New Delhi, Jan 29: Chief economic advisor (CEA) Arvind Subramanian on Monday warned about growing global risks like rising oil prices and the possibility of sudden capital outflows, which could result in Petrol and Diesel prices hike.
“This year oil prices went up that affected consumption and government finances and also held back real economic activity” he asserted.
“Major achievements this year has gone are the launch of Goods & Services Tax, decisive tackling of Twin Balance Sheet challenge and validation of achievements and recognition of medium-term prospects”.
“Policy agenda for the year ahead-support agriculture, stabalise GST, complete TBS actions with reforms, privatise Air-India and head-off macroeconomic pressures and possibility of a ‘sudden stall’ from rising oil prices and sharp correction in stock prices”.
Addressing a presser, he informed that there has been 50% surge in indirect taxpayers after the implementation of GST.
“From the very 1st survey onwards we’ve spoken about the twin balance sheet challenges, undercapitalised banks which held back growth for a very long time. This year a series of very important steps are being taken”, the Chief economic advisor said.
He further added, “We think of the twin balance sheet challenges having 4 ‘R’s – Recognition, Resolution, Recapitalisation and Reforms. I think now we are well ahead on all of them”.
The Economic Survey which was tabled by Finance Minister Arun Jaitley earlier in a day, projected India’s GDP to grow at 7-7.5 percent during the financial year 2017-18.