Economic Survey 2018-19 Predicts Robust 7 Per Cent Growth In FY20; Projects Higher Credit Growth, Demand

A day before Finance Minister Nirmala Sitharaman’s maiden Union Finance Budget, the Economic Survey 2018-19 prepared by Chief Economic Adviser Krishnamurthy Subramanian was tabled in the Parliament today (4 July).

The Economic Survey predicts a growth rate of 7 per cent for the financial year 2019-20 and at the same time projects the investment rate picking up on the back of higher credit growth and demand, Livemint has reported.

The survey predicts that oil prices are set to decline in FY20 which may boost consumption but exports may be hit in light on lower global growth and trade tensions.

The survey also treads a cautious line by warning about challenges on the fiscal front in light of low growth of 6.8 per cent in FY19 and disruptions caused due to the GST and farmer welfare schemes.

As reported by Moneycontrol, fiscal deficit is expected to shrink to 5.8 per cent in FY20, a 0.6 percentage point improvement from the FY19 figure of 6.4 per cent.