OECD launched Economic Survey of India 2017

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.