HomeEconomy NewsEconomic Survey 2020 estimates FY21 GDP growth at 6-6.5%

Economic Survey 2020 estimates FY21 GDP growth at 6-6.5%

The Economic Survey 2020 forecast India's GDP growth to be in the range of 6 percent to 6.5 percent in the fiscal year 2020-21

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By CNBC-TV18 February 1, 2020, 6:42:51 AM IST (Updated)

Economic Survey 2020 estimates FY21 GDP growth at 6-6.5%
The Economic Survey 2020 forecast India's GDP growth to be in the range of 6 percent to 6.5 percent in the fiscal year 2020-21. The survey tabled in the Upper House on Friday believes the next fiscal is expected to pose challenges on the fiscal front and the FY20 fiscal deficit target of 3.3 percent of GDP may have to be relaxed.


The Indian economic growth is expected to pick up in the second half of FY20 and a strong rebound could be seen in FY21 on a low base, according to the document.

Easing of monetary policy by the Reserve Bank of India and several measures announced by the government in the last one year present green shoots for growth in H2FY20 and FY21, noted the document.

"The government must use its strong mandate to deliver expeditiously on reforms, which will enable the economy to rebound in 2020-21," added the document.

The survey was released ahead of the Union Budget 2020, which will be presented by finance minister Nirmala Sitharaman on February 1.

First advance estimates released by the Central Statistics Ministry in early January estimated India's GDP growth during fiscal 2019-20 at 5 percent as compared to 6.8 percent in the year-ago period.

Indranil pan, chief economist, IDFC First Bank, said, “For the next fiscal year, a lot would depend on not only the domestic conditions but even the global conditions, where we see the coronavirus issue affecting the financial markets and therefore we need to look at that perspective also.”

Annual economic growth slowed to 4.5 perecent in the July-September quarter, the weakest pace since 2013.

Slowing growth has put pressure on the government to expedite reforms. The government could announce in the Budget 2020 tax concessions for individuals and increase spending on infrastructure after cutting corporate tax rates last year.





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