The Union government on Thursday pegged the growth rate for the current fiscal at 7 per cent, marginally up from the five-year low of 6.8 per cent recorded in the previous fiscal.

According to the Economic Survey for 2018-19, tabled by Finance Minister Nirmala Sitharaman in the Rajya Sabha, "real GDP growth for the year 2019-20 is projected at 7 per cent reflecting a recovery in the economy after a deceleration in the growth momentum throughout 2018-19.

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"The fiscal deficit, as per the survey deteriorated to 5.8 per cent of the GDP as compared to 3.4 per cent for 2018-19 estimated in the interim Budget."

Highlights:

    We have put a lot of effort with a lot of dedication. We hope we are able to contribute to the ideas for the economy, Chief Economic Adviser Krishnamurthy Subramanian said.

    The survey strikes a rich note of optimism. "The political stability in the country should push the animal spirits of the economy, while the higher capacity utilization and the uptick in business expectations should increase investment activity," Subramanian says in his survey.

    It predicts 2019-20 GDP growth picking up on the back of higher private investment and a boost in consumption. The investment rate is also seen picking up on higher credit growth and improved demand during the period, according to sources quoted by the Reuters news agency

    The GDP growth for 2019-20  has been projected at 7%. But to achieve Prime Minister Narendra Modi's goal of making India a $5 trillion economy by 2025 this growth has to be at 8%

    Oil prices expected to decline in 2019-20. If this holds good, it should prove helpful both to the government and to the aam aadmi

    General fiscal deficit seen to be lower at 5.8% in FY19 against 6.4% in FY18

    Narrowing in bad-loans ratio should help boost capital expenditure cycle

The survey prepared by Chief Economic Adviser Krishnamurthy Subramanian flagged headwinds that the economy might face in its pursuit to become the world's fifth largest economy.

It also detailed reforms road map needed to fulfil Modi's goal of more than doubling the size of the economy to USD 5 trillion by 2024.

The survey, which traditionally has chapters on macro economy as well as industry and different sectors and the outlook, comes a day ahead of Finance Minister Nirmala Sitharaman presents the first budget of the Modi 2.0 government.

"Looking forward with excitement to table my first - and the new Government's first - Economic Survey in Parliament on Thursday. #EcoSurvey2019", he tweeted.

It comes at a time when the economy is facing headwinds in manufacturing and agriculture sectors that saw growth rate slowing down to 5-year low of 5.8 per cent in the January-March quarter.