CEA sees growth rebounding to 6%
- The Economic Survey for 2019-2020 seems an exercise driven by 20/20 hindsight, combined with an optimistic 20/20 vision for the year to come, as it expects GDP growth to revive from the 5% estimated for this year to a range between 6%-6.5% next year.
- While admitting there has been a slowdown with the economy poised to grow at just 5% in 2019-20 — the slowest in 11 years — Chief Economic Adviser (CEA) Krishnamurthy Subramanian, attributed the deceleration to slower global growth and domestic financial sector woes that need attention. Mr. Subramanian had projected a 7% growth earlier.
- But he added that the seeds for the growth decline since 2017 were sowed under the UPA regime in 2013, when private investment began tapering off . While food inflation has spiked, the Survey uses behavioural economics to show that eating a thali has become more affordable in recent years.
GDP revised downwards for 2018-19
- The National Statistics Office (NSO) on Friday released re- vised estimates for economic growth in the last three years, pegging actual GDP growth in 2018-19 at 6.1% in- stead of the 6.8% provisional estimates reported earlier in May 2019.
- “Real GDP or GDP at constant (2011-12) prices for the years 2018-19 and 2017-18 stand at ₹ 139.81 lakh crore and ₹ 131.75 lakh crore, respectively, showing growth of 6.1% during 2018-19 and 7% during 2017-18,” the NSO said in a statement.
- As per the first revision for 2017-18 numbers re- leased last January, real GDP had grown at 7.2%.
- In terms of gross value added (GVA), the economy grew at 6% in 2018-19 as opposed to 6.6% estimated earlier, with primary sector GVA growth pared from 2.7% estimated earlier to 1%..
Trump likely to be acquitted
- With a key Senator declaring that he would vote against new witnesses in the impeachment trial of U.S. President Donald Trump, the President is likely to be acquitted before the close of Friday’s Senate session. GOP Senator Lamar Alexander of Tennessee said Mr. Trump’s relationship with Ukraine were inappropriate but not grounds for his removal.
- Mr. Trump was impeached by the House of Representatives in December for abuse of power and obstruction of Congress. A House Democrat led inquiry had concluded that Mr. Trump with held aid for Ukraine to put pressure on the government to launch investigations into former Vice- President Joseph Biden, and his son, Hunter.