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Economic Survey 2017-18
An Overview of Indias Economic Performance in 2017-18 Savings and investment:s
ABHISHEK SRIVASTAVA . Category leader at Unacademy . Top educator with more than 2 mn views . Appeared in UPSC CSE Mains twice . Qualified SSC CGL, IBPS PO, IIT JEE . Appeared in RBI Grade B Mains . Courses: o Editorial analysis- Oct,Nov & Dec'17 o News Analysis- Nov & Oct'17 o Crash courses . Polity, Modern, Ancient & Medieval History o Ncert Class VI History Summary o Delhi Sultanate o Essay writing https://unacademy.com/userlabhishek6077 F@abhishek6077
VOL.II Chapter 1: An Overview of India's Economic Performance in 2017-18 1. GDP growth in 2017-18 2. GDP and its Components 3. Savings and Investment 4. Public Finance 5. Prices and Monetary Management 6. External Sector 7. Prospects of Growth for 2018-19 8. Sectoral Developments 9. Sustainable Development, Energy and Climate Change
SAVINGS AND INVESTMENT The investment rate in the economy declined by nearly 5.6 percentage points between 2011-12 and 2015-16. This was on account of number of factors viz difficulties in acquiring land o delayed and cumbersome environmental_clearances dvironmental dlearances problems on infrastructure front, etc. Although many of these problems have been addressed, resulting in improved power situation, lessening of infrastructure bottlenecks, etc.,the investment rate has not picked up. Savings rate also declined by two and half percentage points between 2011-12 and 2013-14 and has remained rangebound thereafter The faster decline in investment rate vs the savings rate has led to lower level of current account deficit (Savings Investment gap) from 2013-14 to 2015-16.
2011-12 39.0 34.6 -4.3 2012-13 38.7 33.9 -4.8 2013-14 33.8 32.1 2014-15 34.4 33.1 2015-16 Savings rate Saving Investment gap Gross Savings as a share of GDP (per cent) 1-12 02-13 3-14 129 2004-15 49 74 2005-16 119 112 50 100 5.0 350
Savings: Savings in an economy originate from households, private corporate sector and public sector The savings of household sector as a ratio of GDP have declined from 23.6 per cent in 2011-12 to 19.2 percent in 2015-16, while that of private corporate sector have increased The share of private corporate sector in the total savings increased from 9.5 percent of GDP in 2011-12 to about 12 percent of GDP in 2015-16. With the general government savings showing an improvement, (although it continued to be in negative territory),increased again in 2015-16. Reason: higher collection of union excise duties,particularly from petroleum products and reduced level of petroleum subsidy bill of the central government. Financial saving of households: Mainly in currency, bank deposits, life insurance funds, provident and pension funds and of late in the form of shares and debentures. Decline in the proportion of deployment of financial savings in bank deposits and life insurance funds. Savings held in shares and debentures more than doubled, and within this category, mutual funds segment increased by 126 per cent
there was a decline in the savings in the form of currency by over 250 per cent(owed to the withdrawal of high denomination currency notes). The slow growth in fixed investment in the recent years could partly be ascribed to twinbalance sheet problem. The institution-wise break-up of the investment in the economy has undergone significant changes in the last few years The growth rate of capital expenditure by the government (at current prices) increased from an average of about 7 per cent in during 2012-13 to 2014-15 to over 21 per cent in 2015-16. The share of private corporate sector in total investment increased from 36 per cent in 2011-12 to 41 per cent in 2015-16 and it has become largest sector for investment in the economy,replacing the household sector The investment of household sector declined from 15.9 in 2011-12 to 10.9 per cent of GDP in 2015-16 1. 2. 3.
Fixed investment accounts for around 90 percent of total investment. 1. Fixed investment is in various assets including dwellings, (57-58 per cent of fixed investment and this share has remained fairly stable) 2. Machinery & equipment and intellectual property products (IPP), 3. Along with small contribution coming from cultivated biological resources (CBR) change in this pattern: However, household's investment in dwellings has declined considerably, which is possibly Il. On the other hand, nearly the entire increase in the share of fixed investment of public sector Ill. The reduction in share of machinery segment of fixed investment is primarily accounted for IV. The share of 'Others' (IPP along with CBR) increased on account of higher investment in this linked to reduction in the share of household's savings in the form of physical assets. is on dwellings. by the household sector category by the private corporate sector
Mon | 05:51 PM Reviews & Ratings Thank You Vishnu Choure Thank you for the course, we really need it. Please keep doing this great work, I am really fond of your teaching, plain and simple Thank You, Abhishek sir Keep Learning!! Harshita Simple and crisp explanation of the editorial in short time span. Lots of thanks to Abhishek Sir for bringing this course. Time saving and effective. Thanks for all your amazing courses be it crash course in mih, ancient or mediaeval history. TArnika Negi very very useful please continue it.. thanks a lot Darshan Mp loving w,.hank you....kxepr poig