Economic Survey 2018–19 Tabled by Nirmala Sitharaman; GDP Growth Projected at 7%
Nirmala Sitharaman, Union Finance and Corporate Affairs Minister, tabled the Economic Survey 2018–19 in both Houses of Parliament, outlining India’s macroeconomic outlook and a roadmap toward becoming a $5 trillion economy.
Key Growth Projections
The survey estimates:
- GDP growth at 7% for 2019–20
- 6.8% growth for 2018–19
- Fiscal deficit at 3.4% of GDP
- Forex reserves at $412.9 billion
Sectoral highlights include:
- Agriculture, forestry & fishing growth: 2.9%
- Foodgrain production: 283.4 million tonnes
- Exports growth: 12.5%
- Imports growth: 15.4%
Roadmap to a $5 Trillion Economy
Aligned with Narendra Modi’s vision, the survey outlines the need to accelerate real GDP growth to 8% to achieve the $5 trillion target by 2025.
The core strategy focuses on creating a virtuous cycle of:
- Private investment
- Job creation
- Export expansion
- Demand growth
Focus on Data, Demographics & Reforms
The survey highlights the importance of data as a public good, emphasizing a framework where data is “of the people, by the people, for the people.”
It also flags demographic shifts, recommending:
- Increased healthcare investment
- Gradual increase in retirement age
- Preparation for an ageing population
Social Sector Push
The government has significantly increased spending on social infrastructure:
- Social services expenditure rose from ₹7.68 lakh crore (2014–15) to ₹13.94 lakh crore (2018–19)
- Education spending increased from 2.8% to 3% of GDP
- Health spending increased from 1.2% to 1.5% of GDP
The survey underscores the importance of education and healthcare in achieving inclusive growth.
Welfare Schemes & Rural Support
Under PM-KISAN:
- 3.1 crore farmers received the first installment
- 2.1 crore farmers received the second installment
This reflects the government’s push toward direct income support and rural stability.
Policy Direction & Expert View
Bibek Debroy, Chairman of the Economic Advisory Council to the Prime Minister, welcomed the survey’s emphasis on:
- Fiscal discipline and consolidation
- Private investment as a growth driver
- MSME support and tax reforms
- Federalism and expenditure reforms
He also highlighted the focus on judicial reforms and data governance as key structural advancements.
