Betting big on India’s exports which have grown nominally in the on-going fiscal after two years of continuous decline, the Economic Survey has projected that it could increase the country's gross domestic product (GDP) by 1 per cent in the next fiscal year.

“Given the high elasticity of Indian real export growth to global GDP, exports could contribute to higher growth next year, by as much as 1 percentage point,” the Economic Survey for 2016-17, presented in Parliament on Tuesday by the Finance Minister, pointed out.

India’s exports appear to be recovering, based on an uptick in global economic activity. This is expected to continue in the aftermath of the US elections and expectations of a fiscal stimulus, the Survey said.

What adds to the general optimism, is the IMF’s January update of its World Economic Outlook forecast projecting an increase in global growth from 3.1 per cent in 2016 to 3.4 per cent in 2017, with a corresponding increase in growth for advanced economies from 1.6 per cent to 1.9 per cent.

There are some nascent signs of a global rebound in the last two quarters, the survey said, adding that a strong export recovery would have broader spillover effects to investment.

India’s exports declined by 1.3 per cent and 15.5 per cent in 2014-15 and 2015-16 respectively mostly due to a fall in global demand. The trend of negative growth was reversed somewhat during 2016-17 (April-December), with exports registering a growth of 0.7 per cent to $ 198.8 billion from $ 197.3 billion in 2015-16 (April-December).