Prime Minister Narendra Modi today tweeted the government's roadmap on how to take India to a $5 trillion economy, after the Economic Survey 2018-19 was presented to parliament by Finance Minister Nirmala Sitharaman.
"The #EconomicSurvey2019 outlines a vision to achieve a $5 Trillion economy. It also depicts the gains from advancement in the social sector, adoption of technology and energy security. Do read!" PM Modi tweeted, along with a link to the document on the Finance Ministry's website.
The government said economic growth in fiscal 2020 could rise to 7 per cent from 6.8 per cent for the year that ended on March 31, which was the slowest in five years.
"The growth in the economy is expected to pick in 2019-20 as macroeconomic conditions continue to be stable," said Chief Economic Adviser Krishnamurthy Subramanian, the report's main author.
The survey, an annual report on the health of the economy, was released a day before Ms Sitharaman presents the Union Budget.
But for India to become a $5 trillion economy - more than double the current size by 2024-25 - it needs to sustain a real Gross Domestic Product (GDP) growth rate of 8 per cent, which international experience suggests is possible only through a sustained "virtuous cycle" of savings, investment and exports.
"The political stability in the country should push the animal spirits of the economy, while the higher capacity utilisation and an uptick in business expectations should increase investment activity in 2019-20," the survey said.
The document also compares the situation on several social and industry sectors before the Modi government launched programmes for those areas - such as from basic initiatives like sanitation and cooking gas to more complex sectors like manufacturing.
"As a result of the efforts of the Government, as on date, 98.9 per cent of India has been covered under SBM (Swachh Bharat Mission)," the Economic Survey said.
The Modi government is expected to push up spending to spur economic growth through tax incentives to boost consumer demand and investment.
A shortfall in monsoon rain - important for the agriculture sector that forms 15 per cent of the economy and employs nearly half of India's workers - has raised concerns about rural distress and strengthened the case for government intervention.
This was the first Economic Survey of the NDA government after it won a second term with a landslide victory in the national election held in April and May.