The Economic Survey 2019-20 tabled in the parliament on Friday predicted the GDP growth between 6% and 6.5% in the fiscal year starting 1 April. If this prediction holds true, this will be up from the current 5%. The survey also said that the fiscal deficit target for the current financial year may need to be relaxed to revive economic growth.
The survey also asked the government to deliver expeditiously on reforms to revive the growth. It said that ethical wealth creation was vital to India becoming a USD 5 trillion economy by 2025 adding that to achieve the GDP of USD 5 trillion by 2024-25, India must spend about USD 1.4 trillion over these years on infrastructure.
Here are some other key highlights of the economic survey as reported by news agency PTI:
- The theme of survey is wealth creation, promotion of pro-business policies, strengthening of trust in the economy
- Share of formal employment increased from 17.9% in 2011 -12 to 22.8% in 2017-18 reflecting formalisation in the economy
- 2.62 crore new jobs created in rural, urban areas between 2011-12 and 2017-18 among regular wage/salaried employees
- 8% increase in regular employment of women in 2017-18 over 2011-12
- Excessive government intervention in markets, especially when the market can do the job of enhancing citizens welfare perfectly well, stifles economic freedom
- Debt waivers disrupt the credit culture, reduces formal credit to same farmers
- Suggests the government to systematically examine areas where it needlessly intervenes and undermines markets
- Calls for improving governance in public sector banks, more disclosures to build trust
- Calls for measures to make it easier to start new business, register property, pay taxes, enforce contracts
- Easing of crude prices lowers current account deficit; imports contract more sharply than exports in first half of current fiscal
- Declining inflation from 3.2% in April 2019 to 2.6% in December 2019, reflecting weakening demand pressure in the economy
- GST collections grew by 4.1% for the centre during April-November 2019.