The Indian Economy has sustained a macroeconomic environment of relatively lower inflation, fiscal discipline and moderate current account deficit coupled with a broadly stable rupee-dollar exchange rate. The Economic Survey 2016-17 presented to the Parliament by the Union Finance Minister Arun Jaitley states that such a sustenance is despite continuing global sluggishness. It says :
As per the advance estimates released by the Central Statistics Office, the growth rate of GDP at constant market prices for the year 2016-17 is placed at 7.1 per cent, as against 7.6 per cent in 2015-16.This estimate is based mainly on information for the first seven to eight months of the financial year. Government final consumption expenditure is the major driver of GDP growth in the current year.
Fixed investment (gross fixed capital formation) to GDP ratio (at current prices) is estimated to be 26.6 per cent in 2016-17, vis-à-vis 29.3 per cent in 2015-16.