Modi government 2.0`s first Economic Survey: Key points in pictures

Finance Minister Nirmala Sitharaman on Thursday tabled the Economic Survey 2018-19 in Parliament on Thursday, which projected that India would grow at 7 per cent in 2019-20 as compared to 6.8 per cent in 2018-19. The Survey also says that India maintains its fastest-growing large economy tag in the world. “India continues to remain the fastest growing major economy in the world in 2018-19, despite a slight moderation in its GDP growth from 7.2 percent in 2017-18 to 6.8 percent in 2018-19. On the other hand, the world output growth declined from 3.8 percent in 2017 to 3.6 percent in 2018,” the Survey said.

The Economic Survey stated that the Swachh Bharat campaign has led to a sea change in the dignity of people, especially women. It is increasing girls' enrolment in schools, and improving health standards.

The Economic Survey stated that services sector growth declined marginally to 7.5 per cent in 2018-19 from 8.1 per cent in 2017-18. Services sector (excluding construction) has a share of 54.3 per cent in India’s GVA and contributed more than half of GVA growth in 2018-19.

The Economic Survey 2018-19 said the General Government (Centre plus States) has been on the path of fiscal consolidation and fiscal discipline. It says revenue augmentation and expenditure reprioritization and rationalization continue to be integral to fiscal reforms.

The Economic Survey reads: “India continues to remain the fastest growing major economy in the world in 2018-19, despite a slight moderation in its GDP growth from 7.2 percent in 2017-18 to 6.8 percent in 2018-19. On the other hand, the world output growth declined from 3.8 percent in 2017 to 3.6 percent in 2018.”

The Economic Survey notes that India’s foreign exchange reserves continue to be comfortably placed in excess of USD 400 billion. The Rupee traded in the range of 65-68 per USD in 2017-18 but depreciated to 70-74 in 2018-19. The exchange rate in 2018-19 has been more volatile than in the previous year, mainly due to volatility in crude prices, but not much due to net portfolio flows.

Economic Survey projects 283.4 million tones of foodgrains production for 2018-19. Food inflation based on Consumer Food Price Index (CFPI) continues on its declining trend for fifth financial year has remained below 2.0 per cent for the last two consecutive years.

Fiscal deficit of Central Government declined from 3.5 percent of GDP in 2017-18 to 3.4 percent in 2018-19. Prospects of pickup in growth in 2019-20 on the back of further increase in private investment and acceleration in consumption.

Although the Current Account Deficit (CAD) increased to 2.1 per cent of GDP in 2018-19, up from 1.8 per cent in 2017-18, it is within manageable levels. The widening of the CAD has been driven by a deterioration in the trade deficit from 6.0 per cent of GDP in 2017-18 to 6.7 per cent in 2018-19.

Agriculture sector in India typically goes through cyclical movement in terms of its growth. Gross Value Added (GVA) in agriculture improved from a negative 0.2 per cent in 2014-15 to 6.3 per cent in 2016-17 but decelerated to 2.9 per cent in 2018-19.