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New Delhi, July 4: The government Thursday projected the country’s GDP growth for 2019-20 at 7%, up from five-year low of 6.8%, on the back of anticipated pickup in investment and consumption.
A day before the Union Budget, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman tabled the Economic Survey 2018-19 in Parliament on Thursday, which stated that India continues to remain the fastest-growing major economy in the world in 2018-19, despite a slight moderation in its gross domestic product (GDP) growth from 7.2% in 2017-18 to 6.8% in 2018-19.
“India’s growth of real GDP has been high with average growth of 7.5% in last 5 years (2014-15 onwards). The economy grew at 6.8% in 2018-19, thereby experiencing some moderation in growth when compared to the previous year,” it said.
This moderation in growth momentum is mainly on account of lower growth in agriculture, trade, transport communication and services related to broadcasting among others, it said.
During the last 5 years, India’s economy has performed well, it said, adding that the government has ensured that the benefits of growth and macroeconomic stability reach the bottom of the pyramid by opening up several pathways for trickle-down.
“To achieve the objective of becoming a USD 5-trillion economy by 2024-25, as laid down by the Prime Minister, India needs to sustain a real GDP growth rate of 8%,” it said.
As per the survey, GDP growth for the year 2019-20 is projected at 7%, reflecting a recovery in the economy after a deceleration in the growth momentum throughout 2018-19.
“The growth in the economy is expected to pick up in 2019-20 as macroeconomic conditions continue to be stable while structural reforms initiated in the previous few years are continuing on course. However, both downside risks and upside prospects persist in 2019-20,” it said. (PTI)