According to the Economic survey,the virtuous cycle of savings, investment and exports supported by a favorable demographic phase is required for sustainable growth.
The survey says that In order to trigger this virtuous cycle,we have to rely on some of FDI.They can come in and start investment and once this happens,that will enhance productivity which creates jobs,fosters exports and thereby demand.
The survey has also said that the government is expected to further ease the foreign direct investment(FDI) norms with a view to bridge the widening current account deficit(CAD).
Current account deficit is one of the key indicators of an economy’s health.It measures the difference between the value of the goods and services a country imports and the value of its exports.
The survey also stated that among the major economies running current account deficit,India is the largest foreign exchange reserve holder and eighth-largest among all countries of the world.
Further, talking about India’s exports, it said the composition of exports and import basket has almost remained unchanged in 2018-19 over 2017-18.