Live: Finance Minister Tables Economic Survey In Lok Sabha

The Economic Survey highlighted the importance of reviving investment in the economy, saying that it creates a "virtuous cycle".

Investment in the economy has been weak due to deleveraging of corporate balance sheets. In the economic survey for last year, former CEA Arvind Subramanian had also highlighted the urgent need to revive investment.

"The ratio of gross fixed capital formation to GDP climbed from 26.5 percent in 2003, reached a peak of 35.6 percent in 2007, and then slid back to 26.4 percent in 2017," Arvind Subramanian had written.

The Economic Survey, tabled on Thursday, said that India’s Monetary Policy Committee framework has been successful in containing inflation.

The new monetary policy framework was adopted in 2015 amid high retail inflation. Helped by factors such as low oil prices, inflation has since come down sharply. For two consecutive financial years, average inflation has remained close to the MPC’s target of 4 (+/- 2) percent.

India expects economic growth to rebound this year from a five-year low, aided by a pickup in demand and investment on the back of political stability in the country, according to people familiar with the matter told Bloomberg News, ahead of the presentation of the Economic Survey.

Real gross domestic product growth for the fiscal year started April 1 is projected at 7 percent, the people said, citing a finance ministry document, while asking not to be identified as the report isn’t public.

Political stability will help boost investments and lead to a rebound in growth, the document said. The upside and downside risks to growth are evenly balanced, with monsoon rainfall seen tipping the scales, the people said.

Krishnamurthy Subramanian, formerly an associate professor at Indian School of Business and a banking expert, was appointed as India's new CEA in December 2018 after Arvind Subramanian stepped down ahead of schedule in June 2018 citing personal reasons.

Over the last few months, he has suggested that the government needs to simplify land and labour laws.

Just yesterday, the new CEA tweeted that he is excited to table his first and the new government's first Economic Survey in Parliament.

India’s 2018-2019 economic survey - a document authored by the Chief Economic Advisor to the government - has been tabled in the parliament today by Finance Minister Nirmala Sitharaman.

Newly appointed CEA Krishnamurthy Subramanian along with his team will address a press conference at 1:15 p.m. thereafter.

The annual document acts as a platform to pitch larger economic ideas and concepts which the government may or may not act upon. For example, former CEA Arvind Subramanaian restarted the debate on Universal Basic Income and its application in India. He also started the debate on the use of Reserve Bank of India’s excess reserves for narrowing the fiscal deficit.