita net national income at current prices is Rs 93 231, which is 6.2 percent higher than the previous year 2014-15.
  • According to advance estimate of 2015-16 the per capita net national income at constant prices is Rs 77 431, which is 6.2 percent higher than the previous year 2014-15.

Fiscal Deficit:

  • Central government’s gross fiscal deficit as a percentage of GDP was 4.5 percent in 2013-14, 4.0 per cent in 2014-15 (Provisional Actuals) and in 2015-16 (budget estimate) is 3.9 per cent.
  • Revenue Deficit:
  • The Central government’s revenue deficit as a percentage of GDP was 3.2 percent in 2013-14, 2.9 per cent in 2014-15 (Provisional Actuals) and in 2015-16 (budget estimate) is 2.8 percent.
  • Primary Deficit:
  • The central government’s primary deficit as a percentage of GDP is 1.1 percent in 2013-14, and 0.8 per cent in 2014-15 (provisional actual) and in 2015-16 (budget estimate) is 0.7 percent.
  • At current market prices the gross domestic product (GDP) as a percentage of gross domestic savings rate is 33 percent in year 2013-14 and is 33 percent in year 2014-15.
  • At current market prices the gross domestic product (GDP) as a percentage of gross capital formation rate is 34.7 percent in year 2013-14 and 34.2 percent in the year 2014-15.
  • India’s export growth (in terms of dollar value) was (-) 1.3 percent in 2014-15 and 7 per cent in 2013-14.
  • During April-January 2015-16, India’s exports declined year-on-year by 17.6 per cent to 217.7 billion US dollars and this decline was broad-based.
  • In 2014-15, India’s import growth rate (in terms of dollar value) was (-) 0.5 per cent and in 2013-14, the import growth rate is (-) 8.3 per cent.
  • In year 2015-16 (April-December, 2015-16) it is estimated at (-) 15.5 percent.
  • India’s foreign exchange reserves at 351.5 billion US dollars, as on 5 February 2016, mainly comprised foreign currency assets amounting to 328.4 billion US dollars, accounting for about 93.4 per cent of the total.
  • According to Economic Survey 2015-16 the Percentage Share of Horticulture Output in Agriculture is more than 33 Per Cent.
  • The total expenditure on Social Services including Education, Health, Social Security, Nutrition, Welfare of SC/ST/OBC etc. during 2014-15 (RE) was 7% of GDP while it was 6.5% during 2013-14.
  • Accordingly, the Free Trade Agreement (FTA) with the ASEAN Exports from India increased significantly by 33 percent and with 79 percent increase in imports the trade flow has benefited from both the sides.
  • According to the Economic Survey 2015-16 Services Sector remained the key driver of economic growth contributing almost 66.1 percent in 2015-16.
  • Accounting for 18.5 per cent of world production India recording a Growth of 6.26 % whereas World Milk Production Increases by 3.1 %.
  • Per capita availability of milk in India increased from 176 grams per day in 1990-91 to 322 grams per day by 2014-15.
  • India ranks first in milk production achieving an annual output of 146.3 million tonnes during 2014-15 as compared to 137.69 million tonnes during 2013-14.
  • According to Food and Agriculture Organization (FAO) the world milk production in 2014 reached 789 million tons compared to 765 million tonnes in 2013.
  • Trade deficit declines to 106.8 billion US dollars in April-January 2015-16 from 119.6 billion US dollars in corresponding period 2014-15.
  • Current Account Deficit (CAD) limits at 1.4 percent of Gross Domestic Product during April September, 2015-16.

Reference:
http://indiabudget.nic.in/es2015-16/echapter-vol1.pdf
http://indiabudget.nic.in/es2015-16/echapter-vol2.pdf