OECD launched Economic Survey of India 2017
The survey observed that reaffirmation of fiscal rules and the implementation of inflation targeting have improved predictability of macroeconomic policy and policy outcomes.
The Organisation for Economic Co-operation and Development (OECD) on 28 February 2017 launched the Economic Survey of India 2017 in New Delhi.
The survey was jointly launched by the OECD Secretary-General Angel Gurria and Shaktikanta Das, Secretary, Department of Economic Affairs, Ministry of Finance.
Highlights of Economic Survey of India 2017
• Economic growth of around 7.5 per cent makes India the fastest-growing G20 economy.
• The acceleration of structural reforms, the move towards a rule-based policy framework and low commodity prices have provided a strong growth impetus.
• Investment is still held back by the relatively high corporate income tax rates and a slow land acquisition process.
• The implementation of a goods and services tax (GST), to replace a myriad of consumption taxes, could be a game-changer over the medium-run.
• The GST regime will help make India a common market and promote investment, productivity and competitiveness.
• Raise more revenue, especially from property and personal income taxes.
• Despite fiscal consolidation at the central government level and strong economic growth, the government debt to GDP ratio has increased.
• Increase public spending on physical and social infrastructure and gradually extend the subsidy reform to other products, including fertilisers and food.
• Job creation in the organised sector has been sluggish. Female participation is low and many young people are out of work and not in education or training.
• Produce timely data on employment to help design better policies.
• Poverty in rural areas is high, particularly among marginal farmers and landless labourers.
• Enable reforms in land ownership laws, improve the land registry and step up the digitisation of land records.
• Improve infrastructure to provide non-farm activities greater push both in rural and urban areas.
• Continue efforts to improve access to core public services for all.
• Urban population will increase fast. Urban citizens suffer from poor urban infrastructure, transport congestion and air pollution.