India needs sustained 8% growth to become a $ 5-trillion economy: Survey

Survey calls for reorienting policies to promote young firms which have the potential to become big, rather than small MSME firms which remain small.

Illustration: Uttam Ghosh/Rediff.com

Following are the highlights of the Economic Survey 2018-19 tabled in Parliament on Thursday:

GDP growth pegged at 7% in 2019-20, up from 6.8% last fiscal

Growth in current fiscal to be driven by investment, consumption

Sustained 8% growth needed to become a $ 5-trillion economy by 2024-25

Huge political mandate augurs well for growth prospects

Investment is the "key driver" of simultaneous growth in demand, jobs, exports & productivity

Green shoots in investment, visible pick-up in credit growth seen

Crude oil prices to decline in 2019-20, to push consumption

General government fiscal deficit seen at 5.8% in 2018-19, against 6.4 per cent last fiscal

Projects imports to grow at 15.4%, exports at 12.5% for 2018-19

Projects 283.4 million tonne of foodgrain production in 2018-19

Foreign exchange reserves at $ 422.2 billion in June 2019

Suggests policies to unshackle MSMEs to grow, create jobs and enhance productivity

Calls for reorienting policies to promote young firms which have the potential to become big, rather than small MSME firms which remain small

Flags need to prepare for ageing of the population; this necessitates more healthcare investment, increasing retirement age in a phased manner

Highlights the immense potential of data of societal interest, says data should be "of the people, by the people, for the people"

Legal reform, policy consistency, efficient labour markets and use of technology focus areas

Contract enforcement biggest constraint to improve Ease of Doing Business ranking; much of the problem is concentrated in the lower courts

Low pay and wage inequality remain serious obstacles towards achieving inclusive growth.

Policy changes needed to lower overall lifetime ownership costs and make electric vehicles an attractive alternative to conventional vehicles

Survey recommends harmonised overarching National Policy on Resource Efficiency.