New Delhi: The Economic Survey for 2018-19 has projected the Indian economy will accelerate a tad in the current financial year 2019-20 to 7%, the same as the projection by the Reserve Bank of India, from 6.8% a year ago.
“Given the macro-economic situation and the structural reforms being undertaken by the government, the economy is projected to grow at 7% in 2019-20. Growth in investment, which had slowed down for many years, has bottomed out and has started to recover since 2017-18," the Survey, tabled in Parliament by finance minister Nirmala Sitharaman on Thursday, said.
RBI expects economic growth to range between 6.4-6.7% from April to September and accelerate to 7.2-7.5% during the October to March period.
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The survey, the first by chief economic adviser Krishamurthy Subramanian, said India maintained its macro-economic stability by containing inflation within 4% and by maintaining a manageable current account deficit to GDP ratio. “The current account deficit to GDP was higher in 2018-19 as compared to 2017-18, primarily due to higher oil prices, which were about $14/barrel higher in 2018-19 vis-à-vis the previous year. However, the CAD started to narrow in the third quarter of the year," it added.
The Survey said India continued to be the fastest growing major economy in the world, even though the world output growth falling to 3.6% in 2018 from 3.8% in 2017. “Growth rate of world output is projected to fall further to 3.3% in 2019 as growth of both advanced and emerging and developing economies are expected to decline," it added.
Sitharaman will present Budget 2019 on Friday.