Economic Survey outlines strategy to achieve $5 trillion economy, says PM Modi
In a social media post, PM Modi said that the Economic Survey, tabled in Parliament today, highlights the government's strategy to achieve $5 trillion economy.
Prime Minister Narendra Modi on Friday said that the Economic Survey 2019-20, presented by Finance Minister Nirmala Sitharaman in the Parliament, focused on wealth-creation for 130 crore Indians. "It outlines a multi-faceted strategy to achieve a $5 trillion economy through enterprise, exports, ease of doing business and more," PM Modi as said as he encouraged people to give it a read.
The Economic Survey on Friday projected revival of economic growth to 6-6.5 per cent in the next fiscal beginning April 1 but suggested the government to relax the budget deficit target to boost growth from a decade low.
The Survey, released a day before Finance Minister Nirmala Sitharaman presents the Union Budget for 2020-21, called for cutting food subsidy while at the same time looking at businessmen with respect as they create wealth and jobs.
For the current fiscal, it projected a GDP growth of 5 per cent, the lowest in 11 years, and worsening job prospects.
"The deceleration in GDP growth can be understood within the framework of a slowing cycle of growth with the financial sector acting as a drag on the real sector," it said. "The government must use its strong mandate to deliver expeditiously on reforms, which will enable the economy to strongly rebound in 2020-21."
It emphasized on raising capital expenditure (and reducing revenue expenditure) that leads to asset creation.
This means economic growth, which primarily is driven by consumer spending, has to now come from greater investments. The Survey emphasized on investment-led growth by focusing on reviving the MSME sector.
To further make it easier to do business, it suggested removing the red tape at ports to promote exports as well as measures to make it easier to start a business, register property, pay taxes and enforcing contracts.
It also called for improving governance in public sector banks and the need for more disclosure of information to build trust. It also talks about dwarfism in the banking sector.
Listing global trade tensions and oil prices rising from an escalation in US-Iran standoff as downside risks to growth, it said GDP growth of India should strongly rebound in 2020-21 on a low statistical base of 5 per cent growth in 2019-20.
"On a net assessment of both the downside/upside risks, India's GDP is expected to grow in the range of 6.0 to 6.5 per cent in 2020-21," it said.
In his tweets, Prime Minister Narendra Modi also said that President Ram Nath Kovind "lucidly highlighted India’s successes in a wide range of sectors as well as how the fruits of development are transforming the lives of 130 crore Indians".
"In his speech to both Houses of Parliament, Rashtrapati Ji lucidly highlighted India’s successes in a wide range of sectors as well as how the fruits of development are transforming the lives of 130 crore Indians.
"Rashtrapati Ji also highlighted India’s rising stature at the world stage, how our nation has overcome challenges pending for decades and India’s ethos of harmony, brotherhood as well as compassion, PM Modi said on the social media platform.