The Department of Economic Affairs of the Finance Ministry presents the Economic Survey in Parliament every year a day before the Union Budget.
The Department of Economic Affairs of the Finance Ministry presents the Economic Survey in Parliament every year a day before the Union Budget. Here are some of the key highlights from the document.
- Centre predicts seven percent GDP growth in FY20 on stable macro conditions.
- Provisionally estimates 2.9 percent growth rate for agriculture, forestry and fishing sectors in FY20.
- Sees fiscal deficit at 5.8 percent in FY19 versus 6.4 percent in FY18.
- Says greenshoots in investment activity seem to be taking hold.
- Warns that investment rate seems to have bottomed out.
- Blames January-March slowdown partly on poll-related uncertainty and NBFC crisis.
- Going forward, political stability should push animal spirits of the economy..
- Sees several challenges -- slow Growth, GST, farm schemes -- on the fiscal front in FY20.
- Requests Centre not to compromise on fiscal gap aim to fund new schemes.
- Says GST buoyancy in FY20 key to improved fiscal situation.
- Warns revenue mop-up may be hit if growth slows in FY20.
- Increased uncertainty over trade tensions and lower global growth may hit exports.
- Expects government policy to further lift restrictions on FPI inflows.
- In a veiled hint at the Reserve Bank to lower interest rates, the Finance Ministry says
liquidity has remained systematically tight since September last year, impacting yields.
- Aggressive export strategy must be part of investment-driven model.
- Survey makes the case for investment as a key driver; says focus on SMEs key.
- Weighs upon top policymakers to ensure actions are predictable. This will be music to foreign investors that have repeated cited policy uncertainty while undertaking business in India.
