Economic Survey pegs economic growth at 7 pc for FY20, Read highlights

New Delhi: The government on Thursday pegged the growth rate for the current fiscal at 7 per cent, marginally up from the five-year low of 6.8 per cent recorded in the previous fiscal.

According to the Economic Survey for 2018-19, tabled by Finance Minister Nirmala Sitharaman in the Rajya Sabha, "real GDP growth for the year 2019-20 is projected at 7 per cent reflecting a recovery in the economy after a deceleration in the growth momentum throughout 2018-19."

The fiscal deficit, as per the survey deteriorated to 5.8 per cent of the GDP as compared to 3.4 per cent for 2018-19 estimated in the interim Budget.

Following are the highlights of the Economic Survey 2018-19:

-GDP growth pegged at 7 pc in 2019-20, up from 6.8 pc last fiscal

-Growth in current fiscal to be driven by investment, consumption

-Sustained 8 pc growth needed to become a USD 5-trillion economy by 2024-25

-Huge political mandate augurs well for growth prospects

-Investment is the "key driver" of simultaneous growth in demand, jobs, exports & productivity

-Green shoots in investment, visible pick-up in credit growth seen

-Crude oil prices to decline in 2019-20, to push consumption

-General government fiscal deficit seen at 5.8 pc in 2018-19, against 6.4 per cent last fiscal

-Projects imports to grow at 15.4 pc, exports at 12.5 pc for 2018-19

-Projects 283.4 million tonne of foodgrain production in 2018-19

-Foreign exchange reserves at USD 422.2 billion in June 2019

-Suggests policies to unshackle MSMEs to grow, create jobs and enhance productivity

-Calls for reorienting policies to promote young firms which have the potential to become big, rather than small MSME firms which remain small

-Flags need to prepare for ageing of the population; this necessitates more healthcare investment, increasing retirement age in a phased manner

-Highlights the immense potential of data of societal interest, says data should be "of the people, by the people, for the people"

-Legal reform, policy consistency, efficient labour markets and use of technology focus areas

-Contract enforcement biggest constraint to improve Ease of Doing Business ranking; much of the problem is concentrated in the lower courts

-Low pay and wage inequality remain serious obstacles towards achieving inclusive growth.

-Policy changes needed to lower overall lifetime ownership costs and make electric vehicles an attractive alternative to conventional vehicles

-Survey recommends harmonised overarching National Policy on Resource Efficiency.

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