Ahead of Union Budget 2019, Finance Minister Nirmala Sitharaman on Thursday tabled an economic survey in Parliament, projecting the state of health of the country's economy and outlining the challenges. According to the survey, India’s Gross Domestic Product (GDP) is projected to clock 7 per cent growth rate in the financial year 2019-20.
Investment rate is expected to pick up further in the year 2019-20 on the back of higher credit growth, said the Economic Survey. The investment rate was declining from 2011-12. The survey makes the case for investment as a key driver and focus on SMEs will be the key.
According to the survey, India is set to witness a sharp slowdown in population growth in the next two decades. Although the country as a whole will enjoy the “demographic dividend” phase, some states will start transitioning to an ageing society by the 2030s.
Prepared by Chief Economic Adviser Krishnamurthy Subramanian, the Economic Survey projected India's real GDP growth for the year 2019-20 at 7 per cent, reflecting a recovery in the economy after a deceleration in the growth momentum throughout 2018-19.
Economic Survey 2019 projects 283.4 million tons of food grains production for 2018-19 and 2.9 percent growth rate for the agriculture, forestry and fishing sectors.