The Economic Survey for 2018-19, tabled in Parliament on Thursday, is said to have estimated the gross domestic product (GDP) growth for 2019-20 at 7 per cent, mainly on a stable macroeconomic situation in the country. Television reports say that the Survey has attributed an economic slowdown in the January-March quarter partly to election-related uncertainty.
Investment rate should pick up in FY20 on higher credit growth and improved demand, the Survey, projecting the state of economy and outlining the challenges facing it, is believed to have said. A decline in the banking sector’s non-performing assets (NPAs) should help push the capital expenditure cycle, making case for an accommodative monetary policy to help cut real lending rates, according to TV reports citing the Economic Survey authored by Chief Economic Advisor Krishnamurthy Subramanian
Economic Survey 2019 sees lower global growth and an increased uncertainty over trade tensions affecting India’s exports, and lower global oil prices boosting consumption, Reuters said citing sources. The Survey is also believed to have estimated that India will need to grow at 8 per cent annually to become a $5-trillion economy by FY25.