The economic survey has submitted by Chief Economic Adviser Krishnamurthy Subramanian in the Parliament today before the Union Budget 2019. The survey projects the state of the economic health of India and outlines the challenges. As of now, the Indian economy is at a 5-year low of 6.8% in 2018-19. However, in this economic survey, it has pegged a GDP growth rate of 7% for FY20 from a previous fiscal rate of 6.8%.
In the presentation of economic survey, CEA Krishnamurthy Subramanian said, “We will be sticking to the fiscal path which has been laid out; if the private investment has to increase, it cannot be allowed to be crowded out by public investment. The Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), Bibek Debroy welcomed and the Economic Survey’s emphasis on fiscal consolidation and fiscal discipline and investments, especially private investments, as the growth driver.
To meet future demand and further investment, CEA Krishnamurthy Subramanian emphasized the private investments which can make firms more productive, bringing jobs and increasing exports, making firms able to compete in the global market.
On the economic survey, the NITI Aayog vice-chairman Rajiv Kumar said, “The economic survey reflects the government’s resolve to maintain fiscal stability while pushing up GDP growth rates by measures to accelerate private investment. He said the report provides a comprehensive and clear picture of economic trends and challenges ahead.”
Other Key Outlines of Economic Survey
- To address the key hurdle of delays in contract enforcement and dispute resolution, it is important to filling existing judicial vacancies and improving productivity improvements in courts.
- India is to develop an EV manufacturing hub like Detroit.
- The economic survey shows that those states which were rigid in respect of their labor laws have not only suffered in all dimensions but have also been unable to create enough employment. These states have also failed to attract adequate capital investment which is necessary for job creation.
- The economic survey of 2018-19 suggested deregulation of labor laws to create more jobs in the country.
- As per the economic survey, the major challenge in the Indian industry and infrastructure sectors is to bring in adequate private investment in collaboration with the public sector.
- Pick-up investments to help job creation says Economic Survey 2019
- The decline in NPA’s should help push the Capex cycle.
- The survey also lays out an ambitious agenda for behavioral change including gender equality, a healthy & beautiful India, savings, tax compliance, and credit quality.
- The survey pointed out the robust and resilient infrastructure to create a $10 trillion economy by 2032.
- They survey highlight the low pay and wage inequality remain serious obstacles towards achieving inclusive growth.