By Shuriah Niazi
NEW DELHI (AA) - Indian government on Thursday projected economy to grow at 7% during the current financial year 2019-20 from 6.8% in previous fiscal year.
"Real Gross Domestic Product (GDP) growth for the year 2019-20 is projected at 7 per cent reflecting a recovery in the economy after a deceleration in the growth momentum throughout 2018-19,” Finance Minister Nirmala Sitharaman said, while presenting the Economic Survey in the upper house of the parliament.
The Finance Ministry presents the Economic Survey in the parliament every year a day before the national budget. The survey projects the state of health of the Indian economy and outlines the challenges.
According to the Economic Survey, India will have to face a challenge on the fiscal front because of economic slowdown.
The survey projected that India needs to grow at 8 percent per annum to become a $5 trillion economy by the financial year 2025.
Chief Economic Adviser Krishnamurthy Subramanian, who prepared the Economic Survey, said the theme of report is to enable shifting gears to accelerate and sustain a real GDP growth rate of 8 percent and thereby achieve the vision of making India a $5 trillion economy, according to local financial daily Livemint.
According to Livemint, the Economic Survey said India continues to be the fastest growing major economy in the world, even though the world output growth falling to 3.6% in 2018 from 3.8% in 2017.
“Growth rate of world output is projected to fall further to 3.3% in 2019 as growth of both advanced and emerging and developing economies are expected to decline," it said.
According to the Economic Survey, lower global growth and increased uncertainty over trade tension may hit exports, while lower global oil prices to boost consumption.
The real challenge for Indian industries is to bring in needed private investment in collaboration with the public Sector, it added.
Meanwhile, Economist Aditya Jain of Kalptaru Multipliers said, “The GDP growth of 7 percent projected by the Economic Survey is very much realistic. However, we need a boost to revive the economy. Sufficient actions are needed on monetary front to improve the economy.”
Rajiv Kumar, vice chairman of NITI Aayog, a policy think tank of the India government, has hailed the Economic Survey 2019 as government’s resolve to maintain fiscal stability while pushing up the GDP growth rate.
“The Economic Survey 2019 reflects the government’s resolve to maintain fiscal stability while pushing up GDP growth rates by measures to accelerate private investment. It provides a comprehensive and clear picture of economic trends and challenges ahead,” Kumar said.