Economic Survey 2018-19

Overview of Economic Survey

On 4th July 2019 Smt. Nirmala Sitaraman Union miniter for finance tabled the Economic Survey 2018-19 in the parliament.

Shifting gears: Private investment at the center of Growth, Jobs, Export & Demand.

Target to sustain 8% GDP growth rate to achieved a $5 trillion economy(current is $2.71 Trillion) by 2024-25.
Presenting data as public good.
Focusing on legal reforms
To sustain consistency in policies.
Nourishing MSME to producing more jobs and increasing productivity.
Taking seriously to minimizing cost of capital.

Nourishing MSME's to becomes Giants

Reorienting policies for MSME growth.
Achieving greater profits, job creation and increasing overall productivity
Deregulating labor laws restrictions.
Re-calibrating Priority Sector Lending (PSL) guidelines for direct credit flow.

Reforms in judiciary

Delays in contract enforcement and disposal resolution are arguably now the single biggest hurdle to the ease of doing business and higher GDP growth in India.

Policy Uncertainty affect Investment

Significant reduction in Economic Policy Uncertainty in India over the last one decade
Uncertainty dampens investment growth in India for about five quarters

Enabling Inclusive Growth through Affordable, Reliable and Sustainable Energy

India now stands at 4th in wind power, 5th in solar power and 5th in renewable power installed capacity.
Thermal power still plays a dominant role at 60% share.
Market share of electric cars only 0.06% in India while it is 2% in China and 39% in Norway.
Access to fast battery charging facilities needed to increase the market share of electric vehicles.

Money Management and Financial Inter-mediation

Banking system improved as NPA ratios declined and credit growth accelerated.
Insolvency and Bankruptcy Code led to recovery and resolution of significant amount of distressed assets and improved business culture.
Financial flows remained constrained because of decline in the equity finance raised from capital markets and stress in the NBFC sector.
Credit growth rate y-o-y of the NBFCs declined from 30 per cent in March 2018 to 9 per cent in March 2019

Agriculture and Food Management

89% of groundwater extracted is used for irrigation.
Focus should shift from land productivity to ‘irrigation water productivity’.
Thrust should be on micro-irrigation to improve water use efficiency.
Fertilizer response ratio has been declining over time.
Dairying as India is the largest producer of milk.
Fisheries sector, as India is the second largest producer.

Mayur Vasant Jagtap

(Image source- PIB India)

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