CEA KV Subramanian lists out 10 major focus areas of Economic Survey to put economy back on track
New Delhi/IBNS: Chief Economic Adviser KV Subramanian on Friday listed the major interventions made by the Modi government to put economy on track while stating that India is undergoing economic slowdown and part of it is due to the global slowdown that started in 2019.
He said the economic survey is the blend of old and new.
He said the Economic Survey has focused on 10 points that are necessary for wealth creation.
The CEA stated that in 2019 the developing, as well as major economies, have been affected by the slowdown. Globally the economic growth lowered when compared to the averages of 2014-18 and India, too, felt that effect.
There has been a boom and bust in the share of corporate loans in non-food credit, he said. In 2013 the share of corporate loans reached their peak, after which it declined. The firms that borrowed huge sums of money in 2008-12 did not invest matching figures in 2013-17, which affected the GDP growth.
Wealth is both the cause and effect of investment, therefore, it is important for us to focus on wealth creation, he asserted.
He said the invisible hand of the market along with the invisible hand of trust leads to wealth creation.
The effort to link economics with the common man has been among the 10 focus areas discussed by Subramanian. With increasing food prices, the government will try to come up with solutions for the problems faced by the common man to ensure a plate of food for himself every day. "Thalinomics" as has been termed by the government will attempt to ease the lives of the common people of India he stated.
The Survey found that Grassroot entrepreneurs create wealth for which evidence has been drawn from 504 districts. Policies that provide equal opportunities are important for wealth creation and, therefore, the survey advocates the pro-business policies.
Realising the importance of the invisible hand of trust, the survey has advocated against the pro-crony policies which support the existing private interests, he said.
The Economic Survey against anachronistic government intervention which hampers investment. These interventions have been found to be existing in places where they are not needed at all, he said. It has also called for privatisation to improve efficiency.
Further integrating "Assemble in India for the world" with the government's Make in India campaign has been suggested for large scale job creation. This has been envisaged to boost labor-intensive industries and increase exports.
Changes in Ease of Doing business that can bring India in World Bank's top 50 Ease of Doing Business rankings. India is still lagging behind in terms of ease of starting a business, registering property, paying taxes and enforcing contracts. He said India's GDP growth can be trusted which is considered by any business before investing.
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