Key points of the Economic Study 2018-19.
NEW DELHI: Minister of Finance Nirmala Sitharaman launched the Economic Survey 2018-19 in Parliament on Thursday, a day before presenting its first annual budget.
The Economic Survey suggested that India's GDP (gross domestic product) is projected to grow at a rate of 7 percent in fiscal year 2019-20. Prepared by the Chief Economic Advisor, Krishnamurthy Subramanian, he set the ambitious agenda of applying the principles of behavioral economics to achieve and sustain truth gross domestic product (GDP) growth of 8 percent, to make India an economy of $ 5 billion for 2024-25.
Here are few highlights of the Economic Survey 2018-19 :
1) The survey is based on traditional thinking. Consider that the economy is in a virtuous or vicious circle and never in balance.
2) Citing the example of China, K Subramanian said that investment as a percentage of GDP should be more than 30 percent. He added that the government should start investing about 35 percent. Investment, especially private investment, is the key driver that drives demand, builds capacity, increases labor productivity, introduces new technologies, allows creative destruction , and it generates jobs.
3) The survey requested predictable actions from policymakers and the use of labels such as Stagnation instead of Increase to categorize various policies as a measure to reduce the uncertainty of economic policies and ensure a stable investment climate .
4) Marginal cost The amount of data has decreased exponentially, while its marginal benefit to society has increased considerably, according to the survey. It strives to create data as a public good while considering the implications of privacy and the inherent equity of the data that is used.
CEA rejects the assertions of Arvind Subramanian, says difficult to create a wrong narrative Allow me to tell you from my own observation that India is an economy where there are many points of contact for politics and in the six months that I was part of the government, I could see it from nearby places because there are several points of contact for politics, it is very difficult to deal with to create a narrative that is different from the truth, K Subramanian said when asked about concerns about the credibility of the data.
5) Qualifying the highways as a catalyst for economic growth, the survey said that private investment in the sector is still late, as investors are interested in putting their money in the short term. Although investment in highways has grown more than three times to Rs 1.58 lakh crore in 2018-19, the availability of funds to finance large projects remains a bottleneck, the survey added.
6) The survey suggested that the private sector be granted access to select databases for commercial use at a cost, to relieve pressure on government finances. He also recommended the sale of some data sets to analysis agencies to help them predict demand, discover untapped markets or innovate new products. A complete chapter has been dedicated to the data where it is affirmed that the data of the people, by the people, by the people, must become the mantra of the government.
7) The deregulation of labor law restrictions can generate significantly more jobs in the economy, according to the key document that refers to the example of Rajasthan, where labor reforms were introduced in 2014.
8) The survey indicates that the Indian economy is prepared to witness a sharp slowdown in population growth in the next two decades. Population projection at national and state level until 20141 shows that India has entered the next stage of demographic transition . This is mainly due to the rapid decrease in Total fertility rate (TFR) in recent decades, which is expected to be below replacement fertility level by 2021.
9) Another key suggestion given by the survey is to invoke the doctrine of the pious obligation, as well as to combine the principles of behavioral economics with the spiritual norm to deal with tax evasion and voluntary breaches.
10) The survey also highlighted the vision of the mobility of electric vehicles in the country, stating that EVs have enormous potential not only because they are friendly to the environment but also because India can emerge as a hub for the electric vehicle market. EV, thus generating opportunities for employment and growth.
11) India continues to lag behind in the indicator to enforce contracts, rising from a range of 164 to 163 in the last Report on Ease of Doing Business, 2018. The survey suggested eliminating the delay in court by reducing the number of holidays and appoint more judges to improve the productivity of the judicial system. According to the survey, there are 3.5 million pending cases in the judicial system, many of which are concentrated in district and subordinate courts.
12) The survey described the substantial progress made by the government in the empowerment of women, social protection schemes, education, health, training and employment by initiating many plans for these sectors. Several programs, such as Beti Bachao, Beti Padhao (BBBP), Ujjwala Plan, Poshan Abhiyaan, Pradhan Mantri Matra Vandara Yojana, etc., have begun to incorporate women and make women active agents of change in society, according to the survey.
13) The Economic Survey described the progress made in the Swachh Bharat Mission (SBM) that began in 2014 to achieve universal sanitation coverage until October 2, 2019. More than 9.5 million toilets have been built in all the country and 564,658 villages have been declared. Free defecation free (ODF).
14) The survey suggested that policies should be designed that benefit farmers by improving water use. The focus should shift from the productivity of the land to the productivity of the irrigation water and the push must be the micro-irrigation that can improve the efficiency of water use, he said.
(With contributions from the agency)