Govt expects 7.5% GDP growth in FY20, up from 7.2% in FY19; 4% inflation, says economics secretary SC Garg

New Delhi: The finance ministry expects economic growth to accelerate to 7.5 percent in 2019-20 from 7.2 percent projected for the current fiscal. The growth was 8.2 percent in 2016-17, the year in which the government demonetised high-denomination currency notes of Rs 500 and Rs 1,000. “We are looking at nominal growth of 11.5 percent (for 2019-20). Our assumption is 7.5 percent real growth and 4 percent inflation. We have been reasonable,” Economic Affairs Secretary Subhash Chandra Garg told PTI. Finance Minister Piyush Goyal in the Budget Speech said that India is solidly back on track and marching towards growth and prosperity. [caption id=“attachment_5251131” align=“alignleft” width=“380”]  Economic affairs secretary Subhash Chandra Garg. Image courtesy - Twitter[/caption] The past five years have seen India being universally recognised as a bright spot of the global economy, he said, adding that the country witnessed its best phase of macro-economic stability during this period. “We are the fastest growing major economy in the world with an annual average GDP growth during last five years higher than the growth achieved by any government since economic reforms began in 1991,” he had said. Elucidating focus of the Budget 2019-20, Garg said it has tried to touch a major portion of the population of the country in some way or the other. “Second is the conviction of the government that don’t give doles but invest in the long-term asset creation with a view to making the life of people better. Invest in real factors, which build the life, which can make things more and more productive.” “The other distinguishing feature is that there should be fiscal consolidation and no expansionary policy, otherwise, it fuels inflation and crowd out private investment,” Garg said. Citing an example, he said enhancement of rural connectivity, rural electrification and housing for all are efforts in that direction.