According to the Economic Survey 2015-16, the sectoral growth was highest in which of the following sector in 2015-16 (advanced estimates)?
- Financing, real estate, professional services, etc
- Trade, hotels, transport and communication
The correct answer for yesterday’s question is 4 i.e. 1,2 and 3 only
The explanation is as follows:
The Survey outlines some challenges which make the growth prospects full of challenges ahead. These are as follows:
In recent times, the correlation between India’s growth and world growth has risen and is reasonably high now. Thus, a weak global growth will impact India’s exports, and this might hinder growth.
Currently, India is facing a “Twin balance sheet problem“. The balance sheets of corporate and banks have been stresses and that might affect prospects of reviving private investment.
The turmoil in global financial markets could impact capital flows, thus posing challenge to growth.