Economic Survey sees pick up in growth buts calls for expansionary policy

The Economic Survey on Friday projected revival of economic growth to 6-6.5 per cent in the next fiscal beginning April 1 but suggested the government to relax the budget deficit target to boost growth from a decade low.

The Survey, released a day before Finance Minister Nirmala Sitharaman presents the Union Budget for 2020-21, called for cutting food subsidy while at the same time looking at businessmen with respect as they create wealth and jobs.

Facing the worst economic slowdown since the global financial crisis of 2008-09, the Survey called for boosting manufacturing with 'assemble in India for the world' concept so as to boost job creation.

For the current fiscal, it projected a GDP growth of 5 per cent, the lowest in 11 years, and worsening job prospects.

"The deceleration in GDP growth can be understood within the framework of a slowing cycle of growth with the financial sector acting as a drag on the real sector," it said. "The government must use its strong mandate to deliver expeditiously on reforms, which will enable the economy to strongly rebound in 2020-21."
Stating that only when wealth is created, it can be distributed, Subramanian said, "A feeling of suspicion and disrespect towards India's wealth creators is ill-advised."