"The chances of India's growth rate in 2016-17 increasing significantly beyond 2015-16 levels are not very high, due to likelihood of persistence of global slowdown," it said.

"The implementation of the Pay Commission recommendations and the 'One Rank One Pay' scheme will put additional burden on expenditure," it added.

Moody's Investors Service said earlier this month that the country's fiscal position will remain weaker than other emerging economies in the near term even if fiscal consolidation continued on course.

"Even if the budgetary consolidation continues, India's fiscal metrics will remain weaker than rating peers in the near term, because of the relatively high levels of deficits and debts of India's state and central governments," Moody's said in a report.

"The importance of the upcoming budget lies in its message on the government's fiscal consolidation plans," the American agency said.

India Inc. has appreciated the candid posture of this year's Economic Survey and hoped that the recommendations made in it would be reflected in the national budget.

"The Economic Survey has highlighted that India's potential growth rate is in the range of 8-10 percent and achieving the same requires a push in three critical areas which are promoting entrepreneurship and reducing the role of the state, and higher investments in health and education," said Harshavardhan Neotia, president of the industry chamber Ficci.

"The Economic Survey has rightly highlighted the need for being prepared to face any spillover of major currency adjustments in China and other Asian economies," said Sunil Kanoria, president of the Associated Chambers of Commerce and Industry of India.

Read Also:

Budget 2016 May Address Retrospective Tax Concerns

Economy To Grow At 7-7.5 Pc In 2016-17, 7.6 Pc In Current Yr