FY21 GDP growth pegged at 6-6.5%

FY21 GDP growth pegged at 6-6.5%

The Economic Survey 2020 has pegged India's economic growth at 6-6.5 percent in 2020-21.

For FY20, gross domestic product (GDP) growth is forecast at 5 percent, the survey said.

This is in line with the Central Statistics Office's (CSO) projection of 5 percent GDP growth in FY20.

Growth resurgence is expected to begin in the second half of FY20, the survey said.

"On a net assessment, it appears that the upside risks should prevail, particularly when the government, with a strong mandate, has the capacity to deliver expeditiously on reforms," the survey said.

The survey pointed out that 2019 was a "difficult year" for the global economy, saying that growth is at its lowest since the global financial crisis in 2019.

"The government must use its strong mandate to deliver expeditiously on reforms, which will enable the economy to strongly rebound in 2020-21," the survey said.

The survey also pointed out that concerns of mis-estimation of GDP are "unfounded", since they are not supported by data.

The survey did acknowledge that given the importance of GDP growth, the recent debate about India's GDP estimation is crucial.

"The recent debate about whether India’s GDP is correctly estimated following the revision in estimation methodology in 2011 is extremely significant," the report said.