8% annual growth needed for GDP to touch $5 trn by FY25: Economic Survey

Economic Survey says India must 'shift gears', get into 'virtuous cycle driven by investment'.

Challenging the traditional theory of economic growth based on equilibrium and silo macro parameters, Chief Economic Advisor Krishnamurthy Subramanian in his maiden Economic Survey for 2018-19, released on Thursday, outlined a model based on constant disequilibrium and complementariness in investments, savings, job creation, demand, exports, and economic growth.

Based on this model, Subramanian explained a strategy to make the economy grow 8 per cent a year, which is needed for gross domestic product (GDP) to touch $5 trillion by 2024-25 as envisaged by Prime Minister Narendra Modi. 

For the current fiscal year (2019-20 or FY20), he pegged growth at 7