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Key Pointers For Union Budget From Economic Survey 2019

Nirmala_sitharam_ep_budget

Economic survey 2019 contains points to highlight what may come in the Union Budget.
The survey, written by Chief Economic Adviser Krishnamurthy Subramanian and presented in Parliament by Finance Minister Nirmala Sitharaman, has set a target of achieving a sustained 8 percent growth rate on the back of investments to support export-led growth to achieve the Prime Minister’s goal of making India $5 trillion economies by 2024-25. 
Here are some key points which can be expected the FM deal with -:

    1.  Consumption and Investments: The survey said the investment can be a ‘key driver’ of simultaneous growth in demand, jobs, exports & productivity. It said India needs to almost double its annual spending on infrastructure to $200 billion and the real challenge lies in harnessing private investment. 
    2.  Jobs and MSMEs: The Survey observes that once small firms know that they would receive no benefit from continuing to remain small despite aging, their natural incentives to grow would get activated. This will generate economic growth and employment.
    3. Push From Reforms: The Survey said the moderation in growth momentum was mainly on account of lower growth in agriculture, trade, transport communication and services related to broadcasting, among others. 
    4. Boost In Infrastructure: Terming highways as a catalyst for economic growth, the Economic Survey said private sector investments in the sector remained ‘tardy’ as such investors are interested in putting their money only on a short-term basis.
    5. Banking and NBFCs:  The survey said the performance of the banking sector has improved as bad loans declined in last fiscal, but financial flows are constrained due to a fall in money raised from capital markets and stress in the non-banking financial sector.                                                                                              Read EquityPandit’s Technical Analysis of Nifty

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