Economic Survey 2020: GDP Growth Projected At 6-6.5 Per Cent In FY21; Growth Resurgence From Second Half Of FY20Finance Minister Nirmala Sitharaman.

The Economic Survey 2019-20 was tabled by Finance Minister Nirmala Sitharaman in the parliament today (31 January). The survey projects the Indian Economy to grow at a rate of 6 to 6.5 per cent in the upcoming Financial Year 2020-21.

Inflation has declined sharply from 3.2 per cent in April 2019 to 2.6 per cent in December 2019, which as per the survey reflects a weakening demand pressure in the industry.

The survey projects the current fiscal growth to stand at 5 per cent and notes that the fiscal deficit target of 3.3 per cent for FY20 needs to be relaxed to spur growth.

The survey expects growth to strongly rebound in FY21 and added that the resurgence will begin from the second half of the current financial year.

The survey adds that a low tax to GDP ratio has constrained the government’s infrastructure spending and the banks may remain averse in this sector unless the IBC process speeds up.

Tax collections in the current financial year is expected to miss the target and non-taxation revenue is not sustainable year-on-year, notes the survey. The revenue collection will be impacted by how quickly GDP growth recovers.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement