The Economic Survey shows India's economy faces downside risks in the backdrop of a global slowdown and the government needs to take steps to boost rural demand and improve ease of doing business while initiating bold reforms like the GST, industry experts said today.
"Although the economy is on an upswing, it faces downside risks from a muted global economy, impacting exports and inflow of investments, leading to challenges in job creation.
"Clearly, the government has an unenviable task at hand to significantly accelerate growth in the economy by focusing on rural demand, de-stressing banks and increasing public spending without impacting the fiscal discipline.
"It is important that the rural sector in given importance as it generates maximum employment in agriculture and non-agriculture activity," Richard Rekhy CEO KPMG India said.
Economic Survey 2015-16, tabled in Parliament by Finance Minister Arun Jaitley, projected a growth rate of 7-7.75 per cent for the next fiscal compared with 7.6 per cent expected in 2015-16, with downside risks from the weak global economic scenario.
"Amidst a muted global economic scenario, this growth is encouraging. While the implementation of the seventh pay commission award and normal monsoons are expected to provide some reprieve, it is critical to pursue all measures that would boost demand on a sustained basis," Ficci President Harshavardhan Neotia said.
"We are happy to note that amidst gloomy signs around the world, this survey positions India to be in the safe zone especially with a healthy GDP growth rate of 7 per cent to 7.5 per cent during 2015-16," President of the Cochin Chamber of Commerce and Industry (CCCI), C S Kartha, said here.