Ahead of Lok Sabha polls, govt expects jump in GDP to 7.5% in FY 20; all you need to know

The finance ministry has predicted the economic growth to scale up to 7.5 per cent in FY 2019-20 from 7.2 per cent projected for the current fiscal.

Govt has predicted the economic growth to scale up to 7.5 per cent in FY 2019-20. (Image: PTI)

New Delhi: As the country inches closer to the 2019 Lok Sabha elections, the finance ministry has predicted the economic growth to scale up to 7.5 per cent in FY 2019-20 from 7.2 per cent projected for the current fiscal. Speaking to news agency PTI, the Economic Affairs Secretary Subhash Chandra Garg said that the government is looking at nominal growth of 11.5 per cent (for 2019-20) and its assumption is 7.5 per cent real growth and 4 per cent inflation. We have been reasonable, he added. During Bharatiya Janata Party's rule since 2014, the economic growth went up to 8.2 per cent in 2016-17, the year in which the Prime Minister Narendra Modi announced denomination of high-value currency notes of Rs 500 and Rs 1,000. Even the interim Finance Minister Piyush Goyal, in the Budget speech, said that India is solidly back on track and marching towards growth and prosperity. The past five years have seen India being universally recognised as a bright spot of the global economy, Goyal said, adding that the country witnessed its best phase of macro-economic stability after BJP’s took over the Central government. “We are the fastest growing major economy in the world with an annual average GDP growth during last five years higher than the growth achieved by any government since economic reforms began in 1991,” he had said at the joint session in Parliament. Elucidating focus of the Budget 2019-20, Garg said it has tried to touch a major portion of population of the country in some way or the other. “Second is the conviction of the government that don't give doles but invest in the long-term asset creation with a view to making the life of people better. Invest in the real factors, which build the life, which can make things more and more productive,” Garg was quoted as saying. The Economic Affairs Secretary also stated that the other distinguishing feature is that there should be fiscal consolidation and no expansionary policy, otherwise, it fuels inflation and crowd out private investment. Citing examples, he said enhancement of rural connectivity, rural electrification and housing for all are our efforts in that direction.