Industry chambers Thursday termed the 7 per cent GDP growth for 2019-20 pegged by the Economic Survey a 'pragmatic target' that pointed towards a cautious optimism about the economy on the back of investment revival and rural consumption.
CII and Assocham said in order to clock 8 per cent growth to achieve the objective of becoming a USD 5-trillion economy by 2024-25, concerted effort is required to drive private investment, enhance consumption and address difficult issues like liquidity concerns of NBFCs.
"The 7 per cent growth pegged by the Economic Survey for 2019-20 is a pragmatic target and with the right policy levers in place, we can step up growth to sustain an average growth rate of 8 per cent over the next five years," CII Director General Chandrajit Banerjee said in a statement.
He also agreed with the Survey's key prognosis that for sustaining growth at 8 per cent, investment would need to be the key driver for heralding simultaneous growth in demand, jobs, exports and productivity.
"Concerted effort is required to drive an improvement in private investment along with robust consumption to lift growth in the current fiscal from a multi-year low of 6.8 per cent posted in 2018-19," Banerjee said.
Expressing similar views, ASSOCHAM President B K Goenka said the 7 per cent growth projections for the current fiscal, "point towards a cautious optimism about the economy".
"The positives in the Economic Survey do give us hope to ride over some of the challenges faced by the economy. Some of the difficult issues like the liquidity concerns of NBFCs and the impact on the consumption would require bold moves by the government and the RBI," he added.
Goenka also said the focus on direct transfers to farmers and greater attention to agriculture infrastructure would raise the rural income and demand, giving a boost to growth.
"However, monsoon would be a key factor to watch," he added.
Stressing on economic policy uncertainty that has been underlined by the Survey as one of the key factors impinging on investment potential, Banerjee said an index on the same must be created to track and monitor it at the highest level on a quarterly basis.
"This in turn will increase transparency on economic policy in the country," he added.
Goenka on the other hand said global headwinds, as highlighted in the Survey, would need to be tackled well, as the threat of protectionism is real in the key economies of the world.
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