New Delhi: The first economic survey for the newly elected Narendra Modi government lays a five-year roadmap for a spur in job creation in the country along with focusing on growth. The survey says job creation can be fostered by boosting private investment.
Newly appointed Chief Economic Adviser (CEA) KV Subramanian, in his first economic survey, has predicted real Gross Domestic Product (GDP) growth rate at 7 per cent. The annual document also cautions against new schemes being funded at the cost of raising the fiscal gap.
For new schemes to be funded, the Centre needs revenue and the economic survey says that revenue mop-up may be hit if growth slows in the current financial year.
The survey also informed that falling nominal GDP growth shows secular inflation fall. The share of informal sector to manufacturing growth fell in the previous financial year, says the survey.
Pointing at the possible hurdles for the economy in the future, the survey said slow growth, GST and farm schemes will pose challenges on the fiscal front.
The already struggling export sector of India may further slump as lower global growth, increased uncertainty over trade tension may hit exports. However, an aggressive export strategy must be part of investment-driven model.