The government Thursday projected the country’s GDP growth for 2019-20 at 7 per cent, up from five-year low of 6.8 per cent, on the back of anticipated pickup in investment and consumption.
According to the Economic Survey 2018-19, tabled by FinanceMinister Nirmala Sitharaman in Parliament, India continues to remain thefastest-growing major economy in the world in 2018-19, despite a slightmoderation in its gross domestic product (GDP) growth from 7.2 per cent in2017-18 to 6.8 per cent in 2018-19.
“India’s growth of real GDP has been high with averagegrowth of 7.5 per cent in last fiveyears (2014-15 onwards). The economy grew at 6.8 per cent in 2018-19, therebyexperiencing some moderation in growth when compared to the previous year,”it said.
This moderation in growth momentum is mainly on account oflower growth in agriculture, trade, transport communication and servicesrelated to broadcasting among others, it said.
During the last five years, India’s economy has performedwell, it said, adding that the government has ensured that the benefits ofgrowth and macroeconomic stability reach the bottom of the pyramid by openingup several pathways for trickle-down.
“To achieve the objective of becoming a USD 5-trillioneconomy by 2024-25, as laid down by the Prime Minister, India needs to sustaina real GDP growth rate of 8 per cent,” it said.
As per the survey, GDP growth for the year 2019-20 isprojected at 7 per cent, reflecting a recovery in the economy after adeceleration in the growth momentum throughout 2018-19.
“The growth in the economy is expected to pick up in 2019-20 as macroeconomic conditions continue to be stable while structural reforms initiated in the previous few years are continuing on course. However, both downside risks and upside prospects persist in 2019-20,” it said.
HIGHLIGHTS
* Sustained8 pc growth needed to become a USD 5-trillion economy by 2024-25
* Hugepolitical mandate augurs well for growth prospects
* Greenshoots in investment, visible pick-up in credit growth seen
* Crude oilprices to decline in 2019-20, to push consumption
* Foreignexchange reserves at USD 422.2 billionin June 2019
* Low payand wage inequality remain serious obstacles towards achieving inclusivegrowth.