Nirmala Sitharaman, Union Finance Minister, tabled the economic survey for the year 2018-19 before the Lok Sabha on Thursday.
According to the survey prepared by Chief Economic Advisor, Krishnamurthy Subramanian, the Indian economy is at a 5-year low of 6.8% in 2018-19 and the fourth quarter growth has slumped to 5.8% which is a 17-quarter low.
The survey said services sector growth declined marginally to 7.5 per cent in 2018-19 from 8.1 per cent in 2017-18. Financial services, real estate and professional services were the accelerated sub-sectors and decelerated sub-sectors include Hotels, transport, communication and broadcasting services.
The minister said the Economic Survey lays down the strategic blueprint for fructifying the Prime Minister Narendra Modi’s vision of India becoming a $5 trillion economy by 2025.
The theme of the Survey is about enabling a “shifting of gears” to sustained economic growth for the objective of US $5 trillion by 2024-25. To achieve the vision of a 5 trillion economy, India needs to shift its gears to accelerate and sustain a real GDP growth rate of 8%.
The Survey departs from traditional thinking by viewing the economy as being either in a virtuous or a vicious cycle and thus never in equilibrium.
Prime Minister Narendra Modi said the Economic Survey 2019 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,” PM Modi tweeted.
We will be sticking to the fiscal path which has been laid out; if the private investment has to increase, it cannot be allowed to be crowded out by public investment, said CEA Subramanian.
Bibek Debroy, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), welcomed the Economic Survey’s emphasis on fiscal consolidation and fiscal discipline and investments, especially private investments, as the growth driver.
Rajiv Kumar, Vice Chairman, NITI Aayog said the Economic Survey reflects the government’s resolve to maintain fiscal stability while pushing up GDP growth rates by measures to accelerate private investment. He said the report provides a comprehensive and clear picture of economic trends & challenges ahead.