The Economic
Survey of India is the annual report of the Finance Ministry. The survey is a
detailed report of the country's economic performance during the past one year.
The Economic Survey is prepared under the guidance of Chief Economic Adviser
and is presented in both the houses of Parliament. As a usual practice, the
Union Budget and the Economic Survey of India are presented a day before the
union budget.
The Survey
analyses the trends in agricultural and industrial production, infrastructure,
employment, money supply, prices, imports, exports, foreign exchange reserves
and other relevant economic factors, which have a bearing on growth and require
attention in the Budget.
This
year the Economic Survey focuses on two main aspect
1.
Wealth creation for 130 Crore Indians and
2. Frameworks for a multi-dimensional strategy to achieve
a USD 5 trillion economy by 2025.
Through ease of
doing business, Job Creation, Increased Exports and many more.
Here
are the Highlights of Economic Survey
1) Economy
·
Projected GDP growth for 2020-21 is 6-6.5 %
·
Inflation increased from 3.7 per cent in 2018-19 to
4.1 per cent in 2019-20
2) Infrastructure
India further needed to spend around $1.4 trillion on infrastructure to
remove the constraints in growth as: Power shortages, inadequate transport and Poor
connectivity
Total investment in roads & highways has gone up more than 3 times
during five year period of 2014-15 to 2018-19.
3) Jobs
Present Status -
2.62 crore new jobs created between 2011-12 and 2017-18
Female Workforce- Increase
in regular employment of women in 2017-18 over 2011-12 – 8%
Bright Future - India
can create well-paid 4 crore jobs by 2025 and 8 crore by 2030 by integrating “assemble in India for the world”
into government’s Make in India.
It will be Achieve
by adopting China Model to impart employment to its huge population Labor-intensive
and Export route. The future initiative is Provide Training to them
through:
ü Network of women
Industrial Training Institutes
ü National &
Regional Vocational Training Institutes
4) Banking
According to the
Survey, In 2019, RBI has reduced the repo rate by 135 basis points (bps) in
five successive rate cuts but the existing borrowers are not benefited from
the Reserve Bank of India's (RBI) repo rate cut throughout the year 2019-20.
New Initiative
• Suggested to
provide ESOPs to public sector bank employees to enable them to become owners
in the banks.
• Use Big Data,
Artificial Intelligence & Machine Learning to make better lending
decisions.
• Use Fintech across
all banking functions.
5) Export
Future Projection
is that India can raise its share to about 3.5 % by 2025 and 6 % by 2030 by integrating “Assemble in
India for the world” into Make in India.
Top export items are Petroleum
products, precious stones, Gold, drug formulations & biological. Largest export
destinations: USA, UAE, China, Hong Kong.
Slowdown of world
output had an impact on reducing the export to GDP ratio.
6) Agriculture
& Industrial Growth
ü Agriculture sector
to grow in coming financial year – 2.8%
ü Current year
growth estimated as 2.9%.
Industrial growth
in 2019-20 is estimated at 2.5 per cent
7) Tax
Payers
FY20 tax
collections lower than estimates
Ø Taxpayers money
invested in PSBs by the government suffered a huge loss in 2019. According to
Economic Survey over Rs. 4,30,000 crore of taxpayers money is invested in PSBs
as Government’s equity.
Ø On an average,
every rupee invested in PSBs suffered a loss of Rs 23 paise.
8) Ease
of doing business
In World Bank’s
Doing Business rankings
- A jump of 79 positions to 63 in 2019 from 142 in 2014
- Promotion of pro-business policies
- 1.24 lakh new firms created in 2018, an increase of about 80 % from about 70,000 in 2014
- The best places to set up a business in India: Delhi, Mizoram, Uttar Pradesh, Kerala, Andaman & Nicobar Islands, Haryana
9) Railways
Indian Railways
carried 840 cr passengers & 120 cr tons of freight which makes it
World’s largest
passenger carrier and fourth-largest freight carrier.
10)
Tourism
According to the
Survey,
· ·
Foreign tourist arrivals to India on e-visas, which
are available for 169 countries,
· · Have increased from 4.45 lakh in 2015 to 23.69 lakh in
2018
· · Stood at 21.75 lakh in January-October 2019,
· · Resulting nearly 21 per cent year-on-year growth in
the tourism sector
11)
Housing Sector
Housing prices
remain elevated
Greater home sales
can clean up Bank, NBFC balance sheet
• Under Pradhan
Mantri Awaas Yojana- Gramin 47.33 Lakh Houses Completed Per Year in 2018-19
• Under Swachh
Bharat Mission- Gramin - 10 Crore Toilets Built in Rural Areas Since 2014
12)
Thali
• Economic Survey
have turned to the thali to try and illustrate the impact of inflation on a
nation’s life
• In India,
affordability of vegetarian 'thalis' improved more compared to non-vegetarian
'thalis' in last 13 years.
• Affordability of
vegetarian 'thalis' improved by 29 per cent while that for non-vegetarian
'thalis' by 18 per cent from 2006-07 to 2019-20.
• As a result, an
average household of five individuals that eats two vegetarian 'thalis' a day,
gained around Rs 10,887, on average per year, while a non-vegetarian household
gained Rs 11,787, on average per year.
13)
NBFC
The chapter 8 of
the Survey, titled 'Financial fragility in the NBFC sector,' summarise the NBFC
crisis.
Steps towards
Improvement
ü A dynamic health
index (Health Score) is constructed
ü that captures
these risks and can be used as an early warning system to anticipate liquidity
crisis in an NBFC.
ü Policy makers can
use this tool to monitor, regulate and avert financial fragility in the NBFC
sector
14)
Fiscal Deficit
·
The government's fiscal deficit touched 132.4% of the
full-year target at December-end mainly due to slower pace of revenue
collections.
·
The government aims to restrict the gap at 3.3% of the
GDP
Others
The average time
taken for resolution of stressed assets has come down to 340 days since the
insolvency law came into force three years ago compared to around 4.3 years
taken earlier, according to the Economic Survey.
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