Indian economy growing by 7 to 7.5%, says Economic Survey

The Economic Survey 2015-16 said on Friday that the Indian economy was expected to grow by 7-7.75 per cent this year despite external challenges. For 2016-17 also, the forecast is pegged at 7-7.5 per cent, the survey said. However, the survey cautions that if the world economy remained weak, India's growth could face considerable difficulties. The Survey, tabled by Minister for Finance Arun Jaitley in the Lok Sabha, said increase in wages and benefits recommended by the Seventh Pay Commission would have little impact on the economy. The survey said the fiscal deficit was 3.9%. It was possible to overcome the situation. While the Supreme Court is after the Reserve bank of India and nationalised banks on their whopping non-performing assets and writing off the same in most cases, the Finance Minister assured the banks that the government would be the first to come to their rescue. Although in what context Jaitley had reassured the banks was not known, he must make it clear in his budget presentation whether he was referring to the NPAs. The Finance Minister tried to sell the idea that India would abound in foreign direct investment in the coming year.