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Economic Survey 2019: Economy projected to grow at 7% in 2019-20

The goal is to become a $ 5 trillion economy by FY 2025.

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On Thursday, Nirmala Sitharaman tabled the 2019 Economic Survey in the Upper House of Parliament where she said they hoped for better growth in Financial Year 2019-20. 

 

According to the Economic Survey for 2018-19, tabled by Finance Minister Nirmala Sitharaman in the Rajya Sabha, "real GDP growth for the year 2019-20 is projected at 7 per cent reflecting a recovery in the economy after a deceleration in the growth momentum throughout 2018-19." The fiscal deficit estimate for 2018-19 has been retained at 3.4 per cent of the GDP, same as projected in the interim Budget. 

The survey added that rural development would continue at pace. Noting that the average GDP growth over the last five years had been 7.5%, it stated that India would need to maintain a GDP growth of 8% till Financial Year 2025.

The target is to become a $5 trillion economy by FY25. The survey warned that slow growth and GST could affect agricultural plans and the target was in FY-21 to maintain a 3% fiscal deficit. The survey warned that if growth was slow, revenue would be impacted.

Earlier, Chief Economic Adviser Krishnamurthy Subramanian told ANI: "Our team has put in a lot of effort with a lot of dedication. I hope results are good, and we are able to contribute to the ideas for the economy. I hope the almighty blesses us."

* GDP growth pegged at 7 pc in 2019-20, up from 6.8 pc last fiscal

* Growth in current fiscal to be driven by investment, consumption

 * Sustained 8 pc growth needed to become a USD 5-trillion economy by 2024-25

 * Huge political mandate augurs well for growth prospects

* Investment is the "key driver" of simultaneous growth in demand, jobs, exports & productivity

 * Green shoots in investment, visible pick-up in credit growth seen

* Crude oil prices to decline in 2019-20, to push consumption

* General government fiscal deficit seen at 5.8 pc in 2018-19, against 6.4 per cent last fiscal

* Projects imports to grow at 15.4 pc, exports at 12.5 pc for 2018-19

* Projects 283.4 million tonne of foodgrain production in 2018-19

* Foreign exchange reserves at USD 422.2 billion in June 2019

* Suggests policies to unshackle MSMEs to grow, create jobs and enhance productivity

* Calls for reorienting policies to promote young firms which have the potential to become big, rather than small MSME firms which remain small

* Flags need to prepare for ageing of the population; this necessitates more healthcare investment, increasing retirement age in a phased manner

* Highlights the immense potential of data of societal interest, says data should be "of the people, by the people, for the people"

 * Legal reform, policy consistency, efficient labour markets and use of technology focus areas

* Contract enforcement biggest constraint to improve Ease of Doing Business ranking; much of the problem is concentrated in the lower courts

* Low pay and wage inequality remain serious obstacles towards achieving inclusive growth.

* Policy changes needed to lower overall lifetime ownership costs and make electric vehicles an attractive alternative to conventional vehicles

* Survey recommends harmonised overarching National Policy on Resource Efficiency


With inputs from agencies

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