Economic Survey 2019: The Economic Survey 2019 tabled in the Parliament a day ahead of general budget 2019 has predicted the GDP growth to get stronger as it pegged 7 per cent growth for FY20, up from 6.8 per cent in the previous fiscal.
Economic Survey 2019: The Economic Survey 2019 tabled in the Parliament a day ahead of general budget 2019 has predicted the GDP growth to get stronger as it pegged 7 per cent growth for FY20, up from 6.8 per cent 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 maiden survey by Chief Economic Adviser KV Subramanian on Thursday also said that the government has stood by the promise of fiscal consolidation in FY19.
The stable macroeconomic conditions have helped the economic growth rate to grow at a higher pace, the survey added. The greenshoots in investment activity seem to be taking hold and the political stability should push animal spirits of the economy moving ahead, it added.
Highlights of Economic Survey 2019:
- GDP growth for 2019-20 at 7 per cent
- Must sustain 8 per cent GDP growth to become $8 trillion economy by 2025.
- Accommodative MPC policy to help cut real lending rates
- Oil prices to decline in FY20 from current levels
- Stress in NBFC sector also a reason behind FY19 growth slowdown
- Fall in NPAs should push capex cycle
- January March slowdown due to general elections related uncertainties
- Investment rate appears to have bottomed out
- The fiscal deficit estimate for FY19 retained at 3.4 per cent of the GDP, same as projected in the interim Budget.
- The political stability expected to push growth.
- Farmers may have produced less in FY19 on fall in food prices
- Rise in rural wage growth seen since mid-2018
- Top policymakers must ensure actions are predictable
- Rural ages seem to have bottomed out
- US-Iran sanction for oil import likely to have impact on oil prices, petroleum subsidy
- Investment a key driver, focus on SMEs key
- Savings must increase more than investments for accumulation of precautionary savings
- Savings and growth are positively co-related
- Aggressive export strategy must be part of investment-driven model
- Could be an upward pressure on crude oil prices as global economic growth grows
- Liquidity systematically tight since September 2018, impacting bond yields