Indian economy has hit ‘a trough’, hope to achieve 6-6.5% in 2020-’21, says chief economic advisor

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The chief economic advisor pointed out that firms that had borrowed a lot of funds between 2008 and 2012 had invested less during the 2013-’17 period.

Chief Economic Advisor KV Subramanian on Friday said the Indian economy had hit “a trough” or a low point in terms of economic growth but expressed hope of achieving the targeted Gross Domestic Product growth in the 2020-’21 financial year.

Finance Minister Nirmala Sitharaman tabled the Economic Survey for 2020-’21 in the Parliament on Friday afternoon. The survey predicted that Gross Domestic Product will grow between 6% and 6.5% during the next financial year. It also projected industrial growth at 2.5% but added that there was a chance of a widening of the fiscal deficit.

“Peaks and troughs in business cycle phenomena show that we have hit a trough as regards economic growth, hopeful of achieving 6.0%-6.5% GDP growth in 2020-21,” Subramanian said at a press conference. The chief economic advisor pointed out that firms that had borrowed a lot of funds between 2008 and 2012 had invested less during the 2013-’17 period. He said the theme for the Economic Survey for the 2020-’21 financial year was wealth creation.