Economic Survey, blueprint to achieve PM's vision for USD 5 tn economy

The Economic Survey 201819 tabled by Union Finance Minister Nirmala Sitharaman today in Parliament provides a blueprint to achieve the Prime Ministers vision for a 5 trilliondollar economy by 202425 the Federation of Indian Chambers of Commerce and Industry FICCI said in a press releaseIt provides an appropriate policy direction that the government should adopt to achieve the goal of sustained growth and development FICCI saidFICCI completely agrees with the prognosis of Economic Survey that identifies the need to foster interlinkages to meet the macro challenges of growth demand exports and job creation and these will have to be driven through investments especially private investment We hope that tomorrows Union Budget will accordingly present proposals that can resolve the current economic challenges holistically said Mr Sandip Somany President FICCIThough the GDP growth projection as per Economic Survey for 201920 at 7 percent is amongst the highest in the world yet it is lower than the desired growth of 8 percent plus required for achieving the goal of 5 trilliondollar economy Somany addedThe deceleration in these three key parameters over the last few years has been the reason behind growth moderation and there is a need to revive these for building the growth momentum going aheadThe Economic Survey has noted an improvement in the performance of the banking sector with a decline seen in the NonPerforming Assets NPA ratios and recoveries through the IBC process At the same time the Economic Survey has highlighted that the liquidity situation continues to remain tight and financial flows remain constrainedFICCI is of the opinion that the flow of finance to the productive sectors must continue unhindered to facilitate the growth of private investment The government must look at measures for improving the liquidity scenario in the financial sector particularly in the Nonbank financial institution NBFC segment It is imperative to bring down the cost of capital for businesses through a complete transmission of the policy rate cuts Somany addedAs regards building the fiscal capacity the survey identifies the key priorities as broadening and deepening the direct tax base and stabilization of goods and services tax It also emphasizes improving the quality of expenditureThe survey suggests reorienting policies to enable the growth of the Ministry of Micro Small and Medium Enterprises MSMEs and encouraging small firms to grow bigger in scale and size This is critical for enhancing the global competitiveness of the Indian industry FICCI is looking up to the government in order to speed up the process of labor law reforms and provide flexibility to employersOn the agriculture front the survey suggests a shift in focus from land productivity to irrigation water productivity through greater thrust on microirrigation It also recommends the adoption of organic and natural farming techniques including Zero Budget Natural Farming to improve water use efficiency and soil fertilityFICCI is looking forward to adequate budget allocation in the above areas in tomorrows BudgetCatch up on all the latest Crime National International and Hatke news here Also download the new midday Android and iOS apps to get the latest updates