Economic survey of India

The Economic Survey of India is an annual document of the Ministry of Finance, Government of India. The Department of Economic Affairs, Ministry of Finance presents the Survey in the Parliament every year, just before the Union Budget. It is prepared under the guidance of the Chief Economic Adviser of India.[1] This document is presented to both Houses of Parliament during the Budget Session.

The first Economic Survey of India was presented in 1950-51 as part of the Union Budget. After 1964 it was separated from the Budget and presented each year during the Budget Session before the presentation of the budget.[2] The document is non-binding. Nevertheless, is constructed and presented each year due to its significance.[2]

Content

The document is the Ministry's view on the state of the economy of the country. This document of the Ministry, the Economic Survey of India reviews the developments in the Indian economy over the past financial year, summarizes the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.[1]

Unlike the traditional Economic Survey, the Economic Survey of India for 2016–17, prepared by Chief Economic Adviser Arvind Subramanian,[3] did not have the detailed financial statistics of the Government of India.[4]

Economic Survey of India 2020

The Economic Survey 2019–20 was tabled during the Budget Session of the Parliament on 31 January 2020 by Nirmala Sitharaman, Minister of Finance.[5] The survey was prepared under Krishnamurthy Subramanian, the Chief Economic Advisor (CEA) to the Government of India. The survey is also presented by the CEA during a press meet after it is tabled in Parliament.[6][7][8]

This year the survey was printed in lavender, the same colour as the 100-rupee note, symbolizing the integration of old and new.[9] The broad theme for the survey is "Ethical Wealth Creation". The document outlines strategies for making India a $5 trillion dollar economy by 2024–25.[10][11] This includes strengthening the invisible hand of the Indian economy through trust in pro-business government intervention and trust in the markets;[12] while at the same time moving away from "pro-crony" policy and focusing on ethical wealth creation.[8][13]

The survey covers the economic performance India in 2019–20 including fiscal developments, external sector developments, monetary management and financial intermediation, inflation, sustainable development and climate change, agriculture and food management, industry and infrastructure, services sector, social infrastructure, employment and human development. Some of the key points raised by the survey were the need for grassroots entrepreneurship, pro-business and pro-market differentiation, policies that do not undermine the markets, job and growth creation, improving the ease of doing business in India, creation of early warning health system for the NBFC sector, privatization and thalinomics.[14]

Ethical wealth creation

The importance of "Ethical Wealth Creation" as a basis for the economy is emphasized upon. Reference to the Arthashastra, Thirukural and The Wealth of Nations is made. Through these texts, the Survey documents that ideas of wealth creation are rooted in India's rich traditions. The Survey notes that India's past dominance in economic matters was not by chance, but design.[13]

Highlights

Some of the key points of the Economic Survey 2019–20 are:[5]

  • The survey projects India's growth at 6–6.5% in the next fiscal year starting from 1 April 2020.[15]
  • The survey provides facts to show that India's GDP figures are genuine.[13]
  • The industrial growth for the current year has been listed as 2.5% while the agricultural growth is 2.8%.[15]
  • Total formal employment has increased from 2011–12. About 2.6 crore new jobs were created between 2011–12 and 2017–18.[6]
  • The survey has a section called thalinomics which shows an increase in affordability of a vegetable thali by 29% and by non-vegetarian by 18% during 2006–07 to 2019–20.[16]
    Punjabi style vegetarian thali served in a restaurant.
  • India is on a growth path that delivers sustainable development and has a holistic approach towards climate change.[5]
  • India is on track to achieve its "Nationally Determined Contributions (NDCs) under Paris Agreement in accordance with principles Common but Differentiated Responsibilities."[5]
  • India has emphasized on clean, enhanced and efficient energy systems, resilient urban expansion, and progressive transportation networks.
  • All urban areas of 35 states and union territories have become open-defecation free and percentage of waste processing has risen by over 40%.[5]
  • The survey also acknowledged the efforts of Unnat Jeevan by Affordable LEDs and Appliances for All (UJALA) and the launch of India's initiative—Coalition for Disaster Resilient Infrastructure.[5]
  • India has the second largest emerging green bond market in the world.
  • The survey suggests the government to systematically withdraw from certain areas of the markets.[11]
  • Easier ways to start new business, pay taxes and enforce contracts.[11]
  • The Assemble in India for the world strategy to go hand in hand with Make in India.[17]
  • The survey suggests mimicking the Chinese model for job creation.[17]
  • Band Baaja Baaraat was given reference to show Indian entrepreneurship.[17]

The survey also had quotes from Shrimad Bhagavad Gita, Rigveda, Arthashastra and Thirukural. Data for the survey relied on information from sources such as Bloomberg, IIM(B), Forbes, IMF, World Bank, RBI, Ministry of Corporate Affairs, Insolvency and Bankruptcy Board of India, the United Nations, and Wikipedia, among others.[18][19]

Economic Survey of India 2021

The Economic Survey 2020–21 was tabled during the Budget Session of the Parliament on 29 January 2021 by Nirmala Sitharaman, Minister of Finance.[20] The survey was prepared under Krishnamurthy Subramanian, the Chief Economic Advisor (CEA) to the Government of India.[20] The CEA also presents the survey during a press meet after it is tabled in Parliament.[21]

The 2020-21 survey has been conducted in the background of the COVID-19 pandemic and the economic impact of the COVID-19 pandemic in India. A foundational theme of a survey as a result of the pandemic has been "Saving Lives and Livelihoods". The survey goes on to outline epidemiological and economic research related to lockdowns and minimizing losses when uncertainty is very high, in this case the loss being the loss of human life.[22] The survey also notes how a "healthcare crisis can get transformed into an economic and social crisis".[23]

Some of the key points of the Economic Survey 2020–21 are:

  • The survey launches a 'Bare Necessities Index'.[24]
  • India is witnessing a V-shaped economic recovery.[25]
  • The survey covers over-regulation in the Indian economy. The example of the time taken to close a company in India, about 1600 days, was given.[26]
  • The survey dedicates a chapter to discuss India's sovereign credit rating.[27]
  • India needs to increase spending on research and development. India ranks 48th among 131 countries in the Global Innovation Index. However India is underperforming in innovation in terms of its GDP.[28] India's Gross Expenditure on Research and Development (GERD) is suitable according to GDP but lacks behind a number of countries.[28] India can successfully convert investment into innovation better than most countries.[28]
  • Ayushman Bharat Yojana has had positive impact in healthcare.[26]

The survey has quotes and explanatory anecdotes from Mahabharata, Rabindranath Thakur, Raghuvansham, A.P.J.Abdul Kalam, Mohandas K. Gandhi, The Jungle Book (look for the bare necessities, the simple bare necessities), a recent India versus Australia cricket match, Tirukkuṟaḷ, 3 Idiots, Malgudi Days and Martin Luther King Jr.[29][26]

See also

References
  1. "What is Economic Survey?". The Financial Express. 30 June 2019. Retrieved 30 July 2019.
  2. PTI (30 January 2020). "What is Economic Survey and Why is it Important?". News18. Retrieved 31 January 2020.
  3. "Arvind Subramanian, the Man Who Revamped Economic Survey". News18. Retrieved 30 July 2019.
  4. "Energy News Monitor". XIII (48). ORF. 15 May 2017. Retrieved 2 May 2018. Cite journal requires |journal= (help)
  5. PIB Delhi (31 January 2020). "Economic Survey of India". Press Information Bureau. Retrieved 31 January 2020.
  6. Agarwal, Nikhil (31 January 2020). "Krishnamurthy suggests a Chinese formula to create jobs". Livemint. Retrieved 31 January 2020.
  7. "Economic Survey 2020 Live Updates: Banks likely to remain risk averse unless IBC process speeds". Business Today. 31 January 2020. Retrieved 31 January 2020.
  8. "Highlights of CEA Subramanian press meet on Economic Survey: from 'wealth creation' to 'Thalinomics'". The Hindu. 31 January 2020. ISSN 0971-751X. Retrieved 31 January 2020.
  9. "Economic Survey Highlights: The good, the bad and the ugly". The Economic Times. 31 January 2020. Retrieved 31 January 2020.
  10. Srivats, K. R. (31 January 2020). "Economic Survey sets the tone for Budget 2020". The Hindu Business Line. Retrieved 31 January 2020.
  11. "Economic Survey 2019-20 highlights". Livemint. 31 January 2020. Retrieved 31 January 2020.
  12. Xavier, John (31 January 2020). "Economic Survey 2019-20 highlights: Back to Adam Smith's Invisible Hand". The Hindu. ISSN 0971-751X. Retrieved 31 January 2020.
  13. Ministry of Finance (31 January 2020). "Theme of the Economic Survey 2019-20 - Enable Markets, Promote 'Pro-Business' Policies and Strengthen 'Trust' in the Economy". Press Information Bureau. Retrieved 1 February 2020.
  14. Ministry of Finance (31 January 2020). "Key Highlights of Economic Survey 2019-20". Press Information Bureau. Archived from the original on 1 February 2020. Retrieved 1 February 2020.
  15. "Economic Survey 2020 Live: India GDP to grow at 6-6.5% next year, Economic Survey says". The Times of India. Retrieved 31 January 2020.
  16. "Economic Survey 2020: Veg thali affordability improves by 29%; non-veg by 18% during 2006-07 to 2019-20". The Times of India. 31 January 2020. Retrieved 31 January 2020.
  17. "5 things about India you probably didn't know before today's Economic Survey". The Economic Times. 31 January 2020. Retrieved 31 January 2020.
  18. Press Trust of India (31 January 2020). "Economic Survey sources data from Wikipedia, other private entities". India Today. Retrieved 6 February 2020.
  19. "Economic Survey 2019-20 sources data from Wikipedia, other private entities". The Hindu. 31 January 2020.
  20. "Economic Survey: GDP growth seen rebounding at 11% in 2021-22". mint. 29 January 2021. Retrieved 29 January 2021.
  21. Ghosh, Poulomi, ed. (29 January 2021). "Budget 2021: Economic Survey 2020-21 to be presented today". Hindustan Times. Retrieved 29 January 2021.
  22. "Economic Survey of India 2020-21: Saving Lives and Livelihoods Amidst a Once-in-a-Century Crisis (Chapter 1)" (PDF). Ministry of Finance, Government of India. 29 January 2021.
  23. "Economic Survey 2021-21: Healthcare takes centre stage, finally (Chapter 5)" (PDF). Ministry of Finance, Government of India. 29 January 2021. p. 174.
  24. Noronha, Peter, ed. (29 January 2021). "Economic Survey Launches Bare Necessities Index". NDTV.com. Retrieved 29 January 2021.
  25. Chakraborty, Chiranjivi (29 January 2021). "Economic Survey 2021: India's V-shape recovery supported by vaccine drive". The Economic Times. Retrieved 29 January 2021.
  26. "Economic Survey 2021 updates | India's GDP is estimated to contract by 7.7%". The Hindu. 29 January 2021. ISSN 0971-751X. Retrieved 29 January 2021.
  27. Gill, Prabhjote (29 January 2021). "India's Chief Economic Advisor trains his guns on global rating agencies". Business Insider. Retrieved 29 January 2021.
  28. "Economic Survey: India needs to up its gross expenditure on R&D from 0.7% to 2% of GDP". The Economic Times. 29 January 2021. Retrieved 29 January 2021.
  29. Shaikh, Mohammed (29 January 2021). "Economic Survey 2021 Quotes From 'The Jungle Book' To Highlight Progress In Access To 'bare Necessities'". Moneycontrol. Retrieved 29 January 2021.
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