Benchmark indices were trading in red following the Economic Survey for 2017-18, which was tabled in Parliament on Monday. Chief Economic Advisor Arvind Subramanian struck an optimistic note about economic growth going forward. The Survey noted that there were “robust signs of growth” in the second half of the financial year, and predicted that growth for the full 2017-18 financial year would be 6.75% year on year, higher than the Central Statistics Office’s prediction of 6.5%.
The Survey further estimated that the fading of shocks to economic activity like demonetisation together with a recovery in global demand and some domestic policy actions would raise growth in the coming financial year to 7-7.5%. If this is borne out, that would mean India would again be the fastest-growing large economy in the world.
Globally, Asian stocks retreated from record peaks on Tuesday after a selloff in Apple shares knocked Wall Street, while the dollar found support as U.S. bond yields climbed to near four-year highs.business-standard