Key highlights of India Economic as Depicted in Survey 2018-19
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Thursday tabled the Economic Survey 2018-19 in the Parliament. The key highlights of Indian economy as depicted in the Survey 2018-19 are as follows
* India is still the fastest growing major economy in 2018-19.
* Growth of GDP moderated to 6.8 per cent in 2018-19 from 7.2 per cent in 2017-18.
* Inflation contained at 3.4 per cent in 2018-19.
* Non-Performing Assets as percentage of Gross Advances reduced to 10.1 per cent at end December 2018 from 11.5 per cent at end March 2018.
* Investment growth recovering since 2017-18
* Growth in fixed investment picked up from 8.3 per cent in 2016-17 to 9.3 per cent next year and further to 10.0 per cent in 2018-19
* Current account deficit manageable at 2.1 percent of GDP
* Fiscal deficit of Central Government declined from 3.5 percent of GDP in 2017-18 to 3.4 percent in 2018-19.
* Prospects of a pickup in growth in 2019-20 on the back of a further increase in private investment and acceleration in consumption.
* FY 2018-19 ended with fiscal deficit at 3.4 per cent of GDP and debt to GDP ratio of 44.5 per cent (Provisional).
* As per cent of GDP, total Central Government expenditure fell by 0.3 percentage points in 2018-19 PA over 2017-18:
* 0.4 percentage point reduction in revenue expenditure and 0.1 percentage point increase in capital expenditure.
* States' own tax and non-tax revenue displays robust growth in 2017-18 RE and envisaged to be maintained in 2018-19 BE.
* The revised fiscal glide path envisages achieving fiscal deficit of 3 per cent of GDP by FY 2020-21 and Central Government debt to 40 per cent of GDP by 2024-25.
MONEY MANAGEMENT AND FINANCIAL INTERMEDIATION
* Banking system improved as NPA ratios declined and credit growth accelerated.
* Insolvency and Bankruptcy Code led to recovery and resolution of significant amount of distressed assets and improved business culture.
* Till March 31, 2019, the CIRP yielded a resolution of 94 cases involving claims worth Rs 1,73,359 crore.
* As on 28 Feb 2019, 6079 cases involving INR2.84 lakh crores have been withdrawn.
* As per RBI reports, Rs 50,000 crore received by banks from previously non-performing accounts.
* Additional Rs 50,000 crore "upgraded" from non-standard to standard assets.
* Benchmark policy rate first hiked by 50 bps and later reduced by 75 bps last year.
* Capital mobilised through public equity issuance declined by 81 per cent in 2018-19.
* Credit growth rate y-o-y of the NBFCs declined from 30 per cent in March 2018 to 9 per cent in March 2019.
PRICES AND INFLATION
* Headline inflation based on CPI-C continuing on its declining trend for fifth straight financial year remained below 4.0 per cent in the last two years.
* Food inflation based on Consumer Food Price Index (CFPI) also continuing on its declining trend for fifth financial year has remained below 2.0 per cent for the last two consecutive years.
* CPI-C based core inflation (CPI excluding the food and fuel group) has now started declining since March 2019 after increment during FY 2018-19 as compared to FY 2017-18.