Published: Sat, July 06, 2019
Worldwide | By Lisa Hogan

India’s services exports’ growth eases in 2018: Economic Survey

India’s services exports’ growth eases in 2018: Economic Survey

The primary challenges on the fiscal front in 2019-20 are lower revenues hammered by slower-than-expected growth and setting aside extra funds for schemes such as PM-KISAN without compromising the fiscal deficit target.

India remained the world's fastest-growing major economy for almost two years, outpacing China after the right-wing government of Prime Minister Narendra Modi took power in 2014.

"Fortunately, stringent technological mechanisms exist to safeguard data privacy and confidentiality even while allowing the private sector to benefit from the data", said the Economic Survey for 2018-19, tabled in Parliament on Thursday. "In terms of growth, the growth rate of FTAs declined from 14.2 per cent in 2017-18 to 2.1 per cent in 2018- 19", it said.

The Survey said the economy is ideally placed to grow, and job-creation and exports can be pushed to the next level on the microeconomic and macroeconomic foundations laid over the past five years.

Guided by the dictum of "blue sky thinking", the Economic Survey 2018-19 Thursday laid out the ambitious agenda of applying principles of behavioural economics to achieve 8 per cent of sustained GDP growth to make India a $ 5-trillion economy by 2024-25. "Unless the savings go up, you will not be able to really accelerate investment to GDP ratio", said Sunil Sinha, principal economist with India Ratings & Research.

The survey usually contains a summary of the performance of major development programmes, the government's policy initiatives, and a forecast of the economy's prospects.

The survey points out that this could have been due to low farm incomes in rural areas arising from low food prices and also due to the stress in non-banking financial companies (NBFCs), which affected its lending.

"The political stability in the country should push the animal spirits of the economy, while the higher capacity utilization and an uptick in business expectations should increase investment activity in 2019-20", he said. "It is in Volume-2, Chapter 01, but there is only a bland statement that "growth of the economy expected to be 7 per cent in 2019-20".

Investment is the "key driver" of the Indian economy, accounting for 32 per cent of the GDP.

Alternatively, the Survey recommended sale of some datasets to analytics agencies to help them predict demand, discover untapped markets or innovate new products.

Key ingredients include a focus on policies that nourish micro, small and medium enterprises (MSMEs) to create more jobs and become more productive, reduce the cost of capital, and rationalize the risk-return trade-off for investments.

The survey has attribued the January-March 2019 slowdown in GDP mainly to oil-related uncertainty.

It exhorted the government to create and use its rich repository of data for "public good" and benefit of citizens, especially the poor, but within the legal framework of data privacy.

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