Mumbai: India continued as the fastest growing economy at 6.8% in 2018-19 and is expected to grow at 7% in 2019-20, the Economic Survey 2018-19 tabled in parliament on July 4, 2019, said. The average growth in the last five years (since 2014-15) has been 7.5% in terms of real gross domestic product (GDP).
The economic survey outlined India’s vision of becoming a $5 trillion economy by 2024-25. To meet this objective, India will need to sustain a real GDP growth rate of 8%, which can be achieved by creating a “virtuous cycle” driven by savings, investment and exports, supported by favourable demographics, the survey said. It emphasises on private investment as the key driver.
The survey also talks about using: data as a public good, behavioural economics to foster economic growth, affordable and sustainable energy for inclusive growth and technology for welfare schemes.
Here are the highlights from the economic survey 2018-19:
#India continued as the fastest growing economy at 6.8% in 2018-19 despite “moderation” from 7.2% in 2017-18: #EconomicSurvey2019. The real GDP growth for 2019-20 is projected at 7%. Follow this thread for insights from #EcoSurvey2019 pic.twitter.com/jq3rs4Vdoa — IndiaSpend (@IndiaSpend) July 4, 2019
Moderation in growth is attributed to lower growth in agriculture & allied, trade, hotel, transport, storage, communication and services related to broadcasting and public administration & defence sectors: #EconomicSurvey2019 — IndiaSpend (@IndiaSpend) July 4, 2019
Gross Value Added at basic prices saw a decline in economic activity at 6.6% in 2018-19, from 6.9% in 2017-18. Agriculture, forestry & fishing, & Services saw a decline, while Industry showed improvement over the previous year. #EconomicSurvey2019 pic.twitter.com/HVCyZnXbnC — IndiaSpend (@IndiaSpend) July 4, 2019
Agriculture, forestry & fishing sector reported real growth at 2.9% in 2018-19, down from 5% in 2017-18 and 6.3% in 2016-17. “Share of the agriculture sector in total GVA has been consistently falling and now stands at 16.1% in 2018-19:” #EconomicSurvey2019 — IndiaSpend (@IndiaSpend) July 4, 2019
Growth in Industry jumped to 6.9% in 2018-19 from 5.9% in 2017-18, on the basis of improving manufacturing & construction activity. Manufacturing recorded 6.9% growth, up from 5.9%; construction accelerated to 8.7% from 5.6%: #EconomicSurvey2019 — IndiaSpend (@IndiaSpend) July 4, 2019
Service sector growth fell from 8.1% in 2017-18 to 7.5% in 2018-19, due to decline in growth in ‘Public admin, defence & other services’ & ‘Trade, hotel & transport’ sector. Service sector continues to be the major contributor (share of 54%) to the growth of Indian economy. — IndiaSpend (@IndiaSpend) July 4, 2019
“The average growth rate of India was not only higher than China’s during 2014-15 to 2017-18 but much higher than that of other top major economies (measured in terms of GDP at current US$ terms) as well,” the #EconomicSurvey2019 states. — IndiaSpend (@IndiaSpend) July 4, 2019
Current account deficit (on external front) rose from 1.9% of GDP in 2017-18 to 2.6% in Apr-Dec 2018. This was due to high trade deficit driven by rise in int’l crude oil prices. Trade deficit up nearly 14% from $162 billion in 2017-18 to $184 billion in 2018-19. — IndiaSpend (@IndiaSpend) July 4, 2019
Fiscal deficit of central govt reported at 3.4% of GDP in 2018-19, down from 3.5% in the previous year. #EconomicSurvey2019 — IndiaSpend (@IndiaSpend) July 4, 2019
Consumer Price Index inflation down from 3.6% in 2017-18 to 3.4% in 2018-19. Wholesale Price Index (WPI) inflation up to 4.3% from 3%. “Increase in WPI inflation was broad-based, which saw increase in inflation of all the groups except food in 2018-19.” — IndiaSpend (@IndiaSpend) July 4, 2019
Non-performing assets as % of Gross Advances (loans) of Scheduled Commercial Banks fell from 11.5% to 10.1% between Mar-Dec 2018. For Public Sector Banks, it decreased from 15.5% to 13.9% over the same period. #EconomicSurvey2019 — IndiaSpend (@IndiaSpend) July 4, 2019
Govt spending (Centre + states) on #health increased to 1.5% of GDP in 2018-19 from 1.2% in 2014-15. On #education, it increased to 3% of GDP from 2.8%; Overall, India spent 7.3% of GDP on #SocialServices, up from 6.2% over the same period. #EconomicSurvey2019 — IndiaSpend (@IndiaSpend) July 4, 2019
(Mallapur is a senior analyst with IndiaSpend.)
Source: India Spend
Image Courtesy:Zee
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