Economic Survey 2020 to give roadmap for $5 tn economy

Economic Survey 2020 to give roadmap for $5 tn economy

Representative image. (Photo/Pixabay)

Coming at a time when India's nominal economic growth, not adjusted for inflation, has been the worst in 42 years, the Economic Survey, to be presented in parliament by around 12.30 pm, is hugely expected to cut the GDP projection by half a percentage point to 6.5% this year.

The survey — the second in a row to be authored by Chief Economic Advisor Krishnamurthy Subramanian — is expected to suggest measures to accelerate the economy in the wake of Prime Minister Narendra Modi's commitment to make India a $5 trillion economy in the next five years.

The survey, which comes at a time when consumer spending remains the bright spot in the global economy, it is expected to suggest the government on how to ramp up consumption along with an equally slowing investment in the country.

A source close to the development said land, labour, capital reforms aided by robust banking and financial system will unleash second-generation reforms in the next five years remains a priority for the economic survey even this year.

Modi government's achievements on the land reforms front remain bleak.

"On land reforms, we need to look at the compensation part. The cost of money for businesses is equally important. Half of the investment woes are over once you fix these two," the CEA had said recently.

Other than that, the survey will look into the reasons behind slowing exports and domestic manufacturing, which comprises about half of the GDP of the country.

Measures of long term reforms in the economy will be spelt out as investors are becoming impatient for reforms.

A few suggestions on the balancing of the government's deficits and economic growth are also expected in the survey.

The stock markets have shown enough enthusiasm in the recent days on the hopes that certain tax measures will be taken in the Budget to give them relief. The survey is also expected to suggest the finance minister on the abolition of some taxes on capital gains as also a tax on the dividend that does not fetch much but imposes a penalty on equity investors.