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July 04, 2019

Economic Survey 2019 Highlights - PDF Download

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Ahead of Union Budget 2019, the Department of Economic Affairs of the Finance Ministry today presented the Economic Survey 2019 for the last fiscal year in parliament which projects the state of health of Indian Economy and outlines the challenges.

The survey was prepared by Krishnamurthy Subramanian (Chief Economic Adviser). It reviews the development in the economy over the past 12 months. It projected GDP (gross domestic product) growth at 7% for the financial year 2019-20.

The survey was presented in Sky Blue Cover. The Chief Economic Adviser Krishnamurthy Subramanian said that team for Economic Survey 2018-19 was guided by "blue sky thinking", thus the sky blue over. "The Survey adopts an unfettered approach in thinking about the appropriate economic model for India. This is reflected in sky blue cover," he added.
The Economic Survey highlighted 5 key drivers of investment, savings, exports, growth and jobs as the primary engines to drive Indian economy.

Theme of the Economic Survey 2019 : To enable Shifting Gears to accelerate and sustain a real GDP growth rate of 8% and thereby achieve the vision of $5 trillion economy. 

The Survey serves as the official economic report of the country. Let's have a look at the key highlights of economic survey 2019. You can download PDF Version of the highlights from the link given below.

Major Highlights of Indian Economic Survey 2019

  • The Economic Survey 2019 sees FY20 GDP growth at 7%, higher growth on stables macros.
  • India needs to grow at 8% per year to be $5 trillion economy by FY25.
  • Looking beyond the economics of equilibrium, survey makes case for investment-driven “virtuous cycle” to sustain growth at 8%.
  • Investment the "key driver" of simultaneous growth in demand, jobs, exports & productivity
  • Green shoots in investment activity seems to taking hold.
  • Rural wage growth started increasing since mid-2018.
  • Political stability should push the animal spirits of economy.
  • One of the biggest hurdles to the economy is poor enforcement of contracts and dispute resolution. Steps to speed up legal process should be top priority.
  • Savings & growth are positively co-related. Savings must increase more than investment.
  • Tactical tools for constant recalibration based on real time data. Data must be created as a public good “of the people, by the people, for the people.
  • Real people respond to context rather than narrow “rational” calculations. Survey argues that nudging behaviour change is simplest way to change gender equations, business culture, sanitation culture, health culture and so on.
  • Top policymakers must ensure actions are predictable. In an unpredictable world, policymaking needs :
    • Clear Vision
    • Strategic blueprint 
    • Tactical tools for constant recalibration
  • Indian MSMEs need to be freed from shackles that convert them into dwarfs. MSMEs need to be seen as a source of innovation, growth and job creation.
  • The Survey is inspired by Gandhiji's Talisman: “…Recall the face of the poorest man [woman], and ask yourself, if the step you contemplate is going to be of any use to him [her]
  • Investment rate seems to have bottomed out.
  • Govt stands by the fiscal consolidation path.
  • Jan-March economic slowdown due to poll related related activity.
  • Greenshoots in investment seems to be taking hold.
  • NBFC stress reason for FY19 slowdown.
  • Decline in NPAs should push up CAPEX cycle.
  • General fiscal deficit seen at 5.8% in FY19 VS 6.4% in FY18.
  • Investment rate seen higher in FY20 on improved demand.
  • Oil prices seen declining in FY20.
  • Accomodative MPC policy to help cut real lending rates.
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