Economic Survey eyes a virtuous self-sustaining growth cycle\, says expert

Economic Survey eyes a virtuous self-sustaining growth cycle, says expert

The Survey establishes the primary role of savings in driving growth and calls for pushing up savings rates in order to enable an investment cycle funded from domestic resources

Gaurav Kapur 

The annual Economic Survey of the finance ministry, while projecting a shallow recovery in the current fiscal year, has set the policy path for increasing the size of the economy to $5 trillion by March 2025. In that endeavour, the Survey targets a real growth rate of 8 per cent, which, along with 4 per cent inflation, or 12 per cent growth in nominal terms, would allow for reaching the target set by the government.

The journey towards that goal is envisaged through a virtuous self-sustaining growth cycle created by enhancing savings, investment and exports. The Survey draws on the ...

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First Published: Thu, July 04 2019. 23:42 IST