Economic Survey 2019 Highlights
Nirmala Sitharaman, the Finance Minister will present the Full Budget on July 5, 2019. Every year the Economic Survey is tabled a day before the Budget. #EconomicSurvey summarizes the wholesome state of the economy and finance in the country. This survey enables the government to take key decisions which power up growth of the economy as well as put the nation on the fast track.
The Economic survey triggers some key data points for the government such as the Fiscal Deficit, GDP, GDP Growth Forecast, Rural and Urban wages, economic reforms, global growth, trades, Investments, imports, exports etc.
The key highlights of #EcoSurvey2019 compiled by Stock Book Team are mentioned below:
- India needs to grow at 8% per year to be $5 trillion economy by FY25
- Farmers have produced less in FY19 on food price fall
- Rural wage growth started increasing since Mid 2018
- Jan-March slowdown partly due to poll related uncertainty
- GDP Growth averaged at a high of 7.5% in last 5 years
- Oil prices seen declining in FY20 in current levels.
- Decline in NPAs should help push capex cycles
- Accommodative MPC Policy to help cut real lending rates
- Green shoots in investment activity seems to be talking hold
- General Fiscal Deficit seen at 5.8% in FY19 versus 6.4% in FY18
- FY20 GDP Growth estimated at 7%
- Huge Political Mandate augurs well for growth prospects
- Structural Reforms of last few years continuing course
- Investment rate seems to have bottomed out
- Investment Rate seem higher in FY20 on higher credit growth
- Lower Global Growth, Increased Uncertainty over Trade Tension may hit exports
- Slow Growth, GST, Farm Schemes to Post Challenges on Fiscal Front
- Govt policy expected to further lift restrictions on FPI Inflows
- Liquidity systematically tight since September 2018, impacting yields
- There could be upward pressure on crude prices as global growth grows
- Aggressive export strategy must be a part of investment driven model
- Rebound in consumption is tied to a recovery in farm sector growth, which in turn depends on rainfall
- The other downside risks include weaker exports growth and a spill over of stress in shadow banking sector to this year
- Some regions are expected to receive less than normal rain
- On balance, the prospects of economy should improve
- Top Policy makers must ensure that actions are predictable
- US’s Iran sanction for oil import may have impact on oil prices
- Rural Wages seems to have bottomed out
- Government proposes to increase the retirement age
Source : Twitter Handles of CNBC TV-18, BLOOMBERG QUINT & ET NOW
Now lets see how the #UnionBudget2019 unfolds for India.
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