Key takeaways from Economic Survey 2020
New Delhi, Jan 31: Finance Minister Nirmala Sitharaman on Friday tabled economic survey projecting the country's economic growth at 6-6.5 per cent for the next fiscal year starting April 1.
The growth in 2020-21 compares to a projected 5 per cent expansion in 2019-20.
Authored by India's Chief Economic Adviser Krishnamurthy Subramanian, the Economic Survey comes at a time when the country is facing the worst economic slowdown in a decade.
Economic Survey's theme this year is wealth creation.
The industrial growth in the fiscal year (FY) 2019-20 estimated at 2.5 per cent.
Agriculture and allied sectors to grow at 2.8 per cent in the coming financial year, growth in current year estimated at 2.9 per cent.
Fiscal deficit target for current fiscal may need to be relaxed to revive growth.
The uptick in growth projected in the second half of the current fiscal based on 10 factors including higher FDI flows, build-up of demand pressure, positive GST revenue growth.
Survey asks government to deliver expeditiously on reforms to revive growth.
Ethical wealth creation key to India becoming USD 5 trillion economy by 2025.
Share of formal employment increased from 17.9 per cent in 2011 -12 to 22.8 per cent in 2017-18 reflecting formalisation in the economy.
Theme of Survey is wealth creation, promotion of pro-business policies, strengthening of trust in the economy.
To achieve GDP of USD 5 trillion by 2024-25, India needs to spend about USD 1.4 trillion over these years on infrastructure.
Talking to the media ahead of the release of the Economic Survey, Subramanian said "Our team has done a lot of hard work. The team has prepared the second economic survey in six months."
The pre-Budget Survey said the government must use its strong mandate to deliver expeditiously on reforms, which will enable the economy to strongly rebound in 2020-21
The pre-Budget Survey said for wealth to be distributed, it first has to be created and called for looking at wealth creators with respect.
The Survey said government interventions seem to be ineffective in stabilising prices of commodities such as onions. For boosting growth, it called for new ideas for manufacturing such as 'assemble in India for the world' which will create jobs.
For boosting growth, it called for new ideas for manufacturing such as 'assemble in India for the world' which will create jobs.
To further make it easier to do business, the Survey called for removing the red tape at ports to promote exports as well as measures for easing the start of business, register property, pay taxes and enforcing contracts.
It also called for improving governance in public sector banks and the need for more disclosure of information to build trust. It also talks about dwarfism in the banking sector.