Economy on Track to Maintain High growth
03, Jan 2019
Prelims level : Economy - Report Mains level : Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
- The Indian economy is projected to be the fastest-growing major economy in the current year and upcoming fiscal 2019-20, the Finance Ministry said in its year-end review of 2018.
Explained- Highlights of Report:
- The average growth of the economy between 2014-15 and 2017-18 was 3%, the fastest among major economies in the world, the Ministry said in its Year End Review 2018. Indian economy is projected to be the fastest-growing major economy in 2018-19 and 2019-20 [International Monetary Fund October 2018 database].
- This is borne [out] by GDP growth of 7.6% in the first half of 2018-19
- The average growth of the Indian economy between 2014-15 and 2017-18 was 7.3 per cent, fastest among the major economies in the world, the ministry said in Year End Review 2018. According to a recent World Bank report, India has improved its ranking in the Ease of Doing Business to 77th in 2018, this shows the improvement in the investment friendly climate. Highlighting various initiatives taken to improve investor confidence and boost growth, it said there were measures to spur manufacturing, comprehensive reforms in foreign direct investment policy, special package for the textile industry, push to infrastructure development by giving infrastructure status to affordable housing and focus on coastal connectivity. The direct tax-to-GDP ratio of 5.98% achieved during 2017-18 fiscal is the best in the last 10 years, the Ministry added.
- It further said there was a growth of over 80% in the number of tax returns filed in the last four financial years from 3.79 crore in 2013-14 to 85 crore in 2017-18.
- Consumer Price Index-based headline inflation averaged3 per cent during the period which is the lowest in the last six financial years.