The Economy Survey was tabled in the Parliament on Thursday by Union Finance Minister Nirmala Sitharaman.
The survey has predicted 7 per cent Gross Domestic Product (GDP) growth in FY20 on stable macro economic conditions. The growth projection is higher than a 5-year low economic growth of 6.8 per cent for the year ended March 31.
India needs to sustain a GDP growth rate of 8 per cent, to become a USD 5 trillion economy by 2025.
The fiscal deficit, as per the survey deteriorated to 5.8 per cent of the GDP as compared to 3.4 per cent for 2018-19 estimated in the interim Budget.
Finance Minister Nirmala Sitharaman also said that the government will face a challenge on the fiscal front following an economic slowdown impacting tax collections amid rising state expenditure on the farm sector.