Highlights of Economic Survey

The Economic Survey 2019-20 was prepared by Chief Economic Advisor Krishnamurthy Subramanian and Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman presented the Economic Survey 2019-20 in the Parliament.

• GDP growth pegged at 6 - 6.5% in the fiscal year starting April 1, up from 5% in current fiscal year.

• Fiscal deficit target for current fiscal may need to be relaxed to revive growth.

• Uptick in growth projected in second half of 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 $5 trillion economy by 2025.

• Share of formal employment increased from 17.9% in 2011 - 12 to 22.8% 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 $5 trillion by 2024 - 25, India needs to spend about $1.4 trillion over these years on infrastructure.

• 2.62 crore new jobs created in rural, urban areas between 2011 - 12 and 2017 -18 among regular wage/salaried employees.

• 8% increase in regular employment of women in 2017 - 18 over 2011 – 12.

• Excessive government intervention in markets, especially when the market can do the job of enhancing citizens welfare perfectly well, stifles economic freedom.

• Debt waivers disrupt the credit culture, reduces formal credit to same farmers.

• Suggests government to systematically examine areas where it needlessly intervenes and undermines markets.

• Calls for improving governance in public sector banks, more disclosures to build trust.

• Calls for measures to make it easier to start new business, register property, pay taxes, enforce contracts.

• Easing of crude prices lowers current account deficit; imports contract more sharply than exports in first half of current fiscal.

• Declining inflation from 3.2% in April 2019 to 2.6% in December 2019, reflecting weakening demand pressure in the economy.

• GST collections grew by 4.1% for the centre during April-November 2019.