Explained: What to expect from Economic Survey 2020?

New Delhi, Jan 31: A day before the Union budget, Finance Minister Nirmala Sitharaman will table the Economic Survey in both houses of Parliament on January 31.

Prepared by Chief Economic Advisor Krishnamurthy Subramanian and his team, the Economic Survey will review the economic situation in the country in the current financial year.

It may also dwell on issues like rising unemployment, opportunities for India in the wake of the global trade war and ease of doing business.

This year's economic survey will be keenly watched as it comes at a time the economy is starting at an estimated 5 per cent annual rate of expansion - the slowest pace since 2009-09 - amid thousands of job cuts due to weakness across sectors.

What is Economic Survey?

A flagship document of the finance ministry, the Economic Survey is a review of the developments in the Indian economy over the previous 12 months.

The survey serves as a policy guideline for the Union Budget. However, its recommendations are not binding on the government.

The survey prepared by Chief Economic Adviser Krishnamurthy Subramanian is likely to flag headwinds that the economy might face in its pursuit to become the world's fifth-largest economy.

It is also likely to detail reforms road map needed to fulfil Modi's goal of more than doubling the size of the economy to USD 5 trillion by 2024.

What to expect from Economic Survey 2020?

With the Indian economy in the doldrums, the Economic Survey ahead of the Union Budget is expected to offer key insights into the path ahead for the government to revive growth.

The survey provides insights on the government's plans, delineates policy challenges faced by the government and makes necessary suggestions.

It is expected to shed light on the crucial gaps that the Budget will aim to fill in terms of unemployment, private investment, and a slump in consumption.

The survey is crucial with GDP growth hitting rate a more than six-year low of 4.5 per cent in the September quarter and consumer inflation soaring to 7.35 per cent in December - the worst level recorded since July 2014.

The economic survey is expected to project India's growth of 6 per cent to 6.5 per cent in the next year starting April 1, boosted by a series of fiscal measures.