NEW DELHI: The government on Friday revised downwards the economic growth rate for 2018-19 to 6.1 per cent from 6.8 per cent estimated earlier mainly due to deceleration in mining, manufacturing and farm sectors.
"Real GDP or GDP at constant (2011-12) prices for the years 2018-19 and 2017-18 stand at Rs 139.81 lakh crore and Rs 131.75 lakh crore, respectively, showing growth of 6.1 per cent during 2018-19 and 7.0 per cent during 2017-18," the National Statistical Office (NSO) said in revised national account data released on Friday.
The Economic Survey presented by chief economic advisor (CEA) Krishnamurthy Subramanian on Friday projected revival of economic growth to 6-6.5 per cent in the next fiscal beginning April 1 but suggested the government to relax the budget deficit target to boost growth from a decade low.
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.
"If you look at the business cycle phenomena in India, typically if you look at the peaks and troughs and co-relate it with what has happened, it seems like we have hit the trough therefore there should be uptick in growth. That is what we are Budgeting," he said in a media briefing post the Economic Survey.
On stocks markets, the CEA pointed that it continues to be upbeat about the country's growth prospects, despite deceleration in GDP (gross domestic product) growth for the sixth consecutive quarter, the Economic Survey 2019-2020 said, adding that the BSE sensex has increased 7 per cent till December 2019 over March.
"This may also reflect the growing perception of India becoming an attractive destination for investment in the backdrop of a decline in the growth of major economies of the world and continued easing of monetary policy by the US Fed," the survey stated.
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