Stepping up private investments, exports and job creation will be key to achieving target of doubling economy's size
The survey was presented in Parliament. Pic/PTI
The real gross domestic product (GDP) growth, which slowed to a five-year of 5.8 per cent in the first three months of 2019 — well below China's 6.4 per cent, is expected to rise to 7 per cent in the fiscal year 2019-20 that started in April, it said. GDP growth was 6.8 per cent in 2018-19, down from 7.2 per cent in 2017-18. India is currently the sixth-largest economy in the world with a size of USD 2.7 trillion. It is expected to overtake Britain to become the fifth-largest next year.
Authored by Chief Economic Adviser Krishnamurthy Subramanian, the Economic Survey said investment (especially private), is the 'key driver' that boosts demand, creates capacity, increases labour productivity, introduces new technology, allows creative destruction and generates jobs.
He said structural reforms such as ones in the labour sector are needed to bring in the much-needed private investment. Also, micro, small and medium enterprises (MSME) sector needs focus as the bulk of the job creation and growth support would come from this segment. The survey propagated the economics of "nudge" at the household level, judicial reforms to smoothen out enforcing of contracts, and investment reforms.
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