Finance Minister Nirmala Sitharaman on Friday tabled the Economic Survey of India in the budget session of the parliament, a day ahead of presenting the Union Budget 2020.
The Economic Survey of India is a document detailing the economic performance of the country over one year.
The survey was prepared by the team headed by the Chief Economic Advisor in the Ministry of Finance, Krishna Subramanian.
At a time when the economy of the country has taken a hit, the survey takes stock of the economy in the current situation and prescribes remedies in order to achieve the desired goal of $5 trillion goals by 2025.
The theme of the Economic Survey this year is wealth creation.
There are tentative signs of bottoming out of a slowdown in manufacturing activity and global trade, which will have a positive impact on growth in the next fiscal, the survey said.
Speaking to reporters, Subramanian said, "We have a slowdown in the Indian economy, part of it is because of the global economy slowing down in 2019."
Here are the key highlights of the Economic Survey:
1. GDP growth pegged at 6-6.5 per cent in fiscal year starting April 1, up from 5 per cent in current fiscal.
2. Fiscal deficit target for current fiscal may need to be relaxed to revive growth.
3. Uptick in growth projected in second half of current fiscal based on 10 factors including higher FDI flows, build up of demand pressure, positive GST revenue growth.
4. Survey asks government to deliver expeditiously on reforms to revive growth.
5. Ethical wealth creation key to India becoming $5 trillion economy by 2025.
6. Share of formal employment increased from 17.9 per cent in 2011 -12 to 22.8 per cent in 2017-18 reflecting formalisation in the economy.
7. The theme of Survey is wealth creation, promotion of pro-business policies, strengthening of trust in the economy.
8. To achieve GDP of USD 5 trillion by 2024-25, India needs to spend about USD 1.4 trillion over these years on infrastructure.
9. 2.62 crore new jobs created in rural, urban areas between 2011-12 and 2017-18 among regular wage/salaried employees.
10. 8 per cent increase in regular employment of women in 2017-18 over 2011-12.
11. Excessive government intervention in markets, especially when the market can do the job of enhancing citizens welfare perfectly well, stifles economic freedom.
12. Debt waivers disrupt the credit culture, reduces formal credit to same farmers.
13. Suggests the government to systematically examine areas where it needlessly intervenes and undermines markets.
14. Calls for improving governance in public sector banks, more disclosures to build trust.
15 Calls for measures to make it easier to start new business, register property, pay taxes, enforce contracts.
16. Easing of crude prices lowers current account deficit; imports contract more sharply than exports in first half of current fiscal.
17. Declining inflation from 3.2 per cent in April 2019 to 2.6 per cent in December 2019, reflecting weakening demand pressure in the economy.
18. GST collections grew by 4.1 per cent for the centre during April-November 2019.
