Economic Survey 2020 India: Ahead of Union Budget 2020, Finance Minister Nirmala Sitharaman today presented the Economic Survey in the parliament where it is estimated that the country’s GDP will grow at 6-6.5 per cent in the next fiscal year FY21. It also said that the next fiscal year is expected to pose challenges to the economy on the fiscal front. The new economic survey has also suggested that a cut in the capital expenditure by govt may adversely hurt growth and thus it must focus on trimming non-committed revenue expenditure.
In the first advance estimates released earlier this month, the government had expected India’s GDP to grow at 5 per cent. The revised estimate was on the back of continuously falling growth for the last six quarters, mainly driven by a prolonged slowdown. The country’s GDP recorded a growth of a mere 4.5 per cent in the second quarter of the current fiscal year, after clocking 5% growth in the first quarter. The fall in GDP growth is also coupled with subdued factory output which has contracted for three consecutive months before marginally expanding in November.
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While the US-China trade war and instability in the European market have disturbed the global economy and thus India is no exception, the domestic market of the country has majorly affected the overall economic growth. While the Narendra Modi-led government has set an ambitious goal of making India a USD 5 trillion economy by 2024, the current slowdown may pull down the average growth, making it difficult to maintain the pace in the near future as well. A recent report by the industry body FICCI also said that it can take another two to six quarters for the Indian economy to completely get back on track.
Source: Financial Express
