Finance Minister Nirmala Sitharaman today tabled the Economic Survey 2020 on the first day of the Budget session of the Parliament. The Economic Survey estimated this year’s GDP growth at 5% and projected the country’s growth at 6%-6.5% in the financial year 2020-21.
The Financial Survey which is presented a day ahead of the General Budget is a flagship annual report of the Finance Ministry. It consists of an annual assessment of the country’s economic performance in the 12 months.
- India’s dominance as global economic power for three-fourths of economic history manifests by design.
- Survey illustrates enormous benefits accruing from enabling the invisible hand of the market.
- Exponential rise in India’s GDP and GDP per capita post-liberalisation coincides with wealth generation.
- Survey shows that the liberalized sectors grew significantly faster than the closed ones.
- Survey posits that India’s aspiration to become a $5 trillion economy depends critically on:
- Provide equal opportunities for new entrants.
- Enable fair competition and ease doing business.
- Eliminate policies unnecessarily undermining markets through government intervention.
- Enable trade for job creation.
- Efficiently scale-up the banking sector.
The Survey says that India’s aspiration of becoming a $5 trillion economy depends critically on (i) Promoting ‘pro-business’ policy that unleashes the power of competitive markets to generate wealth, (ii) Weaning away from ‘pro-crony’ policy that may favour specific private interests, especially powerful incumbents.
It also says that “wealth creation as an idea and wealth creators as its medium becomes the central theme of the Economic Survey.”
Creating Jobs and Growth by Specializing in Network Products:
- Survey says India has unprecedented opportunity to chart a China-like, labour-intensive, export trajectory.
- By integrating “Assemble in India for the world” into Make in India, India can:
- Raise its export market share to about 3.5 % by 2025 and 6 % by 2030.
- Create 4 crore well-paid jobs by 2025 and 8 crores by 2030.
- Exports of network products can provide one-quarter of the increase in value-added required for making India a $5 trillion economy by 2025.
Photo Credit: India TV