Finance Minister Nirmala Sitharaman today tabled the Economic Survey 2018-19 in the Rajya Sabha. As the flagship document of the finance ministry, the Economic Survey, prepared by Chief Economic Adviser Krishnamurthy Subramanian, highlights the challenges that the economy might face in its pursuit to become the world's fifth largest economy. It is also details reforms roadmap needed to fulfil Prime Minister Narendra Modi's goal of more than doubling the size of the economy to USD 5 trillion by 2024. The survey comes a day ahead of Finance Minister Nirmala Sitharaman presents the first budget of the Modi 2.0 government.
The Economic Survey, the annual report of the Indian economy for the year gone by (2018-19), also comes at a time when some critics have said that the Modi government in its first term delivered a jobless growth and it needed to re-invent to propel the economy and create jobs.
Here are the highlights on the 2019 Economic Survey:
India's economic growth will rebound from a five-year low this year, but would need a huge boost in spending and reforms to accelerate higher rate of expansion to double the economy's size to USD 5 trillion by 2024-25, the pre-Budget Economic Survey said.
Mr Kejriwal, however, feared a "slowdown" in the economy.
"Economic Survey presented in the Parliament today signals towards worrying signs for our economy. GDP growth rate is virtually stagnant and all indicators point that we are in a slowdown," he tweeted.
Economic Survey presented in the Parliament today signals towards worrying signs for our economy.- Arvind Kejriwal (@ArvindKejriwal) July 4, 2019
GDP growth rate is virtually stagnant and all indicators point that we are in a slowdown.
From the highest level of economic policy uncertainty in 2011-12, India has made leap into the era of high economic policy certainty. The Graph of Indian growth story is on an upward trajectory. #EconomicSurvey2019- Arun Jaitley (@arunjaitley) July 4, 2019
Although the country as a whole will enjoy the ''demographic dividend'' phase, some states will start transitioning to an ageing society by the 2030s, as per the Economic Survey 2018-19, presented in parliament by Finance Minister Nirmala Sitharaman.
"It will surprise many readers to learn that population in the 0-19 age bracket has already peaked due to sharp declines in total fertility rates (TFR) across the country," it said.
At present, TFR of 2.1 children per woman is called the replacement level fertility, which is the average number of children a woman would need to have in order for the population to replace itself.
The southern states, Himachal Pradesh, Punjab, West Bengal and Maharashtra now have fertility rates well below the replacement rate.
TFR in Bihar, Uttar Pradesh, Jharkhand, Chhattisgarh, Rajasthan and Madhya Pradesh are above the replacement rate but are also experiencing significant declines, reported PTI.
"The age distribution, however, implies that India''s working-age population will grow by roughly 9.7 mn per year during 2021-31 and 4.2mn per year in 2031-41," it said.
The Left leader also said the survey "whitewashes" the "terrible" economic record of the last five years and hit out at the government over the resignation of top RBI officials.
The pre-Budget Economic Survey said India's economic growth will rebound from a five-year low this year, but would need a huge boost in spending and reforms to accelerate higher rate of expansion to double the economy's size to USD 5 trillion by 2024-25.
"The Economic Survey is full of bombastic claims and grandiose declarations without any basis in facts. Any growth strategy based on private investment will be a non-starter; economic growth needs more purchasing power amongst people, not more investment with higher unemployment," Mr Yechury tweeted.
The survey "glosses over the major challenges faced by millions of Indians and whitewashes the terrible economic record of past five years", he said.
The Economic Survey 2018-19 has stressed the need for reducing economic policy uncertainty in the country to promote investment and has recommended the predictability of policies, quarterly monitoring of Economic Policy Uncertainty (EPU) index and quality certification.