New Delhi, July.4(Udaipur Kiran): Finance Minister Nirmala Sitharaman presented Indian economy’s health report card i.e. economic survey on Thursday. In this report, the goal of making India a $5 trillion economy has been set by Prime Minister Narendra Modi during second five year tenure of government. For which Sitharaman said the growth rate of 8 percent per annum is required to be achieved.
An Economic Survey presents the present scenario of the economy with regard to development in income, employment, poverty reduction, cleanliness and hygiene, capital formation, the growth in manufacturing, service and agriculture sector and performance of various developmental schemes offered by government during last financial year and presents estimates for the key indicators for the following financial year.
The Major Highlights of this Economic survey
GDP Growth Rate
Finance Minister Nirmala Sitharaman has predicted 7 percent growth rate in Gross Domestic Product of the country for the current financial year 2019-20. This was 6.8 percent(at its lowest in the span of five years) during the previous financial year 2018-19. The 7 percent growth rate is the fastest growth rate for any nation in the world, but world economy will grow at lesser rate in the current financial year.
The fiscal deficit has been 5.8 percent of GDP in the financial year 2018-19. The same was 6.4 percent of GDP during financial year 2017-18. For the current financial year, it has been pegged to 3.4 of the GDP. The fiscal deficit means excess of expenses over revenues for a government.
Average inflation was less than the inflation during pre Modi Government. However, core inflation was higher than that of the last year. The deflation was experienced in the prices of pulses, vegetables and sugar.
Fall in Prices of Crude Oil
The fall in prices of crude oil is expected during the current financial year
Direct and Indirect Tax collection
During financial year 2018-19, there has been increase of 13.4 percent in collection of direct tax i.e. income tax. However, actual indirect tax(GST) collection has fallen short of budgeted one by 16 percent in FY 2018-19.
India’s eligible workforce will grow by 97 lakh people per year in absolute numbers as per estimates of economic survey.However, after 2030, this number will come down to growth of 42 lakh people per year.
Probable Water Crisis
This economic survey has indicated that the shortage of water will be a major problem by 2050 for Indian Economy. For this, water conservation plans and execution should be in place for sufficient agriculture produce and potable water.
Minimum Wages Structure
The minimum wages structure has been determined in this economic survey. The system of fair and effective minimum wages determination will be strengthened so that at lowest level minimum wages can be fair. This survey has reported 10 percent increase in minimum wages in rural areas and 6.34 percent increase in employment.
The economic survey has delineated the efforts of government on climate front. To reduce carbon waste by 20-25 percent by the 2020, the government has launched Climate Change Action Programme with investment of Rs. 290 crore in 2014.
The agriculture produce has been 28.34 crore tons during the FY 2018-19. The growth of 2.9 percent has been registered in agriculture, forest and fisheries produce.
Exports and Imports
There has been growth of 15.4 percent in imports and 12.5 percent in exports during FY 2018-19.
Foreign Exchange Reserves
Foreign Exchange reserves are at $ 412.9 billion at the end of FY 2018-19. This is within manageable limits according to Finance Minister.