January 31, 2019
India moves from steady to strong and fastest economic growth : PHD Chamber
The economy is expected to grow at 7.7% in 2019-20
While releasing the report on Indian Economy on the Eve of Union Budget : 2019-20, industry body PHD Chamber of Commerce and Industry (PHDCCI) said that the journey of Indian economy has been promising as the economic growth trajectory increased from steady during 1960s to 1990s to strong in 2000s and fastest in the 2010s.
The advent of economic reforms has not only enhanced the economic growth, but also provided a conducive and promising business environment to the citizens of India, said PHDCCI
During the last five years, a broad based strength in the economic indicators have been observed as the growth rate of real GDP has increased from 6.4% in FY2014 to 7.2% in FY2019 which is expected to increase at 7.7% in 2019-20.
The per capita income has increased from Rs.79,118 in FY2014 to Rs.1,25,397 in FY2019.
Exports growth has increased from 7.8% in FY2014 to 12.1% in FY2019. FDI inflows have increased from USD36 billion in FY2014 to USD62 billion in FY2019. Industry growth has increased from 3.8% in FY2014 to 7.8% in FY2019, said the industry body
GFCF growth has increased from 1.6% in FY2014 to 12.2% in FY2019. Forex reserves have increased from USD304.2 billion in FY2014 to USD393.2 billion in FY2019, said PHDCCI
In the financial market segment, the BSE Sensex has increased from 22386 on 31st March 2014 to 35741 on 31st January 2019; showing an increase of 60% in less than five years.
In the business segment, India’s ranking in World Bank’s EODB rankings has improved from 142nd in 2014 to 77th in 2019. Whereas, inflation has come down from 9.5% in FY2014 to 3.3% in FY2019. Accordingly, monetary stance softened from 8% in FY2014 to 6.5% in FY2019.
Going ahead, the economy needs further bold measures to boost the investment environment and to trigger demand growth to the next level.
Time has come to rationalize the direct taxes starting from reduction in Corporate Tax to a level of 25% for all corporate tax payers, without any turnover criteria.
Further, continuous reforms in housing and construction sector, increase in public investments in agricultural infrastructure, credit availability to small and marginal farmers, said the industry body.
The focus on twin merit goods of education with skill development and basic health with safety and continuous reforms in agriculture sector to improve farm productivity and income levels are some of the areas which should be focused upon in the budget, said PHDCCI.
Koteshwar Prasad Dobhal