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Economic Survey 2019: GDP growth likely at 7% in FY20, fiscal deficit at 5.8% in FY19

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Economic Survey 2019: GDP growth likely at 7% in FY20, fiscal deficit at 5.8% in FY19

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Economic Survey 2019: Ahead of Modi government's maiden Budget in the second term, an economic survey projecting the state of health of the country's economy and outlining the challenges will be tabled in Parliament at 12 noon on Thursday. The government has estimated gross domestic product growth of 7 percent for the fiscal year 2019-2020.

Economic Survey 2019: GDP growth likely at 7% in FY20, fiscal deficit at 5.8% in FY19
  • While the stabilisation on GST happens there is definitely scope for increasing our non-tax revenues and there is significant emphasis that government is laying on that going forward. Therefore I would anticipate that the projections we are making for the fiscal deficit will continue to be following that glide path towards achieving the fiscal deficit targets and so I do not anticipate any worries on that front because the support from the non-tax revenues will actually take care of this process of stabilisation that we are going on the GST, Subramanian said.

  • In an exclusive interview with CNBC-TV18, Krishnamurthy Subramanian said, the focus that we are making is on encouraging private investment because the vision of India becoming a five trillion dollar economy cannot be achieved without private investment taking off and the emphasis therefore has been on ensuring that. 

  • Eco Survey reflects govt's resolve to maintain fiscal stability:Rajiv Kumar ## Eco Survey reflects govt's resolve to maintain fiscal stability:Rajiv Kumar

    Niti Aayog vice chairman Rajiv Kumar said the Economic Survey reflects the government's resolve to maintain fiscal stability while pushing up economic growth.
    Finance Minister Nirmala Sitharaman tabled the Economic Survey 2018-19 in Parliament on Thursday.Kumar said the Survey provides a comprehensive and clear picture of economic trends and challenges ahead.He said the measures to accelerate investments, especially from the private sector, to give a push to growth are the steps in the right direction. 

  • TMC opposes Aadhaar legislation ## TMC opposes Aadhaar legislation

    The Trinamool Congress on Thursday opposed amendments to the Aadhaar law, saying it lacks transparency and strikes at the very heart of individual privacy. Participating in the debate on The Aadhaar and other Services (Amendment) Bill, 2019 in Lok Sabha, Mahua Moitra said the bill speaks of a regulator which will govern various provisions. She said there are no details of the proposed regulator in the bill, which makes it opaque. She said the regulator should be integrated in the bill itself.

  • Owaisi calls Aadhaar Amendment Bill 'classic example of halala' ## Owaisi calls Aadhaar Amendment Bill 'classic example of halala'

    AIMIM leader Asaduddin Owaisi criticised the Centre over the Aadhaar Amendment Bill. He callled the Bill 'a classic example of halala', which prompted laughter in the Lok Sabha. "The Supreme Court had ended marriage between state and private parties on use of Aadhaar, now this Bill is halala, Supreme Court called it a vice, government making it a virtue," he said. 

  • Sticking to fiscal deficit target important: CEA K V Subramanian ## Sticking to fiscal deficit target important: CEA K V Subramanian

    Chief Economic Adviser K V Subramanian Thursday stressed that the government should stick to the fiscal consolidation path or risk crowding out investment due to large public borrowings.The Economic Survey, tabled in Parliament Thursday, pegged the fiscal deficit for 2018-19 at 3.4 percent of the GDP, the same level as projected in the interim Budget.It is important to stick to fiscal deficit path, otherwise there is risk of crowding out of investment, Subramanian told reporters here.

  • Suggestions of high level group on exports needs to be implemented: Economic Survey ## Suggestions of high level group on exports needs to be implemented: Economic Survey

    The Economic Survey 2018-19 called for implementation of recommendations made by a high level advisory group on boosting the country's exports.The high level panel group, chaired by Surjit Bhalla, has recommended a host of measures and a road map for doubling India's exports of goods and services to over $1,000 billion by 2025.The key suggestions include lowering effective corporate tax rate, bringing down cost of capital and simplifying regulatory and tax framework for foreign investment funds.

  • Need to finally begin to get serious about legal reforms for businesses, says Sanjeev Sanyal

  • Many measures are needed to get the investment cycle going, said Principal Economic Adviser Sanjeev Sanyal to CNBC-TV18. He further said that bringing down cost of capital is good for increasing savings rate.

  • India must spend $200 billion on infra annually; harnessing pvt investment a challenge: Economic Survey ## India must spend $200 billion on infra annually; harnessing pvt investment a challenge: Economic Survey

    India needs to almost double its annual spending on infrastructure at USD 200 billion and the real challenge lies in harnessing private investment, said the Economic Survey 2018-19 tabled in Parliament on Thursday.To achieve the target of $10 trillion economy size by 2032, a robust and resilient infrastructure system is required, supported by adequate private investments.As the country has only been able to put $100 to 110 billion annually into infrastructure development, this huge investment gaps of about $90 billion in the space needs funding through "innovative approaches", the key document said underlining the strong relations between the economy and infra as "the correlation of investments in inland, road, rail and airport infrastructure to GDP are higher than 0.90".

  • The first sentence of volume-1, chapter 1 of #EconomicSurvey2019 is self congratulatory. There are no growth projections sector wise. It appears to me the Govt speaking through the survey is pessimistic about the economy, says  P Chidambaram of Congress.

  • Contract enforcement biggest hurdle in improving ease of doing business ranking##Contract enforcement biggest hurdle in improving ease of doing business ranking

    Contract enforcement remains the single biggest hurdle to improve India's ease of doing business ranking, according to the Economic Survey 2018-19 report tabled in Parliament on Thursday by finance minister Nirmala Sitharaman.

    The report notes that the solution is to improve the judicial system, particularly in lower courts where 3.5 crore cases remain pending.

    “Delays in contract enforcement and disposal resolution are arguably now the single biggest hurdle to the ease of doing business in India”, says the Survey in its chapter titled Ending Matsyanyaya: How To Ramp Up Capacity In The Lower Judiciary. Read more

  • What does the $5 trillion economy target mean?##What does the $5 trillion economy target mean?

  • Economic Survey: A snapshot of Indian economy##Economic Survey: A snapshot of Indian economy

  • Small firms add more jobs, generate more value: CEA Subramanian##Small firms add more jobs, generate more value: CEA Subramanian

    * Small firms add more jobs, generate more value addition

    * Data needs to be used to disburse loans to farmers SMEs easily

    * Cost of data acquisition falling

  • CEA: Economic Survey 2019 is inspired by Gandhiji's Talisman##CEA: Economic Survey 2019 is inspired by Gandhiji's Talisman

    #EcoSurvey2019 is inspired by Gandhiji's Talisman: “…Recall the face of the poorest man [woman], and ask yourself, if the step you contemplate is going to be of any use to him [her],” Subramanian said on his Twitter handle. Read more

  • CEA Subramanian on Swachcha Bharat##CEA Subramanian on Swachcha Bharat

    "Palpable improvement in Sanitation and Girls education Steep fall in diarrohea, malaria cases post Swachcha Bharat."

  • CEA Subramanian: Consumption falls as savings, investment rose##CEA Subramanian: Consumption falls as savings, investment rose

    * Consumption declined in China since 10980, as savings, investment rose

    * Key takeaway is investment must increase for growth

    * China's exports increased as percapita income increased

    * As China's growth increased savings and investment also increased

    * Increase in investment increases productivity & exports

  • Favourable demographics a major plus for growth: CEA Subramanian##Favourable demographics a major plus for growth: CEA Subramanian

    Favourable demographics a major plus for economic growth

    Investment to increase productivity, spur exports, jibs

  • Growth achieved with fiscal discipline, low inflation: CEA Subramanian##Growth achieved with fiscal discipline, low inflation: CEA Subramanian

    * India has grown faster than other economies

    * Growth has been achieved by macroeconomic stability

    * Growth achieved with fiscal discipline, low inflation

  • CEA Krishnamurthy Subramania onblueprint of growth##CEA Krishnamurthy Subramania onblueprint of growth

    * Shifting gears in favour of private investment, which is the key focus of growth blueprint

    * Need greater ease of contract to up private investment

    * Need to unshackle MSME to create jobs

  • PwC India: Ranen Banerjee, Partner & Leader – Public Finance and Economics##PwC India: Ranen Banerjee, Partner & Leader – Public Finance and Economics

    “The Economic Survey has pegged the growth of Indian economy at 7% for FY20. To be able to get the momentum up from the last quarter growth rate of 5.8% to an annual growth rate of 7%, it will require a huge boost in spending by the government. We can expect higher allocations in the budget for capital spending as well as social spending to boost jobs and demand. There can be a short term realignment of the fiscal consolidation map with the deficit targets being marginally raised from the 3.4% in FY19.”

  • NITI Aayog CEO Amitabh Kant on Economic Survey 2019##NITI Aayog CEO Amitabh Kant on Economic Survey 2019

  • India could be Detroit for electric vehicles: Econ Survey##India could be Detroit for electric vehicles: Econ Survey

  • Economic survey candid about economic challenges: NITI Aayog vice-chairman##Economic survey candid about economic challenges: NITI Aayog vice-chairman

    The economic survey tabled in the parliament today is grounded in current realities and candid about economic challenges, NITI Aayog vice-chairman Rajiv Kumar told CNBC-TV18 in an exclusive interview. Read more

  • Minimum wages should be fixed based on geographical region##Minimum wages should be fixed based on geographical region

    * The present minimum wage system in India is complex with 1,915 minimum wages defined for various scheduled job categories across various states. One is every three wage worker in India is not protected by the minimum wage law.

    * Minimum wages should be fixed for four categories namely unskilled, semi-skilled, skilled and highly skilled based on the geographical region and should cover all workers, irrespective of any wage ceilings.

    * A simple, coherent and enforceable Minimum Wage System should be designed with the aid of technology as minimum wages push wages up and reduce wage inequality without significantly affecting employment.

    * An effective minimum wage policy is a potential tool not only for the protection of low-paid workers but is also an inclusive mechanism for more resilient and sustainable economic development.

  • Could use data for public good within legal framework##Could use data for public good within legal framework

    Given that sophisticated technologies already exist to protect privacy and share confidential information, governments can create data as
    a public good within the legal framework of data privacy. In the spirit of the Constitution of India, data should be “of the people, by the people, for the
    people.”

  • Hike in retirement age could be considered##Hike in retirement age could be considered

    "Given the life expectancy of both males and females in India is rising, increasing the retirement age for both could be considered.

    This will be a key to the viability of pension systems and would also help increase female labour force participation in older age groups. Since an increase in the retirement age is inevitable, it may be worthwhile signaling this change well in advance—perhaps a decade before the anticipated shift—so that the work force can be prepared for it.

    This will also help plan in advance for pensions and other retirement provisions."

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