Economic Survey 2018: Air India privatisation, bank recapitalisation in focus

New Delhi: The Economic Survey on Monday set the agenda for 2018-19 — privatising Air India, the complete recapatilisation of PSU banks and stabilising GST implementation to remove uncertainty for exporters.

These will help India to move towards its medium-term growth potential of over eight per cent, it said.

The survey said that despite major policy reforms and even in the absence of major new steps, the policy agenda remained full. It said the government needs to ensure that the process of resolving major indebted cases and recapitalising state-owned banks is carried to a successful conclusion, while initiating reforms of public sector banks that will credibly shrink unviable ones and signal greater private sector participation in the future. “The government will also need to stabilise GST implementation to remove uncertainty for exporters, facilitate easier compliance and expand the tax base,” said Economic Survey 2017-18 tabled in Parliament by finance minister Arun Jaitley on Monday.

The survey warned against emerging macroeconomic concerns and said policy vigilance will be necessary in the coming year, and specially if oil prices remain high internationally or elevated stock prices correct sharply, provoking a sudden stall in capital flows.