Highlights of the Economic Survey 2018-19

Sakshi Education

The Survey is inspired by Gandhiji's Talisman: “…Recall the face of the poorest man [woman], and ask yourself, if the step you contemplate is going to be of any use to him [her]

Survey sees FY20 GDP growth at 7%, higher growth on stables macros. The real GDP growth projection reflects a recovery in the economy after a deceleration in the growth momentum in 2018-19. Growth is expected to pick up in 2019-20 as macroeconomic conditions continue to be stable while structural reforms initiated in the previous few years are continuing on course.
India needs to grow at 8% per year to be $5 trillion economy by FY25.
Investment the "key driver" of simultaneous growth in demand, jobs, exports & productivity
Green shoots in investment activity seems to taking hold.
Rural wages growth seems to have bottomed out and has started to increase since mid-2018. Further growth in rural wages should help spur rural demand.
One of the biggest hurdles to the economy is poor enforcement of contracts and dispute resolution. Steps to speed up legal process should be top priority.
Savings & growth are positively co-related. Savings must increase more than investment.
Indian MSMEs need to be freed from shackles that convert them into dwarfs. MSMEs need to be seen as a source of innovation, growth and job creation.
Investment rate seems to have bottomed out.
Jan-March has seen economic slowdown due to poll related activity.
NBFC stress reason for FY19 slowdown.
Decline in NPAs should push up CAPEX cycle.
General fiscal deficit seen at 5.8% in FY19 VS 6.4% in FY18. General fiscal deficit is defined as the balance of income and expenditure, and includes the deficit of the central and state governments.
Investment rate seen higher in FY20 on improved demand.
Oil prices seen declining in FY20.
Accommodative MPC policy to help cut real lending rates.