Economic growth to rebound to 6 to 6.5% in next financial year: Economic Survey

New Delhi : India's economic growth is expected to "strongly rebound" to 6-6.5 per cent in the next financial year (2020-21) from 5% recorded this financial year, said the Economic Survey this year.

The Economic Survey 2019-20 tabled in the Parliament on Friday said that there are tentative signs of reforming manufacturing activity and global trade, which is likely to have positive effect on the growth of economy in the next fiscal year.

The survey claimed that the government's thrust on affordable housing, 'Make in India', reduction in corporate taxes and improvement in ease of doing business in India would be some key factors behind the growth.

However, it mentioned that there is a downward risk on the economy due to external factors like global trade problems, escalation of US Iran geopolitical tensions.

"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.

"GDP growth of India should strongly rebound in 2020-21 and more so on a low statistical base of 5 per cent growth in 2019-2020," said the survey tabled by Finance Minister Nirmala Sitharaman.

On a net assessment of both the downside/upside risks, India's GDP is expected to grow in the range of 6.0 to 6.5 per cent in 2020-21, it said.

The document also mentioned that the merger of public financial institutions will increase the financial strength of the merged entities.

Reforms in the land and labour may further reduce business costs, said the survey.