"The (Indian) market has rebounded time and time again, and it is hoped that as the global financial markets settle down, India can become the leading investment destination owing to its robust macroeconomic fundamentals," as per the 2015-16 report card of the state of the economy tabled by Finance Minister Arun Jaitley in Parliament.
Ahead of the Union Budget, the Economic Survey termed external environment as challenging but projected a 7-7.5 per cent GDP growth rate in the next fiscal which could accelerate to eight per cent in a couple of years.
The Economic Survey for 2015-16, which was tabled in Parliament on Friday, also made a case for carrying forward the reform process to achieve macro-economic stability.
Inspite of challenges and lower than projected GDP growth rate during 2015-16, "the fiscal deficit target of 3.9 per cent of GDP seems achievable."
After a 7.2% economic growth in 2014-15, it said the expansion in economy will be 7.6% in the current fiscal, the fastest in the world.
However, it cautioned that if the world economy remained weak, India's growth will face considerable headwinds.
On the domestic side, two factors can boost consumption, increased spending from higher wages and allowances of government workers if the 7th Pay Commission is implemented and return of normal monsoon.
The survey said, Indian stocks are relatively resilient despite volatility in the worldwide financial markets and the country can become a leading investment destination going ahead.
"The (Indian) market has rebounded time and time again, and it is hoped that as the global financial markets settle down, India can become the leading investment destination owing to its robust macroeconomic fundamentals," as per the 2015-16 report card of the state of the economy tabled by Finance Minister Arun Jaitley in Parliament today.
"Despite volatility in global financial markets, the Indian equity market has been relatively resilient during this period compared to the other major emerging market economies," it added.
The Survey also said that the average borrowings by banks have increased significantly in the immediate aftermath of US fed rate hike, resulting in appreciation of the rupee.
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