Economic Survey: India a haven of stability in a gloomy global landscape

New Delhi: The Economic Survey 2015-16 said on Friday India stands out as a “haven of stability” and an “outpost of opportunity” amid the global turmoil and projected growth at between seven and 7.75 per cent in 2016-17.

However, it also warned of the need for a “recalibration of expectations” due to the tough external situation and said it may take India a few years longer to reach its full potential of 8-10 per cent amid slow global growth.

Tabled in Parliament on Friday, three days before finance minister Arun Jaitley presents his third Budget Monday, the Survey urged the government to press ahead with reforms, cut subsidies and introduce GST, while pushing for a review of mid-term fiscal targets to create space for additional expenditure.

The Survey said India’s macro-economy was stable, founded on the government’s commitment to fiscal consolidation and low inflation. “Its growth is among the highest in the world, helped by a reorientation of government spending toward needed public infrastructure. It is likely to be the fastest growing major economy in the world in 2016.,” the Survey noted.