India forecast its would grow 7-7.5% in the fiscal year to March 2017, the said on Friday, ahead of the presentation of the annual by Finance Minister Arun Jaitley on Monday.

The economic survey, the basis for Jaitley's for the fiscal year starting April 1, projected India to grow 8% in the next couple of years.



However, the government cautioned that if the world 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 Seventh Pay Commission is implemented and return of normal monsoon.

At the same time, the Survey enumerated three downside risks - turmoil in global could worsen the outlook of exports, contrary to expectations oil price rise would increase the drag from consumption and the most serious risk is the combination of these two factors.

#EconomicSurvey 2015-16:Expects GDP growth rate for 2015-16 in the range of 7 % to 7.75 % pic.twitter.com/kO5CVG96QR — Ministry of Finance (@FinMinIndia) February 26, 2016

The survey was prepared by the finance ministry's chief economic adviser Arvind Subramanian.

Following are the highlights of the report:

Fiscal Deficit

- 2015/16 fiscal deficit seen at 3.9% of GDP seems achievable

- 2016/17 expected to be challenging from fiscal point of view

Inflation

- Low inflation has taken hold, confidence in price stability has improved

Current Account Deficit

- 2016/17 current account deficit seen around 1-1.5%of GDP