The government expects investment rate to pick up in FY2020 on higher credit growth and improved demand rebound in investment cycle, it said in Economic Survey 2019 tabled in Parliament today.
The Economic Survey 2019 was tabled by Finance Minister Nirmala Sitharam and prepared by Chief Economic Advisor Krishnamurthy Subramanian projects a positive picture of Indian economy. The survey predicts a rebound in investment cycle, stating that investment rate will pick up in FY 2020 on higher credit growth and improved demand.
FULL COVERAGE: Union Budget 2019
Growth in investment, which had slowed in many years, has bottomed out and has started to recover since 2017-18. Growth in fixed investment picked up from 8.3 per cent in 2016-17 to 9.3 per cent in 2017-18 and further 10% in 2018-19, the Survey said.
The survey also states that lower global oil prices will boost consumption. The Economic Survey has also predicted 7 per cent GDP growth in FY' 20 on stable macro economic conditions.
Further, the survey affirms a decline in NPAs, which will help to push capex cycle. Non-performing assets as a percentage of gross advances reduced to 10.1 percent at end December 2018 from 11.5 percent at end March 2018.
The Survey also said India will need to grow at 8 per cent to become a $5 trillion economy by FY' 2025.
The Economic Survey is an annual document by the Finance Ministry and government of India which reviews the economy of the country over the past year and current financial year.
It consists of detailed data on macro economy as well as the different sectors. The Economic Survey serves as a guideline for Union Budget since it also contains policy ideas, key statistics on economic parameters and in-depth research on macro and sectoral trends.