Govt tables Economic Survey 2018-19 in Parliament; here are major highlights

New Delhi: According to the Economic Survey 2018-19, tabled by Finance Minister Nirmala Sitharaman in Parliament, India continues to remain the fastest-growing major economy in the world in 2018-19, despite a slight moderation in its gross domestic product (GDP) growth from 7.2 percent in 2017-18 to 6.8 percent in 2018-19.

“India’s growth of real GDP has been high with an average growth of 7.5 percent in the last five years (2014-15 onwards). The economy grew at 6.8 percent in 2018-19, thereby experiencing some moderation in growth when compared to the previous year,” it said.

This moderation in growth momentum is mainly on account of lower growth in agriculture, trade, transport communication and services related to broadcasting among others, it said.

During the last five years, India’s economy has performed well, it said, adding that the government has ensured that the benefits of growth and macroeconomic stability reach the bottom of the pyramid by opening up several pathways for trickle-down.

“To achieve the objective of becoming a $5-trillion economy by 2024-25, as laid down by the Prime Minister, India needs to sustain a real GDP growth rate of 8 percent,” it said.

As per the survey, GDP growth for the year 2019-20 is projected at 7 percent, reflecting a recovery in the economy after a deceleration in the growth momentum throughout 2018-19.

Following are the highlights of the Economic Survey 2018-19:

• GDP growth pegged at 7 percent in 2019-20, up from 6.8 percent last fiscal
• Growth in current fiscal to be driven by investment, consumption
• Sustained 8 percent growth needed to become a $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 and 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 percent in 2018-19, against 6.4 percent last fiscal
• Projects imports to grow at 15.4 percent, exports at 12.5 percent for 2018-19
• Projects 283.4 million tonne of foodgrain production in 2018-19
• Foreign exchange reserves at $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 the ageing of the population; this necessitates more healthcare investment, increasing the 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
• The survey recommends harmonised overarching National Policy on Resource Efficiency.

(With PTI inputs)