Economic Survey 2018-19 Highlights

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

New Delhi: Following are the highlights of the Economic Survey 2018-19 tabled in Parliament Thursday: * 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.