Economic Survey 2018-2019 Highlights: FY20 GDP growth pegged at 7%; Modi's $5-trillion economy dream

CPI(M) general secretary Sitaram Yechury on Thursday alleged that the Economic Survey is full of "bombastic" claims and "grandiose" declarations, but lacks basic facts.

. The GST Council is empowered to take all major decisions concerning amendments of GST under the GST regime. As far as indirect tax is concerned, the scope of the Union Budget is largely limited to proposing amendments to the GST law already recommended by the GST Council along with amendments about the Customs law. In this backdrop, here is what we hope from the Union Budget 2019:

. Print accounted for the second largest share of the Indian M&E industry with revenueof 30,550 crores in 2018 with a growth of 0.7%, according to the Economic Survey 2019.

. India is a country known for cultural, religious and linguistic diversity. The Economic Survey of India has tapped into this emotion to control tax evasion and willful defaults with the 'Doctrine of Pious Obligation'.

. Chief Economic Adviser K Subramanian Thursday seemed to rubbish his predecessor Arvind Subramanian claim of India overestimating its growth rate, saying that it is very hard to create a narrative which is different from the truth.

. The amount of money raised through public issues of equity and debt halved to Rs 54,915 crore in 2018-19 compared to the year-ago period, according to the Economic Survey.

. Given that there are around 4 billion internet users in the world, one in eight is an Indian, says the Economic Survey report.

. The Economic Survey on Thursday exhorted the government to create and use its rich repository of data for "public good" and benefit of citizens, especially the poor, but within the legal framework of data privacy.

. "Economic Survey 2019, a direction for India towards $5 trillion economy. It has given strategies on boosting investment to fuel a virtuous cycle of economic growth, improved productivity, boosting consumption and channelizing.Economic Survey has also compared economic fundamentals of other growing economies&proposed a strategy for achieving economic equilibrium in a holistic manner,"saidPravin Srivastava, Chief Statistician of India and Secy, MoSPI. (ANI)

. Economic Advisory Council to the Prime Minister (EAC-PM) Chairman Bibek Debroy Thursday said the Economic Survey 2018-19 has laid down the blue print for growth and job creations over the next five years.

. Former finance minister P Chidambaram on Thursday said there are no sector-wise growth projections in the pre-Budget Economic Survey tabled in Parliament and the government itself appears to be pessimistic about the economy.

. Elara Securities (India) Private Limited has released the Economic Volume 2, revealing latest reports of India's economic status and the challenges, finance ministry has to face in the near future.

. After Finance Minister tabled the Economic Survey in the parliament CEA KV Subramanian, the author of the survey, addressed a press conference, wherein he made a presentation about the economic survey. Here are the key takeaways ...

. Elaborating on the Startup ecosystem, the Economic Survey maintained thatgrowth in the new economy cannot befostered without an ecosystem that rewardsinnovation and entrepreneurship. It stated that policyambiguitiescan impact investmentsby dampening the 'animal spirits'in the economy.

. The Economic Survey shows how different States are working towards EVs development

. Gender Budgeting, as statedby theMinistry of Women & Child Development in 2015, is using Budget as an entry point to apply a gender lens to the entire policy process.

. The gross tax to GDP ratio declined to 10.9 per cent in 2018-19 as indirect tax revenues fell short of budget estimates by about 16 per cent, due to shortfall in Goods and Services Tax (GST) mop up, the Economic Survey said.

. The government on Thursday said "perverse incentives" targeting "dwarf" companies must be replaced with prioritising start-ups and "infant" firms in high employment-elastic sectors to foster economic growth and create jobs.

. India needs to have a well-designed minimum wage system, which would decrease wage inequality, alleviate poverty and bring inclusive growth, especially at lower levels, according to the Economic Survey 2018-19.

. There is a need to address the "burgeoning food subsidy bill" in order to sustain the government's food security programme for the poor, the Economic Survey said on Thursday.

. On the Startup India initiative, the Economic Survey states that startups drive economic growth, create employment and foster a culture of innovation. It states that, as on March 1, this year, 16,578 new start-ups were recognised spread across 499 districts across the country.

. The Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), Bibek Debroy, welcomed the Economic Survey’s emphasis on fiscal consolidation and fiscal discipline and investments, especially private investments, as the growth driver.

. Investment as a percentage of GDP has to be more than 30%; we need to invest at close to 35% going forward, in order to sustain the virtuous cycle triggered by investment: KV Subramanian

. The Economic Survey 2018-19 made a strong case for filling up vacancies in district and high courts to clear 3.5 crore pending cases at a faster rate and improve ease of doing business.

. The government has taken several measures to address the housing needs of millions by focusing on the ‘Housing for All by 2022’ mission, through movements like RERA, cut in GST, etc.

. The only thing taxing domestic IP creation will achieve is that the original IP market will remain stagnant, or worse still shrink, while foreign contract work will be encouraged.

. We owe it to the country to think not only of our rights, but also of our duties: KV Subramanaian

. Why many affluent people have not given their subsidy? The Economic Survey 2018-19 has an answer -- “people have a strong tendency to go with the status quo”.

. Need to unshackles small firms to create more jobs: KV Subramanian

. Chief Economic Adviser K V Subramanian Tuesday said he was looking forward "with excitement" to presenting the new NDA government's first economic survey in parliament.

. Labour reforms can enable more jobs in small firms: KV Subramanian

. Small firms are 85% of all firms: KV Subramanian

. 'Beti bachao' project improved birth ratio: KV Subramanian

. Demographic change will enable growth: KV Subramanian

. Increase in investment rate helps in bringing down unemployment: KV Subramanian

. Economic survey is blueprint to achieve vision of Indian economy at $5 trillion,: CEA KV Subramanian

. India's economy is poised to take off and first chapter provides a blueprint of take-off: KV Subramanian

. Here are 10 facts to know about the Indian Economy ahead of the Economic Survey

. Economic Survey 2018-19 called for nourishing India's laggard MSME sector in order to create jobs in large number as India's working age population is expected to grow by 97 lakh per year during the coming year and 42 lakh per year in 2030.

. Insolvency and Bankruptcy Code is one of the most important economic reforms of recent times designed to effectively deal with non-performing Corporate Debtors. National Companies Law Tribunals need to be scaled up: PIB

. India undertaking one of the world’s largest renewable energy expansion programmes.

Globally, India stands 4th in wind power, 5th in solar power and 5th in overall renewable power installed capacity.

. India now stands at rank 77 among the 199 countries surveyed by World Bank for the ease of doing business index.

. By 2050, India will be in the global hot spot for ‘water insecurity'. There is an urgent need to focus on irrigation water productivity to raise agricultural productivity.

. Delay in contract enforcement and disposal resolution arguably the largest hurdle to India's ease of doing business.

District and Subordinate courts must be focus of reforms to clear out pending cases, the bulk of which is concentrated in those courts.

FIlling vacancies in lower courts and High Courts enough to achieve 100% clearance rate.

UP, Bihar, Odisha, West Bengal need special attention.

. Small firms in organised manufacturing still dominatethe economic landscape. The figures haven't changed substantially since 2010-11

. India's economy should grow at 7% in the financial year 2019-20 but the country needs a sustained 8% growth rate per annum to become a $5 trillion economy by 2024, the Economic Survey for 2018-19 tabled in parliament by Finance Minister said Friday.

It made the case for investment-driven “virtuous cycle” to sustain a GDP growth rate at 8% and said investment would be the "key driver" of simultaneous growth in demand, jobs, exports and productivity.

. Anagaha Deodhar, Economist, ICICI Securities, on the Economic Survey:

The GDP growth of 7% for FY20 projected by the Economic Survey is in line with our expectations. High-frequency indicators show that growth in Q1FY20 remained weak and we expect Q2 to remain weak as well.

"Assuming inflation of 3.7% in FY20, nominal GDP growth for FY20 is likely to be ~10.7%. Hence, we expect the government to revise the tax collection target downwards.

"While aggregate capex growth is showing signs of bottoming out, it is largely driven by PSUs, while private capex growth remains weak. Hence, a broad-based and meaningful recovery in capex growth could take some time.

"The survey argues that accommodative monetary policy is likely to cut real lending rates, however, we believe slow transmission is likely to limit gains."

. She must find resources for welfare programs announced by Prime Minister Narendra Modi’s government, including Rs 87,000 crore ($12.6 billion) for a new measure to support farmers.

. Construction of national highways (NH) proceeded at a rapid pace with more than 20 per cent of the existing highway length of 132,000 km being constructed in the last four years alone

. Survey predicts working-age population to grow by about 97 lakhs per year in the upcoming decade and by 42 lakhs per year in the 2030s.

. Labour law flexibility required for efficient job creation and sustenance like what the Rajasthan government has done

. NITI Aayog has recommended over 50 enterprises for the government to divest from, of which more than 35 have been approved

Govt needs better productive efficiency, sitting on a lot of assets.

Focus on asset recycling and divestment needed.

. Direct taxes have grown by 13.4% owing to improved performance of corporate tax. However, indirect taxes have fallen short of estimates by about 16 per cent, largely owing to the shortfall in GST revenue.

. Economic Survey suggests policy recommendations for an effective design of minimum wage system for inclusive growth

. Iran sanctions on Crude Oil imports may impact petroleumsubsidy,Crude prices

Policymakers must ensure that actions are predictable

. Investment key growth driver, focus on SMEs important

Savings must increase more than investments to accumulate precautionary savings

Savings, growth positively co-related

. Rural wage growth decline bottomed out, increasing since mid-2018. Demand should be spurred in the rural sector with growing wages.

. Crude could see upward pressure as growth slows globally

Aggressive export strategy should be part of investment-driven model

Yields impacted due to tight liquidity since September 2018

. Uncertainty over trade tension, lower global growth may hit exports

Fiscal front to face challenges from slow growth, GST and farm schemes

Govt policy expected to lift more restrictions from FPI inflows

. India needs sustained 8% growth to achieve $5 trillion GDP by FY25

Several challenges facing fiscal front in FY20

GST buoyancy key to improved fiscal situation in FY20

Revenue collection may be hit if FY20 growth slows

. Stress in NBFC sector a reason for FY19 slowdown

Political stability should push Economy going ahead

Govt stood with its fiscal consolidation path in FY19

. Accomodative MPC policy to help cut real lending rates

Decline in NPAs should push up CAPEX cycle

Oil prices seen declining

Farmers may have produced less in FY19 on food price fall

Investment rate seen higher in FY20 on higher credit growth

. Jan-March economic slowdown due to Poll-related activities. GDP growth in Jan-March quarter was 5.8%, much higher than the revised budget estimate of 3.4%

India's GDP average at 7.5% over the last 5 years

. While the Economic Survey offers suggestions on economic policies to the government, the government is not bound to accept these recommendations. The Economic Survey is a tool of sorts or as a policy guide for the government.

Even though the Economic Survey recommendations serve as a precursor on what to expect from Budget, several proposals don't make to the Finance Minister's Budget speech.

. Domestic equity benchmarks BSE Sensex and NSE Nifty started on a positive note Thursday as investors awaited cues from theEconomicSurvey.

. Economists are of the view that prescribing a reform roadmap to fulfil Prime Minister Narendra Modi's commitment for a $5 trillion economy will be a difficult job for the new CEA, whose term is witnessing a five-year low GDP growth and millions of jobs have been lost after two back-to-back structural reforms – demonetisation and GST.

. - Talk on job creation

- Concerns of growth rate slowdown

- Commentary on Fiscal concerns

- Comments for RBI & govt to revive economic growth

- Necessity of quality data on growth, jobs and other economic indicators

. Ahead of the union budget on Friday, Finance Minister Nirmala Sitharaman will table the economic survey for 2018-19 in parliament at12 noon.

. How to reduce cost of land, labour and capital to tackle a sharp slowdown in investment will be a key prescription of this year’s Economic Survey to be presented in Parliament on July 4, a day ahead of the Union Budget for 2019-20.

Economic Survey 2018-2019 Highlights: FY20 GDP growth pegged at 7%; Modi's $5-trillion economy dream

Economic Survey 'bombastic', lacks basic facts: CPI(M)

Union Budget 2019 Wishlist for Indirect Tax

Print accounts for second largest share of M&E industry

Econ Survey invokes religion to stop tax evasion

CEA rejects Arvind Subramanian's claims on economy

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