Union Finance Minister Arun Jaitley today said that the Budget is being presented under world economic uncertainties. However, India stands out as a bright spot in the world economy. There was an increase of 36% in FDI in India. Jaitley also said that the economy has weathered a number of shocks but still it stands strong. Jaitley quoted IMF report which has noted India’s growth potential in its recent report. He said India has taken a number of path-breaking measures such as demonetisation and GST which would propell India to the path of development. Jaitley thanked state governments for resolving GST conflicts in the public interest.
Notably, India features among top six for global executives when it comes to overall growth prospects over the next 12 months, but enthusiasm for investing in the country has dropped from three years ago, according to a survey. According to the annual global CEO survey of consultancy giant PwC, released at the WEF annual meeting, the top two markets from the growth point of view are the US, as voted by 43 per cent of respondents, followed by China (33 per cent). Others in the pecking order are Germany (17 per cent), UK (15 per cent), Japan (8 per cent) and India (7 per cent). Last year, India was among the top five most promising markets globally.
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The constant dilemma of any Finance Minister during the Union Budget, is how to balance the conflicting requirement of persistent demands for higher resources from all sectors of economy and government (including the ruling party), while keeping the fiscal health of the economy in mind. The Budget 2017 is a test for the Finance Minister to balance economic necessities, while managing political sensibilities. The choices the FM makes in the Union Budget are especially pertinent with the backdrop of the current shift in the global political economy, with the rising trend of protectionism and de-globalization, even as the domestic growth outlook continues to remain weak.