Budget 2020 LIVE Updates: The Economic Survey today projected India’s economic growth at 6 per cent to 6.5 per cent in the next financial year starting April 1, saying growth has bottomed out. The growth in 2020-21 compares to a projected 5 per cent expansion in 2019-20.
Weak global growth impacting India as well as investment slowdown due to financial sector issues had led to growth dropping to a decade low in current fiscal, it said, adding 5 per cent growth projected for 2019-20 is the lowest it could fall for now.
Growth slipped to 4.5 per cent in the July-September quarter.
The Survey this year has been printed in lavender colour — the same as the colour of the new Rs 100 currency note, the oldest currency note in circulation in the country.
The pre-Budget Survey said for wealth to be distributed, it first has to be created and called for looking at wealth creators with respect. The survey said government interventions seem to be ineffective in stabilising prices of commodities such as onions.
For boosting growth, it called for new ideas for manufacturing such as ‘assemble in India for the world’ which will create jobs.
To further make it easier to do business, the Survey called for removing the red tape at ports to promote exports as well as measures for easing the start of 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.
Economic Survey advocates 10 new ideas that benefit markets as well as the economy.
Earlier, President Ram Nath Kovind’s address to the joint session of Parliament a day before the tabling of the budget witnessed ruckus as the President hailed the citizenship amendment act and sought support for the contentious legislation. Slogans of ‘shame’ were raised by the Opposition when Kovind said CAA was good for persecuted minorities and added: “Support CAA if you believe in the idea of India.”
At 12pm, Finance Minister Nirmala Sitharaman will table the Economic Survey. After the Economic Survey, CEA Dr Krishnamurthy V Subramanian will address a press conference at 1.45pm.
The crushing slowdown may finally release its grip as the Economic Survey, which will be tabled in Parliament on Friday, predicts India’s growth rate in the range of 6-6.5 percent in Financial Year 2021.
For the current year, the survey forecasts India’s gross domestic product (GDP) to grow at five per cent — the slowest pace in 11 years — against the earlier estimate of 7 per cent in July 2019, CNBC-TV18 quoted people familiar with the matter as saying.
The document, which maps the state of India’s economy and is prepared by a team of economists based in India’s finance ministry, believes that the downward slide in the country’s GDP has bottomed out. The overarching theme in this year’s economic survey is “Wealth Creation” and spells out 10 new ideas to achieve this, they said.
Annual economic growth slowed to 4.5 per cent in the July-September quarter, the weakest pace since 2013, owing to weakening demand and private investment. Earlier this month, the ministry of statistics said in a statement that GDP is estimated to grow 5.0 percent in 2019-20, slower than the 6.8 percent growth of 2018-19.
Slowing growth has put pressure on the government to expedite reforms as five rate cuts by Reserve Bank of India have hardly helped. It will also likely push finance minister Nirmala Sitharaman to go for extra fiscal stimulus when she presents the annual budget on Saturday.
Read all the Latest News , Breaking News , watch Top Videos and Live TV here.
Comments
0 comment