Nirmala Sitharaman, Finance Minister, tabled the Economic Survey of India 2020 in the Parliament on Friday. It pegged FY21 GDP growth at 6 to 6.5 per cent. Industrial growth was estimated at 2.5% and Agriculture at 2.8%. The survey highlighted the fact that 2.62 crore new jobs were created in rural and urban areas between 2011-12 and 2017-18. Finance Minister Nirmala Sitharaman will be presenting the Budget 2020 on February 1, 2020 to make the public aware of the government finances and estimated revenue and expenditure for 2020-21.
India’s Overall Economic Performance in 2019-20: GDP, Inflation, Fiscal Developments, GST
Wealth Creation: Invisible Hand Supported by Hand of Trust
The Economic Survey talks about the need to bring openness in the market for the creation of wealth through increased investment. In light of this, the survey points towards an Invisible Hand that is supported by the Hand of Trust. It presents an amalgamation of old and new; old in terms of ancient Indian tradition and new suggests the use of FinTech in Indian Public Sector Banks.
It calls for strengthening this invisible hand through:
Entrepreneurship and Wealth Creation
Creation of Jobs and Growth
The Economic Survey calls for the integration of “Assemble in India” with “Make in India” to create more jobs and accelerate growth. The survey seeks to:
Targeting Ease of Doing Business
India was ranked at 63rd position in World Bank’s Doing Business 2019 rankings, a jump of 79 positions from 142nd rank in 2014. However, the economy is still trailing in several parameters such as Ease of Starting Business, Paying Taxes, Registering Property and Enforcing Contracts.
The Economic Survey calls for close coordination between the Logistics Divisions of Union Ministry of Commerce and Industry, Union Ministry of Shipping, Central Board of Indirect Taxes and Customs and the port authorities. There are some sectors that require a more focused approach such as the tourism sector, manufacturing sector and others.
Golden jubilee of Bank Nationalisation
The year 2019 marked the golden jubilee year of Bank Nationalisation. The Survey points out that the growth of Indian Banking Sector has not been proportionate with the overall growth of the economy. So far, only one Indian bank has made it to the list of Global Top 100 Banks. In 2019, a Rupee investment in public sector banks (PSBs) led to a loss of 23 paise on an average.
The Survey calls for making PSBs more efficient through:
Privatisation and Wealth Creation
The Economic Survey 2020 calls for privatization to boost job and wealth creation. It examines the before and after the performance of over 10 CPSEs that underwent strategic disinvestment. The Strategic disinvestment in BPCL has led to an increase of over Rs. 30,000 crore wealth in India. Collectively, the net profit, net worth, return on assets (ROA) & equity (ROE) have improved notably. The more aggressive disinvestment is suggested for higher profitability.
Thalinomics: Economics of Plate of Food in India
This year, the Survey throws a light upon the price paid by a person for a Thali in India anywhere. The prices of a vegetarian Thali have declined sharply since 2015-16; however, this price increased in 2019-20. During 2006 – 2020, the affordability of Indian vegetarian Thalis improved by 29% and affordability of non-vegetarian Indian Thali improved by 18%.
Monetary Policy & Financial Intermediation
Prices and Inflation
Sustainable Development and Climate Change
Agriculture and Food Management
Industry and Infrastructure
Employment, Social Infrastructure and Human Development
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