Govt.Revises GDP growth estimates For 2018-19 To 6.1% From 6.8%
NEW DELHI : The government on Friday revised the country’s economic growth for financial year 2018-19 to 6.1 per cent from 6.8 per cent estimated earlier mainly due to deceleration in mining, manufacturing and farm sectors.
“Real GDP or GDP at constant (2011-12) prices for the years 2018-19 and 2017-18 stand at Rs 139.81 lakh crore and Rs 131.75 lakh crore, respectively, showing growth of 6.1 per cent during 2018-19 and 7.0 per cent during 2017-18,” the National Statistical Office said in revised national account data released on Friday.
Under the first revision released in January 2019, real GDP or GDP at constant (2011-12) prices for 2017-18 was pegged at Rs 131.80 lakh crore, showing a growth of 7.2 per cent.
“The growth in real GVA (gross value added) during 2018-19 has been lower than that in 2017-18 mainly due to relatively lower growth in agriculture, forestry & fishing’, mining and quarrying’, manufacturing’, electricity, gas, water supply & other utility services’, financial services, public administration and defense’ and other services’,” it added.
The Economic Survey said that drop in fixed investment by households from 14.3 per cent to 10.5 per cent explains most of the decline in overall fixed investment between 2009-14 and 2014-19.
The Economic Survey focuses on wealth creation for Indians and outlines a multi-faceted strategy to achieve a USD 5 trillion economy through enterprise, exports and the ease of doing business, PM Narendra Modi said today
The Survey, released a day before the Union Budget for 2020-21 is presented, called for cutting food subsidy while at the same time looking at businessmen with respect as they create wealth and jobs.
“The #EconomicSurvey 2019-20 focuses on wealth-creation for 130 crore Indians. It outlines a multi-faceted strategy to achieve a $5 trillion economy through enterprise, exports, ease of doing business and more,” PM Modi said on Twitter.
“However, the stagnation in private corporate investment at about 11.5 per cent of GDP between 2011-12 to 2017-18 has a critical role to play in explaining the slowing cycle of growth and, in particular, the recent deceleration of GDP and consumption.”
In 2019-20, the Centre`s fiscal deficit was budgeted at Rs 7.04 lakh crore (3.3 per cent of GDP) as compared to Rs 6.49 lakh crore (3.4 per cent of GDP) in 2018-19.The Good and Services Tax (GST) collections — the biggest component of indirect taxes — grew by 4.1 per cent for the Centre from April to November 2019.
However, the uptick in growth of cumulative GST collections for the Centre started in October 2019 and has sustained its momentum in November to December 2019 as well.The growth of bank credit which was picking up in the first half of 2018-19 started decelerating in the second half of 2018-19 and further in the first half of 2019-20.
(With Agency Inputs ).