The Economic Survey 2019-20 tabled in the Parliament on Friday has projected India’s economic growth at 6 per cent to 6.5 per cent in the next financial year starting April 1, news agency PTI reported. The projection indicates that the growth has bottomed out.
The survey pegged the FY20 growth rate to 5 per cent.
India’s annual growth slipped to 4.5 per cent in the July-September quarter, the weakest since March 2013, owing to weakening demand and private investment.
Weak global growth impacting India as well as investment slowdown due to financial sector issues had led to growth dropping to a decade low in current fiscal, it said, adding 5 per cent growth projected for 2019-20 is the lowest it could fall for now.
The sign of recovery can be seen in the improved collection of Goods and Service Tax (GST), which reflects the market’s mood. Experts believe that the GST collection in January 2020 would touch record high, maintaining last year’s uptrend.
In November and December last year, the GST collection was above Rs 1 lakh crore after it had dropped below 1 lakh crore mark in the month of August, September and October 2019.
Improvements can also be seen in the automobile sector where companies are showing confidence in prices. On Monday, country’s largest carmaker Maruti Suzuki had raised its prices for selected models.
The Reserve Bank of India’s Monetary Policy Committee (MPC) had projected GDP growth in the second half of the current fiscal year to fall between 4.9 per cent-5.5 per cent against last year’s 4.8 per cent during April-September.
This year’s survey has been printed in lavender colour – the same as the colour of the new 100 rupee currency note, the oldest currency note in circulation in the country. It advocates 10 new ideas that benefit markets as well as the economy.
(With input from agencies)