Budget 2020 LIVE updates: FM Nirmala Sitharaman at Finance Ministry

CEA Krishnamurthy. Photo: ANI
Economic Survey for 2019-20 was tabled in the Lok Sabha on Thursday, a day ahead of the presentation of the Union Budget for 2019-20. The Survey, which is the government’s report card for the year gone by and presents the health of the economy, comes at a time when the economy is slowing and consumption has staggered. Tomorrow, the finance minister Nirmala Sitharaman will present the Union Budget.

The Economic Survey projected India's economic growth at 6 per cent to 6.5 per cent in the next financial year starting April 1, saying growth has bottomed out. The growth in 2020-21 compares to a projected 5 per cent expansion in 2019-20.

Weak global growth impacting India as well as investment slowdown due to financial sector issues had led to growth dropping to a decade low in current fiscal, it said, adding 5 per cent growth projected for 2019-20 is the lowest it could fall for now.

Growth slipped to 4.5 per cent in the July-September quarter.

Prepared by the Government of India's Chief Economic Advisor Krishnamurthy Subramanian, the Economic Survey states that real estate companies lower home prices to clear their unsold inventories.

9:11 AM IST The Economic Survey brings out the economic trends in the country and facilitates a better appreciation of the mobilisation of resources and their allocation in the Union Budget. The Survey analyses the trends in agricultural and industrial production, infrastructure, employment, money supply, prices, imports, exports, foreign exchange reserves and other relevant economic factors that have a bearing on the Budget. It is presented in Parliament ahead of the Budget for the ensuing year.

9:07 AM IST The government is likely to unveil, in the Union Budget 2020, a Troubled Assets Relief Programme (TARP) similar to what the US initiated during the financial crisis in 2008.   Under the proposed scheme, the troubled or stressed assets of the non-banking finance companies (NBFCs) will be bought by a government fund to revive the sector.   A high-level review meeting on this was held on Monday, chaired by Prime Minister Narendra Modi, for a final decision on the matter.   The US government had initiated the TARP at the height of the Wall Street financial crisis of 2008.

9:01 AM IST As clamour grows for more money into the pockets of consumers and households to boost consumption in the economy, the government is discussing multiple options on cuts in personal income tax (PIT) in the forthcoming Union Budget.   A final decision was to be taken by Prime Minister Narendra Modi .   The options being considered by the Finance Ministry include acting on suggestions of task force on direct tax simplification.   A tweaking of tax slabs is on also on the agenda and as part of the restructuring, the government may raise the minimum exemption limit from the current Rs 250,000.

7:01 AM IST India's budgetary fiscal deficit for the April-December period was Rs 9.31 trillion, or 132.4 per cent of the budget estimates (BE). The government has targeted fiscal deficit to be at Rs 7.03 trillion for 2019-20. Read More

6:45 AM IST Finance Minister Nirmala Sitharaman will on Saturday present the budget of the second term of the Narendra Modi government. This will also be the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.    Sitharaman will present the full-year budget for the year ending March 2021.

11:05 PM IST Economist at Deloitte India Rumki Majumdar said the Survey projects growth revival in FY 2021 but suggests that the government may have to incur expansionary policy to support growth.

11:04 PM IST A cut in personal income tax, sops for rural and agriculture sectors as well as an aggressive push on infrastructure spending are likely to be part of Finance Minister Nirmala Sitharaman's "feel-good" second Budget.   Facing the worst economic slowdown in more than a decade, Sitharaman is expected to pull out all stops to spur consumer demand and investment, government sources and economists said.

10:24 PM IST Chief Economic Adviser K V Subramanian on Friday suggested the government should focus on growth rather than being rigid on fiscal deficit in times of slowing economy. "So, we've delineated the overall stance that needs to be taken in times like this. India has been in such situations earlier as well. There's always a delicate balance between spurring growth and keeping the fiscal (situation) in order," Subramanian told PTI in an interaction.

8:59 PM IST Congress leader P Chidambaram on Friday said the state of the economy during Prime Minister Narendra Modi's first tenure was worse than what was believed as growth rates for 2017-18 and 2018-19 have been revised downwards.   He asked if the ministers will explain it.   "GDP growth rates for 2017-18 and 2018-19 have been revised DOWNWARDS. The state of the economy under MODI-1 was actually worse than what we believed so far.   "Will the articulate and voluble Ministers please speak on the state of the economy and explain the downward revision in the last two years and the drastic slide in the current fiscal year," Chidambaram tweeted. 

8:17 PM IST The Congress on Friday hit out at the government on the Economic Survey, saying it is "completely disconnected" with the reality as the country is facing difficult times on the economic front and it is not bothered about the problems faced by the common man.   Congress spokesperson Rajeev Gowda also attacked the government on its "thalinomics" concept given by Finance Ministry's Chief Economic Adviser Krishnamurthy V Subramanian.   He also accused the government of "fudging data" and committing a "fraud" as the numbers presented by it are not believable by the world.   "Thanks to monumental mismanagement by the Modi government, the Indian economy is going through very difficult times. Yet the Economic Survey (ESI) 2019-20 released today is completely disconnected from this grim reality. But this is not surprising as all of the Modi government's chief economic advisers have ignored the ground realities in all these years," Gowda said.

7:45 PM IST The GDP growth projection made in Economic Survey 2018-19 was wide off the mark, as the expansion is estimated at only 5 per cent during the current fiscal as against 7 per cent projected earlier.   It is for the second consecutive time that NSO's GDP estimate is significantly lower than the projection made in the survey prepared by the finance ministry.   As per the National Statistical Office (NSO), economic growth is estimated to touch an 11-year low of 5 per cent during 2019-20, mainly due to slowdown in the agriculture and manufacturing sectors.   The Economic Survey 2018-19, which was tabled in Parliament in July 2019, had projected growth at 7 per cent for the current fiscal ending March 2020.   The Economic Survey 2017-18 had estimated growth for 2018-19 at 7-7.5 per cent. The GDP growth, as per the latest NSO data, has been revised downwards to 6.1 per cent from the earlier estimate of 6.8 per cent.

7:28 PM IST The Economic Survey on Friday made a case for correction in inverted duty structure as it will help in reducing cost of intermediate inputs imported for making goods for exports purpose.   Inverted duty structure impacts the domestic industry adversely as manufacturers have to pay a higher price for raw material in terms of duty, while the finished product lands at lower duty and cost.   It said that in recent times, India's tariff regime has come under pressure from trade partners who seek a cut in the country's basic customs duties.   India has defended its tariff regime stating that it is necessary for protecting the vulnerable businesses in India.

LIVE UPDATES

TARP-like government fund likely in Budget for NBFC relief

The government is likely to unveil, in the Union Budget 2020, a Troubled Assets Relief Programme (TARP) similar to what the US initiated during the financial crisis in 2008.
 
Under the proposed scheme, the troubled or stressed assets of the non-banking finance companies (NBFCs) will be bought by a government fund to revive the sector.
 
A high-level review meeting on this was held on Monday, chaired by Prime Minister Narendra Modi, for a final decision on the matter.
 
The US government had initiated the TARP at the height of the Wall Street financial crisis of 2008.

Tax slabs tweak, higher basic exemption on Budget agenda

As clamour grows for more money into the pockets of consumers and households to boost consumption in the economy, the government is discussing multiple options on cuts in personal income tax (PIT) in the forthcoming Union Budget.
 
A final decision was to be taken by Prime Minister Narendra Modi .
 
The options being considered by the Finance Ministry include acting on suggestions of task force on direct tax simplification.
 
A tweaking of tax slabs is on also on the agenda and as part of the restructuring, the government may raise the minimum exemption limit from the current Rs 250,000.

Apr-Dec fiscal deficit hits 132.4% of budgetary target, at Rs 9.31 trillion

India's budgetary fiscal deficit for the April-December period was Rs 9.31 trillion, or 132.4 per cent of the budget estimates (BE). The government has targeted fiscal deficit to be at Rs 7.03 trillion for 2019-20. Read More

FM Nirmala Sitharaman to present Budget 2020 in Parliament today

Finance Minister Nirmala Sitharaman will on Saturday present the budget of the second term of the Narendra Modi government. This will also be the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India. 
 
Sitharaman will present the full-year budget for the year ending March 2021.

Experts see economic growth revival in FY21

Economist at Deloitte India Rumki Majumdar said the Survey projects growth revival in FY 2021 but suggests that the government may have to incur expansionary policy to support growth.

Push on infra spending likely to be a part of Budget 2020

A cut in personal income tax, sops for rural and agriculture sectors as well as an aggressive push on infrastructure spending are likely to be part of Finance Minister Nirmala Sitharaman's "feel-good" second Budget.
 
Facing the worst economic slowdown in more than a decade, Sitharaman is expected to pull out all stops to spur consumer demand and investment, government sources and economists said.

Better to focus on growth than on fiscal deficit in current situation: CEA

Chief Economic Adviser K V Subramanian on Friday suggested the government should focus on growth rather than being rigid on fiscal deficit in times of slowing economy. "So, we've delineated the overall stance that needs to be taken in times like this. India has been in such situations earlier as well. There's always a delicate balance between spurring growth and keeping the fiscal (situation) in order," Subramanian told PTI in an interaction.


Economy during PM Modi's first tenure was actually worse than what we believed: Chidambaram

Congress leader P Chidambaram on Friday said the state of the economy during Prime Minister Narendra Modi's first tenure was worse than what was believed as growth rates for 2017-18 and 2018-19 have been revised downwards.
 
He asked if the ministers will explain it.
 
"GDP growth rates for 2017-18 and 2018-19 have been revised DOWNWARDS. The state of the economy under MODI-1 was actually worse than what we believed so far.
 
"Will the articulate and voluble Ministers please speak on the state of the economy and explain the downward revision in the last two years and the drastic slide in the current fiscal year," Chidambaram tweeted. 

Eco Survey completely disconnected with problems faced by common man: Congress

The Congress on Friday hit out at the government on the Economic Survey, saying it is "completely disconnected" with the reality as the country is facing difficult times on the economic front and it is not bothered about the problems faced by the common man.
 
Congress spokesperson Rajeev Gowda also attacked the government on its "thalinomics" concept given by Finance Ministry's Chief Economic Adviser Krishnamurthy V Subramanian.
 
He also accused the government of "fudging data" and committing a "fraud" as the numbers presented by it are not believable by the world.
 
"Thanks to monumental mismanagement by the Modi government, the Indian economy is going through very difficult times. Yet the Economic Survey (ESI) 2019-20 released today is completely disconnected from this grim reality. But this is not surprising as all of the Modi government's chief economic advisers have ignored the ground realities in all these years," Gowda said.

Eco Survey's GDP growth forecast for FY20 wide off projection

The GDP growth projection made in Economic Survey 2018-19 was wide off the mark, as the expansion is estimated at only 5 per cent during the current fiscal as against 7 per cent projected earlier.
 
It is for the second consecutive time that NSO's GDP estimate is significantly lower than the projection made in the survey prepared by the finance ministry.
 
As per the National Statistical Office (NSO), economic growth is estimated to touch an 11-year low of 5 per cent during 2019-20, mainly due to slowdown in the agriculture and manufacturing sectors.
 
The Economic Survey 2018-19, which was tabled in Parliament in July 2019, had projected growth at 7 per cent for the current fiscal ending March 2020.
 
The Economic Survey 2017-18 had estimated growth for 2018-19 at 7-7.5 per cent. The GDP growth, as per the latest NSO data, has been revised downwards to 6.1 per cent from the earlier estimate of 6.8 per cent.

Economic Survey makes case for correction in inverted duty structure

The Economic Survey on Friday made a case for correction in inverted duty structure as it will help in reducing cost of intermediate inputs imported for making goods for exports purpose.
 
Inverted duty structure impacts the domestic industry adversely as manufacturers have to pay a higher price for raw material in terms of duty, while the finished product lands at lower duty and cost.
 
It said that in recent times, India's tariff regime has come under pressure from trade partners who seek a cut in the country's basic customs duties.
 
India has defended its tariff regime stating that it is necessary for protecting the vulnerable businesses in India.

Insolvency law reduces resolution time for stressed assets to 340 days: Eco Survey

The average time taken for resolution of stressed assets has come down to 340 days since the insolvency law came into force three years ago compared to around 4.3 years taken earlier, according to the Economic Survey.
 
The Insolvency and Bankruptcy Code (IBC), which came into force in 2016, provides for market-linked and time-bound resolution of stressed assets.
 
The survey, tabled in the Parliament on Friday, also said resolution under the Code has been much higher as compared to other processes.
 
Citing data provided in the report on Trend and Progress of Banking in India 2018-19, the survey said the amount recovered as a percentage of amount involved in 2017-18 and 2018-19 has been much higher as compared to Lok Adalat and Debt Recovery Tribunals (DRTs), among others.

Eco Survey indicates positive outlook for steel, oil and gas sectors: Pradhan

The Economic Survey 2019-20 points to increasing steel production and consumption and easing of crude prices, indicating positive outlook for steel and oil and gas sectors, Union minister Dharmendra Pradhan said on Friday.
 
The Economic Survey, tabled in Parliament by Finance Minister Nirmala Sitharaman, said India produced 64.3 million tonnes (MT) of crude steel and 59.73 MT of finished steel during April-October 2019-20.
 
The sector achieved a growth of 5.2 per cent during April-November period of the ongoing financial year as compared to 3.6 per cent in the year-ago period, it added.
 
In a tweet, Petroleum & Natural Gas and Steel Minister Dharmendra Pradhan said, "#EconomicSurvey also points to increasing steel production and consumption, easing of crude prices all indicating positive outlook for steel and oil and gas sectors." The National Infrastructure Pipeline of Rs 102 lakh crore will facilitate growth, create infra for future and ease lives of common citizens, he said in another tweet.

Corporate tax cut to mostly benefit less than 1% of companies: Survey

The steep cut in corporate tax rate will benefit large companies the most as smaller ones were already paying lower rates, the Economic Survey 2019-20 said on Friday.
 
Finance Minister Nirmala Sitharaman had in September last year announced the lowering of the base corporate tax rate to 22 per cent from 30 per cent for companies that do not seek exemptions and reduced the rate for some new manufacturing companies to 15 per cent from 25 per cent. Including surcharges and cesses (levies to raise funds for specific purposes), the effective corporate tax rate will drop by nearly 10 percentage points to 25.17 per cent.
 
The pre-Budget Survey, tabled in Parliament, said most of the companies (99.1 per cent) have a gross turnover of below Rs 400 crore (say small and medium companies) and are already taxed at the base corporate tax rate of 25 per cent. With surcharge and cess, their tax rate varies from 26 per cent to 29.12 per cent.

Fiscal deficit target may be relaxed to arrest declining growth: Eco Survey

The Economic Survey on Friday made a case for relaxing the fiscal deficit target of 3.3 per cent of GDP in view of the need to arrest declining growth, estimated to touch an 11-year low of 5 per cent in the current fiscal.
 
The Medium Term Fiscal Policy (MTFP) statement presented with the Budget 2019-20, pegged the fiscal deficit target for 2019-20 at 3.3 per cent of gross domestic product (GDP), which was further expected to follow a gradual path of reduction and attain the targeted level of 3 per cent of GDP in 2020-21, and continue at the same level in 2021-22.
 
The year 2019-20 has been challenging for the Indian economy owing to the decelerating growth rate experienced in the first half of the year, said the survey prepared by a team led by Chief Economic Adviser K V Subramanian.

Survey suggests scrapping of 'anachronistic' Essential Commodity Act 1955

The Economic Survey on Friday pitched for scrapping of the Essential Commodities Act (ECA), saying the law is "anachronistic" that leads to harassment and is of no help in checking price volatility.
 
The Survey also favoured "dynamic" foodgrain policy that allows switching from procurement and distribution of grains to cash transfers, but disfavoured loan waiver to farmers that disrupts the credit culture.
 
"The consumer affairs ministry and its related arms must examine whether the anachronistic ECA, which was passed in 1955 in an India worried about famines and shortages, is relevant in today's India," it observed.
 
Stating that around 76,000 raids under the ECA were conducted last year, the Survey said that considerable administrative effort goes into enforcement of this law assuming a minimum of 5 persons involved in a raid.
 
"As the conviction rate, however, is abysmally low and raids have no impact on prices, the ECA only seems to enable rent-seeking and harassment. The Survey provides clear evidence that the case for jettisoning this anachronistic legislation is strong," the document said.

Majority of trade pacts implemented by India have no effect on exports: Survey

Majority of trade agreements being implemented by India have had "no effect" on the country's overall merchandise exports, according to the Economic Survey.
 
It also said that products manufactured in India have clearly benefitted from eight out of the fourteen trade agreements considered in the survey.
 
"A majority of the trade agreements exerted no effect on overall merchandise exports," it said.
 
The survey considered 14 agreements signed by India -- Chile, Korea, Sri Lanka, Singapore, Bhutan, Afghanistan, Nepal, Malaysia, Japan, Thailand, BIMSTEC, Asean, Mercosur, and SAFTA.
 
Exports of manufactured goods from India has benefitted from trade agreements with Mercosur (a six-country trade bloc including Brazil, Argentina, Paraguay and Uruguay), ASEAN, Nepal, Singapore, Chile, Bhutan, Afghanistan and Japan.
 
It said that four of the agreements (SAFTA, BIMSTEC, Thailand and Sri Lanka) had no effect on exports of manufactured products, while the bilateral agreements with Korea and Japan exerted a negative effect.

Fiscal deficit target may be relaxed to arrest declining growth: Survey

The Economic Survey on Friday made a case for relaxing the fiscal deficit target of 3.3 per cent of GDP in view of the need to arrest declining growth, estimated to touch a 11-year low of 5 per cent in the current fiscal.
 
The Medium Term Fiscal Policy (MTFP) statement presented with the Budget 2019-20, pegged the fiscal deficit target for 2019-20 at 3.3 per cent of gross domestic product (GDP), which was further expected to follow a gradual path of reduction and attain the targeted level of 3 per cent of GDP in 2020-21, and continue at the same level in 2021-22.
 
The year 2019-20 has been challenging for the Indian economy owing to the decelerating growth rate experienced in the first half of the year, said the survey prepared by a team led by Chief Economic Adviser K V Subramanian.

Cut in housing prices can help clear unsold inventories, clean up banks' balance sheets: Survey

The residential property market is reeling under huge unsold housing stocks because of issues like stalled projects and delayed possession, but inventories can be cleared if real estate developers take a haircut and reduce apartment prices, according to the Economic Survey.
 
The balance sheets of banks and non-banking financial companies (NBFCs) would also be positively impacted if builders decide so, it added.
 
Pitching for correction in property prices, the survey said that housing prices are ruling at a high level, even as the growth in rates has been muted since 2015-16.
 
"Government's thrust on affordable housing is evident, in order to boost the real estate sector and consequently the construction activity in the country. Higher investment in housing by households may increase the fixed investment in the economy," the survey said.
 
"Existing unsold housing inventory can be cleared and the balance sheets of both bank/non-bank lenders cleaned if the real estate developers are willing to take a 'hair-cut' by allowing the house-prices to drop," it added.

Govt must unleash bold reforms to achieve 6-6.5 pc growth in FY21, say experts, industry

Attaining a GDP growth rate of 6 to 6.5 per cent in 2020-21 as projected by the Economic Survey will be "challenging" and the government needs to prioritise growth while unleashing bolder policy measures to achieve it, experts and industry bodies said on Friday.
 
India's economic growth is expected to "strongly rebound" to 6-6.5 per cent in 2020-21 from 5 per cent estimated in the current fiscal, said the Economic Survey 2019-20 tabled in Parliament on Friday by Finance Minister Nirmala Sitharaman, adding that the government with a strong mandate has the capacity to expedite reforms.
 
"The 6-6.5 per cent growth pegged by the Economic Survey for 2020-21, is a target that is achievable with the right dose of reforms and public investments," CII Director General Chandrajit Banerjee said.

Thalinomics in times of rising prices: Veg, non-veg thalis more affordable, says Eco Survey

Rising inflation may have burnt a hole in common man's pocket but Finance Ministry's chief economic advisor believes otherwise as he brought a novel 'thali' concept to otherwise heavy-duty data crunching to drive home the point that affordability of a plate of meal has improved.
 
Calling it 'Thalinomics', Krishnamurthy V Subramanian compared price of standard veg and non-veg meal plates across the country to say that affordability as a factor of daily wage has improved overtime, indicating improved welfare of the common person.
 
The affordability of vegetarian 'thalis' improved by 29 per cent while that of non-vegetarian by 18 per cent between 2006-07 and 2019-20, the Economic Survey said in its chapter 'Thalinomics -- The Economics of a Plate of Food in India".

Privatised CPSEs reported better profit, sales after transition: Survey

Most privatised CPSE witnessed improvement in net worth, profit, gross revenue and sales growth after the transition, the Economic Survey has said.
 
The survey, tabled in Parliament on Friday, examined the change in performance for each individual central public sector enterprises (CPSE). It studied the movement in major financial indicators for each of the firm ten years before and after the year of strategic disinvestment or privatisation.
 
Taken individually, each privatised CPSE witnessed improvement in net worth, net profit, gross revenue, net profit margin, sales growth in the post-privatisation period compared to pre-privatisation period except for Hindustan Teleprinters, MFIL and Tata Communications in the case of few indicators. it said.

Consequential train accidents decreased in 2018-19: Survey

Stating that steps are being taken on a regular basis to prevent rail accidents, the Economic Survey on Friday said consequential train accidents registered a decline in 2018-19.
 
It said number of consequential train accidents decreased to 59 in 2018-19, compared with 73 in the previous year. In 2019-20 (April-October 2019), 41 consequential train accidents took place.
 
"Safety is accorded the highest priority by Indian Railways and steps are being undertaken on a continuous basis to prevent accidents and to enhance safety of the passengers," according to the Economic Survey 2019-20 tabled in Parliament.

150,000 Ayushman Bharat Health & Wellness Centres to be set up by 2022: Survey

To promote preventive healthcare, 150,000 Ayushman Bharat Health & Wellness Centres are proposed to be set up by 2022, according to the Economic Survey 2019-20.
 
The Survey was tabled in Parliament on Friday by Finance Minister Nirmala Sitharaman. A total of 28,005 such centres have already been set up as on January 14, 2020, it added.

Intense competition, low tariffs led to financial stress in telecom sector: Survey

Substantial competition and low tariff rates by telecom operators since 2016 have led to a financial stress in the sector, the Economic Survey said on Friday.
 
The data price in the country came down by over 99 per cent during 2016-2019, making it among the lowest tariff in the world, according to the survey.
 
"Since 2016, the sector has witnessed substantial competition and price cutting by the telecom service providers (TSPs), creating financial stress in the sector. As a result, the sector is experiencing consolidation. While some operators have filed for bankruptcy, others have merged, in their quest to improve viability," the survey report said.
 
In April-June 2019, the price of data was Rs 7.7 per gigabyte (GB) as compared to Rs 200 per GB in June 2016, it added.
 
"The Average Revenue Per User (ARPU) for GSM based mobile services has also gone down substantially from Rs 126 in June 2016 to Rs 74.30 in June 2019," the survey said.

Survey expresses worry over aging shipping fleet, low share in global tonnage

The Economic Survey has expressed concerns over aging Indian shipping fleet and a meagre 0.9 per cent share of the country in total global dead weight tonnage.
 
About 42 per cent of India's 1,419 fleet is 21 years and above, the Economic Survey for 2019-20, tabled in Parliament by Union Finance and Corporate Affairs Minister Nirmala Sitharaman on Friday, said.
 
"Despite one of the largest merchant shipping fleet among developing countries, India's share in total world dead weight tonnage (DWT) is only 0.9 per cent as on January 1, 2019 ... The existing Indian fleet is also aging, with the average age increasing from 15 years in 1999 to 19.71 years as on October 1, 2019 (42.06 per cent of the fleet is 21 years and above and 12.49 per cent is in the 16 to 20 year age group)," the Economic Survey said.

Eco Survey focuses on wealth creation, says PM Modi

The Economic Survey focuses on wealth creation for Indians and outlines a multi-faceted strategy to achieve a USD 5 trillion economy through enterprise, exports and the ease of doing business, Prime Minister Narendra Modi said on Friday.
 
Economic Survey 2019-20 projected the revival of economic growth to 6-6.5 per cent in the next fiscal beginning April 1 but suggested the government should relax the budget deficit target to boost growth from a decade low.
 
The Survey, released a day before the Union Budget for 2020-21 is presented, called for cutting food subsidy while at the same time looking at businessmen with respect as they create wealth and jobs.
 
"The #EconomicSurvey 2019-20 focuses on wealth-creation for 130 crore Indians. It outlines a multi-faceted strategy to achieve a $5 trillion economy through enterprise, exports, ease of doing business and more," Modi said on Twitter.

Contraction in domestic revenue growth softened IT-BPM sector growth in FY19: Survey

Contraction in domestic revenue growth "softened" the overall pace of revenue growth of the IT-BPM sector to 6.8 per cent in 2018-19 from 8.2 per cent in the previous year, the Economic Survey said on Friday.
 
Nearly 83 per cent of the IT-Business Process Management (BPM) industry continues to be export-driven, with export revenues crossing USD 135 billion in 2018-19, it said.
 
"During 2018-19, the revenue growth (y-o-y) for IT-BPM sector (excluding hardware) softened to 6.8 per cent from 8.2 per cent in 2017-18. This was driven by a contraction of 0.3 per cent in domestic revenue growth even as export revenue growth accelerated to 8.3 per cent," it added.

Congenial environment for aviation sector; airlines to have 1,200 planes by FY'24: Survey

Indian aviation sector "re-established" its resilience this fiscal despite a large airline suspending operations and the government has been providing a congenial environment so that airlines can have more than 1,200 planes by 2023-24, according to the Economic Survey.
 
India is the world's third largest domestic market for civil aviation and has 136 Airports Authority of India (AAI)-managed airports as well as six aerodromes under public private partnerships, it said.
 
In recent times, domestic traffic growth had faced headwinds.
 
The Survey for 2019-20, tabled in Parliament on Friday, also said airlines operators in the country have scaled up their aircraft seat capacity from an estimated 0.07 annual seats per capita in 2013 to 0.12 in 2018.

Stubble burning, construction waste still major concerns: Survey

Agriculture crop residue burning as well as construction and demolition waste continues to be major concerns, the Economic Survey said on Friday adding that Delhi's public-private-partnership model in construction-related waste management should be replicated by other states and cities.
 
Emphasising on the need to use recycled products in construction, the Survey lauded the Delhi public-private-partnership (PPP) model in construction and demolition (C&D) waste management as it supports the Swachch Bharat Mission and supporting the Sustainable Development Goals.
 
"Burning of agricultural residues, leading to rise in pollutant levels and deterioration of air quality, is still a major concern though the total number of burning events recorded reduced due to various efforts taken," the Survey said.

Eco Survey flags 'disproportionate dwarfism' of Indian banks, calls upon PSBs to become efficient

Flagging "disproportionate dwarfism" of Indian banks as compared to the size of the economy, the Economic Survey on Friday called upon public sector banks to become efficient and support economic growth rather than "pullback lending", for India to achieve the goal of becoming a USD 5 trillion economy.
 
The Economic Survey 2019-20 tabled in Parliament by Finance Minister Nirmala Sitharaman noted that despite nationalisation a significant portion of the poor remained unbanked till 2014.
 
The survey also cautioned that "inefficient PSBs can severely handicap the country's ability to exploit the unique opportunities" it can utilise today.
 
It suggested use of FinTech (financial technology) across all banking functions and employee stock ownership across all levels to enhance efficiencies in public sector banks, observing that with the cleaning up of the banking system and the necessary legal framework such as the Insolvency and Bankruptcy Code, the banking system must focus on scaling up efficiently to support the economy.

Sales of over 1.7k listed mfg firms contracted by 7.7 pc in Q2: Survey

Over 1,700 listed private manufacturing firms witnessed their sales contract by 7.7 per cent in the second quarter of 2019-20, after remaining mostly in expansionary zone for three years, according to the Economic Survey 2019-20.
 
The Survey, tabled in Parliament on Friday by Finance Minister Nirmala Sitharaman said demand conditions for the manufacturing sector weakened in September quarter of 2019-20 with a contraction in nominal sales, citing RBI studies on corporate performance.
 
"Petroleum products, iron and steel, motor vehicles and other transport equipment companies were the major contributors to slowdown," it said.
 
Net profit for the manufacturing sector contracted in Q1 (June quarter) of 2019-20, mainly due to a production slowdown, it added.

India should focus on network products to chart China-like export trajectory: Survey

India can emerge as a major hub for assembly of 'network products', and a clear-headed strategy in this direction will help to achieve the target of USD 5 trillion economy, create jobs and chart China-like export trajectory, the Economic Survey said on Friday.
 
The Economic Survey 2019-20, presented in Parliament by Finance Minister Nirmala Sitharaman, drew attention to China's "remarkable export performance" that was driven primarily by specialisation at scale in labour-intensive activities, especially "network products".
 
The Survey highlighted that India also has huge potential to emerge as a major hub for final assembly of 'network products' such as computers, electronics and telecom equipments -- the global value chain which is controlled by the likes of Apple, Samsung and Sony.
 
The Survey exhorted India to grab the "unprecedented opportunity" to chart a China-like export trajectory.

Labour reforms, higher women participation in workforce to push job creation: Survey

Deregulating labour laws, encouraging MSMEs, increasing female participation in workforce and higher spending by pubic sector on health and education would help create more jobs and increase employability in the country, the Economic Survey 2019-20 said on Friday.
 
Besides, the survey also pointed out that India needs to create 55 lakh to 60 lakh jobs annually over the next decade.
 
The document tabled in Parliament on Friday noted that states like Rajasthan which went for deregulation of labour laws created more jobs than those which followed old legal framework.
 
"Deregulating labour law restrictions can create significantly more jobs, as seen by the recent changes in Rajasthan when compared to the rest of the states", it said.

Economic slowdown bottomed out, uptick from here onwards: CEA

Chief Economic Adviser K V Subramanian on Friday said India's GDP is expected to grow at 6-6.5 per cent next fiscal as the economic slowdown has bottomed out.
 
As per the first advance estimates released by the National Statistical Organisation (NSO), the country's economic growth is likely to hit an 11-year low of 5 per cent in the current fiscal ending March 2020.
 
The Economic Survey 2019-20, prepared by a team lead by Subramanian, has projected the GDP to expand in the range of 6-6.5 per cent during 2020-21.
 
The Indian economy has hit the bottom and it will see an uptick from here, he said in a media briefing post the Economic Survey.
 
Amidst a weak environment for global manufacturing, trade and demand, the Indian economy slowed down with GDP growth moderating to 4.8 per cent in the first half of 2019-20, lower than 6.2 per cent in H2 of 2018-19.

Drugs price control has led to increase in price of regulated medicines: Survey

Government interventions to regulate prices of essential drugs have led to hike in their cost when compared to unregulated similar drugs instead of making them affordable, according to the Economic Survey for 2019-20.
 
In India, the government has historically relied on price controls to regulate the prices of pharmaceutical drugs through the National Pharmaceutical Pricing Authority (NPPA) and Drug (Prices Control) Order, said the Survey.
 
The government through DPCO ensures that the medicines listed under the National List of Essential Medicines (NLEM) are available at a reasonable price to the general public, it added.
 
"The regulation of prices of drugs through the Drugs Prices Control Order (DPCO) 2013, has led to increase in the price of a regulated pharmaceutical drug vis-a-vis that of a similar drug whose price is not regulated," the Economic Survey 2019-20, tabled in Parliament on Friday, said

India needs $1.4 trn infra spend in 2020-25 to become a $5 trn economy: Economic Survey

To prevent 'lack of infrastructure' becoming a 'binding constraint' on the growth of Indian economy that aspires to become a USD 5 trillion by 2024-25, the country needs to spend about USD 1.4 trillion on infrastructure, the Economic Survey said on Friday.
 
Investment in infrastructure is necessary for the economy, as power shortages, inadequate transport and poor connectivity affect overall growth performance, the Economic Survey for 2019-20 tabled in Parliament by Union Finance and Corporate Affairs Minister Nirmala Sitharaman stated.
 
"To achieve the GDP of USD 5 trillion by 2024-25, India needs to spend about USD 1.4 trillion on infrastructure. The challenge is to step-up annual infrastructure investment so that lack of infrastructure does not become a binding constraint on the growth of the Indian economy," the Survey said.

Notable turnaround in mineral production due to policy reforms: Economic Survey

India's mineral output has witnessed a notable turnaround on account of reform measures initiated by the government, the Economic Survey said on Friday.
 
The production of major minerals during 2018-19 has recorded a growth of 25 per cent over previous year in terms of value, it said.
 
"There has been a notable turnaround in mineral production because of policy reforms," the Economic Survey 2019-20 tabled in Parliament said.
 
India produces as many as 95 minerals which include 4 hydrocarbon energy minerals, including coal and lignite; 5 atomic minerals, 10 metallic, 21 non-metallic and 55 minor minerals.
They provide basic raw materials to many important industries.
 
"Mining and quarrying sector contribution (at current price) to GVA (Gross Value added) accounted for about 2.38 per cent during 2018-19 as per provisional estimates of Annual National Income 2018-19 published by NSO (National Statistical Office). Based on the overall trend, the Index of Mineral Production (base 2011-12 = 100) for the year 2018-19 is estimated to be 107.9 as compared to 104.9 of previous year," it said.

Rural students spend more than urban counterpart on stationery, uniform: Economic Survey

Expenses of a student on books, stationery and uniform in rural India on an average are over 10 percentage points higher than those in urban areas, although participation in education system has seen improvement at all levels, according to the Economic Survey.
 
As per the Economic Survey 2019-20 tabled in the Parliament by Finance Minister Nirmala Sitharaman, the absence of suitable financial support system and high burden of course fee, especially in higher education, pushes the poor and underprivileged out of the education system.
 
Citing data from the National Sample Survey (NSS) report on 'Key Indicators of Household Social Consumption on Education in India 2017-18', the survey said that in 2017-18, there were about 13.6 per cent persons of age 3 to 35 years who were never enrolled in the education system.
 
"The reasons they cite for not enrolling were 'not interested in education' and 'financial constraints'," it said.

Uptick in retail prices in FY20 mainly on veggies, pulses: Survey

Consumer price inflation has been witnessing moderation since 2014, however, there has been an "uptick" in the prices of food items, particularly vegetables, owing to output disruptions and low base effect, the Economic Survey said on Friday.
 
The Survey has recommended measures to safeguard farmers through procurement under Price Stabilization Fund to help regulate the price volatility of important agri-horticultural commodities and also added that Minimum Support Price (MSP) needs to be made more effective.
 
The Economic Survey 2019-20, presented in Parliament by Finance Minister Nirmala Sitharaman stated that inflation has been witnessing moderation since 2014, however, recently there has been an "uptick".

India's GDP growth neither over- nor underestimated, says Economic Survey

India's GDP growth is neither overestimated nor underestimated and the concerns on data are "unfounded", the Economic Survey 2019-20 said on Friday as it tried to settle the debate over veracity of the macroeconomic data following change in estimation methodology.
 
Recently, Arvind Subramanian, the Narendra Modi government's former chief economic adviser, had said India's economic growth rate has been overestimated by around 2.5 percentage points between 2011-12 and 2016-17 due to a change in methodology for calculating GDP.
 
India's gross domestic product (GDP) growth rate between this period should be about 4.5 per cent instead of the official estimate of close to 7 per cent, he had said in a research paper published at Harvard University.
 
The Economic Survey tabled in Parliament on Friday said the level and growth of a country's GDP informs several critical policy initiatives as it is a barometer of the economy's size and health.
 
"It is also a pre-eminent driver of investment. Therefore, it is important that GDP is measured as accurately as possible," it said.

Economic Survey bats for a Public Sector Banking Network, which would enable the use of Analytics, AI and Machine Learning for making better, data-driven decisions: CEA


Thalinomics: The economics of a plate of food in India

There is no better way to relate economics to the common person than by looking at the price of a plate of food paid by an Indian. Thalis have become more affordable since 2006-07.
 

Fund raising via public issuance of equity, debt climbs 66% to Rs 74,000-cr in Apr-Dec FY'20: Survey

Indian companies garnered nearly Rs 74,000 crore through public issuance of equity and debt during April-December this fiscal, a 66 per cent jump from the preceding financial year, with rights issue emerging as the most preferred route for financing business needs.
 
Companies had raised Rs 44,355 crore in the April-December period of 2018-19, according to the Economic Survey tabled in Parliament on Friday.
 
Of the cumulative Rs 73,896 crore raised in the first nine months of 2019-20, a large chunk of Rs 51,255 crore was garnered through rights issue, Rs 10,895 crore through equity issuance and Rs 11,746 crore via debt markets.
 
Fund raising through rights issue was Rs 1,843 crore in April-December 2018-19.
Economic Survey 2019-20 is a synthesis of the old and the new, said chief economic advisor Krishnamurthy Subramanian. On economic slowdown, he stated that "all groups of countries have slowed down, in a globalized economy, India too has felt the effect."

Change in composition of sensex over the years shows that pro-business policies give a level playing field: CEA

The new firm creation has been particularly pronounced in the services sector: CEA


Evidence shows that the invisible hand of the market, and openness, enables growth at both aggregate and sectoral levels: CEA


Pro-business policies provide opportunities, while pro-crony policies favour incumbents, as per evidence: CEA


When there are large firms whose financial statements are not dependable, it creates ripple effects, affecting credibility of statements of other firms too: CEA

If wealth had not been eroded by wilful defaulters, we could have spent almost double the amount on social sectors: CEA


Sadly, there was not a word on the macro-economic situation: Chidambaram on Prez address

Sadly, there was not a word on the macro-economic situation. Not a word on lost jobs, increasing unemployment and rising consumer price inflation. Not a word on the closure of thousands of industries, especially in the SME sector.

The economic slowdown since 2017 has been due to the lagged effect of reduced investment from 2013: CEA

The economic slowdown since 2017 has been due to the lagged effect of reduced investment from 2013 which occurred due to credit boom-bust: CEA Krishnamurthy

Economic Survey 2020: Govt accepts slowdown in the economy, largely due to the slump in the global economy, says CEA

Govt accepts slowdown in the economy, largely due to the slump in the global economy, says CEA Krishnamurthy Subramanian

Govt accepts slowdown in the economy, largely due to the slump in the global economy, says CEA Krishnamurthy

 

Considering the urgent priority of the government to revive growth in the economy, the fiscal deficit target may have to be relaxed for the current year, according to the Economic Survey.

Economic Survey 2019: FY21 GDP growth seen at 6-6.5%


5 per cent growth projected for 2019-20 is the lowest it could fall for now: Economic Survey

Weak global growth impacting India as well as investment slowdown due to financial sector issues had led to growth dropping to a decade low in current fiscal, it said, adding 5 per cent growth projected for 2019-20 is the lowest it could fall for now.

Economic Survey puts current fiscal growth at 5%

Economic Survey puts current fiscal growth at 5%; says fiscal deficit target for current fiscal may need to be relaxed to revive growth.
Economic Survey 2020: See non-tax revenue, divestment partly offsetting tax gap; high non-tax revenue growth non sustainable

Economic Survey LIVE: See strong rebound in growth in FY21 on low base; growth resurgence expected to begin starting H2FY20

Economic Survey LIVE: Growth resurgence expected to begin starting H2FY20

No fresh investment, redemption for mutual fund investors on Budget day

Mutual funds investors will not be able to make fresh investment or sell their units on the Budget day because subscription and redemption are closed on Saturdays and Sundays, industry officials said.
 
Mutual funds subscriptions and redemptions will not be permitted because all the fund houses in their scheme information documents have declared Saturday and Sunday as "non-business day".
 
Consequently, mutual funds investors will not be able to participate like others participants in stock markets.
 
“Tomorrow, stock exchanges are open but mutual funds are closed for subscription and redemptions,” said Omkeshwar Singh, head of mutual fund distribution business at Samco.
 
Investors through equity and derivatives can participate but investors through mutual funds will not be able to participate, he added.

Ensure no fare hike in rail luggage passes: Dabbawalas to govt

Ahead of the presentation of the Union budget, the Mumbai Dabbawala Association on Friday said the Centre should ensure that there is no increase in the railway’s luggage pass fares so that the tiffin box carriers are not burdened financially.

The government is sparing no effort to fight terrorism. says Kovind

Anti-terror preparations have improved, says President.

Jal Jeevan Mission has ensured clean water supply to every citizen, says President Kovind

150 million rural houses India lack water supply from pipes. It creates a difficult situation for women. Drinking polluted water impacts the family's health. In its endeavour to ensure clean water supply, the govt has started the Jal Jeevan Mission. The Central Govt, the State Govt, local bodies and NGOs are turning this into a movement together, says President

Budget session 2020: Keeping national interest paramount, says President

President Ram Nath Kovind on Friday stressed the need for keeping "national interest paramount" while fulfilling the hopes and aspirations of the countrymen.
 
In his address to the joint session of Parliament, marking the beginning of the Budget Session, Kovind said: "Our Constitution expects from this Parliament and every member present in this House to fulfil the hopes and aspirations of the countrymen and make necessary laws for them, keeping national interest paramount."
 
Kovind also said that any form of violence in the name of protest makes "our society and country weaker."
 
"Any form of violence in name of protest, makes our society and country weaker," said Kovind.

Budget session 2020: CAA historic law, says President Kovind

President Ram Nath Kovind on Friday hailed the contentious Citizenship Amendment Act as "historic" in his address to joint sitting of both houses of Parliament, prompting protests by some opposition members.
 
He also said that debate and discussion on any issue strengthens democracy while violence during protests weaken it.
 
"The Citizenship Amendment Act is a historic law. It has fulfilled wishes of our founding fathers including Mahatma Gandhi," he said.
 
"Debate and discussions strengthen democracy but violence during protests weaken democracy," he said without directly referring to the anti-CAA protests in the country some of which have witnessed violence.
 
In a reference to abrogation of Article 370, Kovind said there is happiness among people of India that people in Jammu and Kashmir and Ladakh have got rights on par with the rest of the country.
 
The President said Parliament has created record in the first seven months of the new government headed by Narendra Modi by enacting several landmark legislations.
 
"My government is taking strong steps for making this decade as India's decade and this century as India's century," he said. 
 

Provision of giving citizenship to all communities prevails, says Prez referring to CAA

Opposition members protest after President Kovind hails CAA in address to joint sitting of both houses.

Biggest start-up environment in India, says Kovind

27,000 new startups have been added recently. The number of patents has increased 4 times while trademark registrations have grown 5 times, says the president.

Bru-Reang agreement to help concerned people in their settlement

Similarly, the Bru-Reang agreement not only solved a long-standing problem but will also help the concerned people and will help in their settlement: President Kovind
The govt had started the special initiative - Indian Sign Language Dictionary. 
 
A special dictionary containing 6,000 words has been designed under the initiative, says President Kovind

Even today there are about 15 cr houses in rural areas, where there is no supply of pipeline water, says Kovind

Budget session: President Kovind condemns attack on minorities in Pakistan



Budget session 2020: Bodo Agreement to end crisis in Assam, says Kovind

The Govt recently signed the Bodo Agreement, ending the crisis that saw 4,000 people lose their lives. The govt will also spend Rs 1,500 crore to develop the areas in the Bodo regions: President Kovind

Budget session 2020: Uproar in Parliament over President's mention of CAA

Members of the Opposition parties protest as President Ram Nath Kovind mentions Citizenship Amendment Act.

Budget session: The abrogation of Article 370 and Article 35A historic, says Prez

The abrogation of Article 370 and Article 35A of the Constitution through two-thirds majority by both the Houses of Parliament is not only historic but it has also paved the way for equal development of Jammu and Kashmir and Ladakh, says President Ramnath Kovind.

CEA Krishnamurthy Subramanian on Economic Survey: The team has prepared the second economic survey in six months

Chief Economic Advisor Krishnamurthy Subramanian on Economic Survey: Our team has done a lot of hard work. The team has prepared the second economic survey in six months.

Economic Survey 2020: Violent protests weaken society, says President

My government is clearly of the view that mutual discussions and debates further strengthen democracy. At the same time, any kind of violence in the name of protest weakens the society and the country, says Kovind.

Budget session 2020: 'This decade is key to India's growth', says Kovind

President Kovind has said that this decade is key to India's growth. It will fulfil the dreams of Gandhi and Nehru.

Budget session 2020: India to lead 4th industrial revolution, says Kovind

Committed to work according to the constitution. Last seven months of the Parliament have been very productive. We should create an India that can lead Fourth Industrial Revolution, says President Kovind.

Budget Session 2020: Maturity of Indians after Ram Janmabhoomi verdict is praiseworthy, says Kovind

Budget Session 2020: President Ram Nath Kovind says the mature way in which the countrymen behaved after the Supreme Court's decision on Ram Janmabhoomi is praiseworthy.

National interests paramount for the government, says Prez Kovind

Our Constitution expects from this Parliament and every member present in this House to fulfill the hopes and aspirations of the countrymen and make necessary laws for them, keeping national interest paramount, says President Ramnath Kovind.

Budget session 2020: Hope there are good debates in Parliament over economic issues, says Modi

Prime Minister Narendra Modi said that a strong foundation will be laid for this decade in the present session of Parliament and hoped there will be good debates in both the Houses on the economy.
 
Speaking ahead of the Budget Session, Modi said that he wanted a vast and qualitative discussion on financial issues in both the houses.
 
"This session should be focussed mainly on economic issues. I want there to be good debates on these issues in both houses.
 
"Our government's identity has been of empowering Dalits, women, those who face exploitation. We want to continue these efforts. This session should be focussed mainly on economic issues. I want there to be good debates on these issues in both houses," he said.

Press Conference by CEA Subramanian on Economic Survey 2019-20

Who prepares the Economic Survey?

The Survey is prepared by the team headed by the Chief Economic Advisor. Krishnamurthy Subramanian, who was appointed the Chief Economic Advisor in December 2018, will present his second Economic Survey.

Want good economic debates in both houses, says PM

We all should make sure that in this session, we lay a strong foundation for this decade. This session will be focussed mainly on economic issues. I want that in both houses there are good debates on these issues.

PM Modi speaking ahead of the Budget session

Copies of Economic Survey reach Parliament


Sonia Gandhi leads anti-CAA protest in Parliament ahead of Budget Session

Congress leader Sonia Gandhi led a protest of party leaders in Parliament against the CAA, NPR and NRC ahead of the Budget Session.
 
Party leaders held placards of 'Save India', 'No to CAA, NRC' and shouted slogans.
 
Senior Congress leaders Motilal Vohra, Ahmed Patel, Adhir Ranjan Choudhury, AK Antony were present at the protest.

Finance officials favours subsidy cuts to expand fiscal room

Finance Ministry officials recommended the government cut some subsidies and reallocate spending to sectors where it can help spur demand in the economy, according to Bloomberg.
 
Rationalization of subsidies such as on food allowances could be a key tool for expanding fiscal headroom.

Copies of Economic Survey reach Parliament

Copies of Economic Survey 2019-20 reached the Parliament complex on Friday morning. Union Finance Minister Nirmala Sitharaman will present it later today.

Economic survey likely to forecast 2020/21 growth at 6%-6.5%: Report

India's economic survey is seen projecting growth of 6% to 6.5% in the next year starting April 1, boosted by a series of fiscal measures to revive demand that the government is likely to announce in the budget, a source said on Friday.
 
India faces its worst economic slowdown in a decade. Growth slipped to 4.5% in the July-September quarter, imperilling job prospects for millions of young people entering the workforce each year.
 
The government has estimated gross domestic product expansion at 5% for the financial year ending on March 31, which would be the slowest pace since the global financial crisis of 2008/09.
The Economy Survey continues to be a two-volume report since five years ago, since Arvind Subramanian was the chief economic advisor (CEA). 
 
This time, incumbent CEA Krishnamurthy Subramanian will lead the writing of the first volume, which will continue to be idea-centric and forward-looking. First volume will also likely include a chapter focusing on the regulatory framework for credit rating agencies (CRAs), which are jointly regulated by the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) at present.

The Budget session of Parliament will be held from February 1 till April 3

The Budget session of Parliament will be held from February 1 till April 3. During this period, the Budget will be presented before the Parliament for deliberation, voting and approval; the departmentally related standing committees consider the Demands for Grants of ministries/departments and report on the same to the Houses of Parliament.

CEA Krishnamurthy Subramanian will be presenting the Economic Survey

The Chief Economic Advisor is the principal author of the Economic Survey and incumbent CEA Krishnamurthy Subramanian will be presenting the Survey.

Economic Survey 2020 to be released today

The government will release the Economic Survey for 2019-20 on Friday, a day before Finance Minister Nirmala Sitharaman presents the Union Budget 2020-21

What is Economic Survey?

The The Economic Survey analyses the trends in agricultural and industrial production, infrastructure, employment, money supply, prices, imports, exports, foreign exchange reserves and other relevant economic factors that have a bearing on the Budget. It is presented in the Parliament ahead of the Budget for the ensuing year. 

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