India’s Finance Minister Nirmala Sitharaman tabled the first Economic Survey of the re-elected Narendra Modi government in Parliament. The Economic Survey 2019 is being prepared by Chief Economic Adviser Krishnamurthy Subramanian. Prepared by the new Chief Economic Adviser Krishnamurthy Subramanian, Economic Survey 2019 lays out the roadmap for the Modi government’s next five years.
- To achieve the PM Narendra Modi’s vision of $5 trillion economy by 2024, India needs to shift its gears to sustain a real GDP growth rate of 8%, says Economic Survey 2019.
- Economic Survey predicts 7% growth rate for this fiscal.
- Investment the “key driver” of simultaneous growth in demand, jobs, exports & productivity.
- Dwarfs (firms with less than 100 workers) despite being more than 10 years old, account for more than 50% of all organized firms in manufacturing by number. Contribution of dwarfs to employment is only 14% and to productivity is a mere 8%.
- Swachh Bharat mission: 93.1% of the households have access to toilets. 96.5% of those with access to toilets are using them in rural India.
- India still the fastest growing major economy in 2018-19. Growth of GDP moderated to 6.8 per cent in 2018-19 from 7.2 per cent in 2017-18.
- Economic Survey provisionally estimates 2.9% growth rate for the agriculture,forestry and fishing sector.
- Survey predicts that working-age population will grow by about 97 lakhs per year in the upcoming decade.
- NDA 2.0 aims to make the domestic markets more attractive and accessible to foreign investors.
- Domestic institutional investors, including mutual funds and insurance firms, are net sellers of equities to the tune of nearly ₹8,000 crore in the first 6 months of 2019.
- The Economic Survey usually covers and analyses the trends in different sectors including agricultural and industrial production, employment, money supply, infrastructure, prices, foreign exchange reserves, imports, exports, and other relevant economic factors which are essential for framing the Budget.
This year the budget is expected to focus on higher allocation of smart cities, rural electrification, and a rise in capex for railways and defence & 8% growth rate on the back of investments to support exports-led growth to achieve the Prime Minister’s goal of making India $5 trillion economy by 2024-25.