India's Economic Survey Sees Recovery, But With Reforms

Rajan, a former chief economist of the International Monetary Fund (IMF), said a wide gap in upper and lower projections of the GDP growth was mainly due to uncertainty prevailing in the economy.

"Given the uncertainty, we are giving wider band," he said.

The survey also pushed for fast action on the ground after the opening up of the retail trade industry to overseas companies and said this will not just pave the way for flow of investment in new technology, but also for marketing of farm produce in India.

"Fast agricultural growth remains vital for jobs, incomes and food security."

In the survey, a special chapter has been added focusing on jobs that says the future holds promise for India if it seizes the demographic dividend, with nearly half of the additions to the labour force till 2030 expected in the 30-49 age group.

"Because good jobs are both the pathway to growth as well as the best form of inclusion, India has to think of ways of enabling their creation," says the survey, adding new jobs are currently being added mainly in informal and low productivity sectors.

Coming a day ahead of the general budget, the survey also calls for widening the tax base and prioritisation of expenditure, holding them as the key ingredients to a credible medium-term fiscal consolidation plan.

"The policy recommendations of the Survey focus largely on stimulating investments and reducing supply bottlenecks particularly in the agricultural sector," the Confederation of Indian Industry said in a statement.

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