Global economy in 2018 had a difficult year with world output growth falling to 3.6% in 2018. Growth rate of world output is projected to fall further to 3.3% in 2019 as growth of both advanced economies, emerging & developing economies are expected to decline. Growth of the Indian economy moderated in 2018-19 with a growth of 6.8%. Yet, India continued to be the fastest growing major economy in the world. India maintained its macroeconomic stability by containing inflation within 4% & had manageable CAD to GDP ratio. The manufacturing sector had higher growth in 2018-19 while the growth in agriculture sector witnessed tapering. Growth in investment has bottomed out & has started to recover since 2017-18. In fact, growth in fixed investment picked up to 10% in 2018-19. Net FDI inflows grew by 14.2% in 2018-19. Capital expenditure of Central Government grew by 15.1% in 2018-19 leading to increase in share of capital expenditure in total expenditure. Given the macroeconomic situation and the structural reforms being undertaken by the government, the economy is projected to grow at 7% in 2019-20. [ABSTRACT FROM AUTHOR]