"Economic Survey Outlines Vision To Achieve $5 Trillion Economy": PM Modi

The real gross domestic product (GDP) growth, which slowed to a five-year low of 5.8 per cent in the first three months of 2019 - well below China's 6.4 per cent - is expected to rise to 7 per cent in the fiscal year 2019-20 that started in April.

FILE PIC: PTI

New Delhi: PM Narendra Modi on Thursday said the economic survey 2019 outlines a vision to achieve a $5 Trillion economy. "It also depicts the gains from advancement in the social sector, adoption of technology and energy security," he said in a tweet. The Economic Survey tabled by finance minister Nirmala Sitharaman has projected India would grow at 7 per cent in 2019-20 and maintain its fastest growing large economy tag in the world. India's economic growth is expected to rebound from a five-year low to 7 per cent this year. The forecast before the Budget has come close on the heels of India registering slowdown in the last four quarters with the January-March period recording the slowest pace in last five years. Economic Survey: 7% GDP Growth Projected For FY20; But 8% Required To Become $5 Trillion Economy By 2025 Chief Economic Adviser KV Subramanian today said the Economic Survey 2019 was a blueprint for achieving the vision laid down by PM Modi. In a press briefing after the survey was tabled, he said "India must shift gears to achieve 8 per cent growth every year." Sitharaman before presenting Budget 2019 said India must shift gears to achieve 8 per cent growth every year. Investment rate, which was been declining from 2011-12, seems to have bottomed out, and is expected to pick up in consumer demand and bank lending. However, economic slowdown impacting tax collections and rising state expenditure on farm sector may put strains on the fiscal front, the survey presented in Parliament by Finance Minister Nirmala Sitharaman said.

The #EconomicSurvey2019 outlines a vision to achieve a $5 Trillion economy. It also depicts the gains from advancement in the social sector, adoption of technology and energy security. Do read!https://t.co/CZHNOcO7GV

— Narendra Modi (@narendramodi) July 4, 2019

The real gross domestic product (GDP) growth, which slowed to a five-year low of 5.8 per cent in the first three months of 2019 - well below China's 6.4 per cent - is expected to rise to 7 per cent in the fiscal year 2019-20 that started in April. But for India to become a USD 5-trillion economy - more than double the current size - by 2024-25, it needs to sustain a real GDP growth rate of 8 per cent, which international experience suggests is possible only through a sustained "virtuous cycle" of savings, investment and exports. "The political stability in the country should push the animal spirits of the economy, while the higher capacity utilisation and an uptick in business expectations should increase investment activity in 2019-20," the survey said. ALSO READ: Economic Survey 2019 Theme Guided By 'Blue Sky Thinking', Says CEA Krishnamurthy V Subramanian Oil prices, the Economic Survey 2018-19 said, will decline in current fiscal, pushing consumption. Consumption accounts for about 60 per cent of the GDP. The survey said an average company in Mexico doubles its employment when it is 40 years of age compared with when it was less than five years of age. While, an average firm in India employs only 40 % more workers when it is 40 years of age compared with when it was less than five years of age.. The survey suggested policies to unshackle micro, small and medium enterprises (MSMEs) to grow, create jobs and enhance productivity. It also called for reorienting policies to promote young firms which have the potential to become big, rather than MSME firms which remain small.  It said the MSME sector has been holding back job creation in the economy due to restrictive labour regulations. The survey flagged the need to prepare for the ageing of the population, necessitating more healthcare investment and raising the retirement age in a phased manner. Highlighting the immense potential of data of societal interest, the survey said data should be "of the people, by the people, for the people". Stating that low pay and wage inequality remain serious obstacles towards achieving inclusive growth, it called for legal reforms, policy consistency, efficient labour markets and use of technology focus areas. (With additional information from Agencies)