Eco Survey projects 6%-6.5% growth for 2020-21, hints economy bottomed out

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  • Estimated to be 5% in the current financial year, may need to leave the target of fiscal deficit to increase growth
  • Government measures to stabilize onion prices do not seem to be affected: Survey

 

Finance Minister Nirmala Sitharaman presented the Economic Survey in Parliament on Friday. The survey, prepared by Chief Economic Advisor Krishnamurthy Subramanian, expects GDP growth to reach 6-6.5 percent in the coming financial year (2020-21). It is estimated to be 5% in the current financial year (2019-21). It will be the lowest in 11 years. The survey says that India is also being affected by weakness in global growth. Growth in the current financial year also declined due to a lack of investment due to financial sector problems. However, the fall that had to come is already done. Growth is expected to increase from the next financial year.

Finance Minister Nirmala Sitharaman presented the Economic Survey in Parliament

The survey also said that the government’s measures to bring stability in commodity prices like onion do not seem to be effective. This time the Economic Survey was printed in light purple (lavender) color, as is the color of the new Rs 100 note.

Suggestion to the government in the economic survey

  • In order to boost growth, fiscal deficit targets may have to be withdrawn.
  • Property has to collect before the distribution of assets, traders should look at it with respect.
  • Manufacturing needs ideas such as ‘assembling in India for the world’. This will also increase employment.
  • Red tape should abolish at ports to boost exports. So that the business environment can be easier.
  • Rules for starting a business, property registration, tax payment, and contract enforcement should be simplified.
  • To improve the functioning of public sector banks and to increase confidence, more and more information should be made public.

The prepared survey in six months: Chief Economic Advisor

The economic survey shows how the country was on the economic front in the last year. Through this, the Chief Economic Advisor also gives suggestions to the government, so that the goals of the economy can be achieved. The budget came on July 5 last year. The Economic Survey presented on 4 July. Chief Economic Advisor Krishnamurthy Subramanian said that his team worked hard and prepared an economic survey in just 6 months this time.

The first phase of the budget session will run till 11 February

Finance Minister Nirmala Sitharaman will present the general budget on Saturday. The facts of the Economic Survey taken into consideration in the budget. But, it is not necessary that the economic survey should be reflected in the budget. The budget session has also started today. The first phase of the budget session will run till 11 February. The second phase will start from March 2 to April 3.

 

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