The Economic Survey on Friday 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. It also predicts that headline inflation is expected to decline by year end.
The growth in 2020-21 compares to a projected 5 per cent expansion in 2019-20. "The deceleration in GDP growth can be understood within the framework of a slowing cycle of growth with the financial sector acting as a drag on the real sector," it said. "The government must use its strong mandate to deliver expeditiously on reforms, which will enable the economy to strongly rebound in 2020-21," it said.
The two-volume Survey this year has been printed in lavender colour—the same as the colour of the new 100 rupee 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.
The survey notes that "post-liberalisation, Indian economy supports both pillars of the economic model advocated in our traditional thinking.
Survey illustrates enormous benefits accruing from enabling the invisible hand of the market.... The survey shows that the liberalized sectors grew significantly faster than the closed ones," it states.
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.
The economic survey suggests announcing a National Infrastructure Pipeline for 2019-2025. It adds that the expenditure on social services (health, education and others) by the Centre and States as a proportion of GDP increased from 6.2 per cent in 2014-15 to 7.7 per cent in 2019-20 (budget estimates).
(With PTI inputs)
