Mumbai: On Thursday, the government imposed a GDP growth estimate of 7% for 2019-20, at the lower level of 6.8% at the bottom of the five-year low, in an anticipated pick-up in investment and consumption.
According to Economic Survey 2018-19 introduced by Finance Minister Nirmala Sitharaman in Parliament, despite being a modest increase from its GDP, India remained the fastest growing major economy in 2018-19 in 2017-18 in 7.2 6.8 per cent in per cent and 2018-19.
“India’s real GDP growth has been more than the average growth of 7.5 per cent in the last five years (2014-15). In 2018-19, the economy grew at 6.8 per cent, which led to some decline in the previous comparison,” it said.
This moderation in the speed of development is primarily due to lower growth in the services related to the transmission of agriculture, trade, transport communication and broadcast among others. During the last five years, India’s economy has performed well, he said that the government has ensured that the benefits of development and macroeconomic stability reached many parts of the pyramid by opening several ways to trickle down.
“To achieve the objective of becoming a USD 5-trillion economy by 2024-25, as laid down by the Prime Minister, India needs to sustain a real GDP growth rate of 8 per cent,” it said.
“The economy is expected to increase in 2019-20 because the macroeconomic situation remains steady, whereas the structural improvements started in the last few years are definitely going on. However, both the negative side and risk are likely to be in 2019-20 “It said.
Meanwhile, the survey retained the fiscal deficit for the current fiscal at 3.4 per cent of GDP, which was anticipated in the revised estimate of the interim budget 2019-20.
The current account deficit (CAD) in the economy increased from 1.9 per cent of GDP in 2017-18 to 2.6 per cent in April-December 2018.
“The expansion of CAD was largely due to a high trade deficit driven by the rise in international crude oil prices (Indian baskets). The trade deficit in 2017-18 increased from $ 162.1 billion to $ 184 billion in 2018-19, What was said.
However, the general fiscal deficit – centre and states combined – has been pegged at 5.8 per cent in 2018-19, down from 6.4 per cent in the previous fiscal.
(With PTI Inputs)
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