New Delhi: The government on Thursday pegged the growth rate for the current fiscal at 7 per cent, marginally up from the five-year low of 6.8 per cent recorded in the previous fiscal.
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, as per the survey deteriorated to 5.8 per cent of the GDP as compared to 3.4 per cent for 2018-19 estimated in the interim Budget.
Following are the highlights of the Economic Survey 2018-19 tabled in Parliament on Thursday:
* 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.
