Economic Survey 2020 Takes a Cue from CHINA for creation of 80 million (8 Crore) Jobs - Editorial

Background Context 

Finance Minister of India, put forward the Economic Survey (evaluation) 2019-2020 in the House of Parliament thereafter a joint address by Honourable President Ram Nath Kovind to both the houses Lok Sabha and Rajya Sabha.

Economic Survey 2020 Takes a Cue from CHINA for creation of 80 million (8 Crore) Jobs

Drafted by Chief Economic Advisor, the Economic Evaluation mentions a review of the developments within the economy in the last 12 months and also gives an overview of the subsequent financial year.

The Economic Survey for 2019-2020 appears an effort driven by 20/20 lookback and experience, combined with a confident 20/20 perception or foresight for the year to come, because it expects GDP growth to appraise from the 5% estimated GDP for the current year to a newer level somewhere, between 6%-6.5% for next year.

The Survey indicates at going easy on fiscal deficit goals during a bid to prop up growth and makes a courageous and promising plan to proselytize and redeem wealth creation by entrepreneurs rather than criticizing them.

About the Economic Survey 

Ministry of Finance (India) extends an annual document popularly known to as Economic Survey which provides the particulars and features of wide variety sectors (inclusive of all segments) of the economy and comprehensive economic scenario of the country in the past years.

The Economic Survey may be denoted as expert advice to the government. Additionally, Economic Surveys also provides an outline and considerations for the year ahead.

Indias’ First Economic Survey was tabled in 1950-51   

Economic Survey had been put forward with the Union Budget till 1964 and from the year 1964 and ahead, the Economic Survey had been dealt independently from the Union Budget.

The Economic Division an integral subset of the Department of Economic Affairs drafted the Economic Survey in the Finance Ministry under the complete guidance of the Chief Economic Adviser.

When senior officers provide or dispense their needed inputs in the Ministry of Finance, the ultimate version of the Economic Survey is inspected and investigated by the Finance Secretary and eventually receives approval from the Union Minister of Finance.

Aggressive Disinvestment Target

Economic Survey has strongly advised and proposed an antagonistic and hostile goal for divestiture (disinvestment) of the Central Public Sector Enterprises.

The resolution (determination) is designated to bring higher profitability and encourage efficiency in the operations of Public Sector Units.

Additionally, disinvestment will also introduce higher competitiveness and encourage professionalism and competence in the operational customs of the organizations.

Urgent Reforms Needed in the Banking Sector 

Economic Survey proposed that Indian’s Banking Sector requires an urgent observation (attention and correctness) and much-needed reforms which will withstand, assist and support the growing economy.

The survey mentions a thriving banking sector that's led and guided by Public Sector Banks.

The survey proposes three important and key recommendations for the thriving baking sector

  1. Introduction of Fintech throughout all banking operations and functions 
  2. Ownership to strengthen efficiency (effectiveness) 
  3. Use of technological instruments such as AI, ML and Big-data to ease the operations  

Economic Survey on Employment Data 

Employment Data mentioned in the Economic Survey which advertised and showcased that, approximately 26.2 million fresh new jobs were produced in remote rural and urban cities between the year 2011-2012 and 2017-2018. 

Approximate distribution of these waged and salaried employees’ is as such …  
  • 12.1 million jobs produced and created in rural India.  
  • 12.1 million jobs produced and created in urban India. 
Of the entire number of jobs produced for salaried and waged employees; Fact-Figures advocates and showcase, 8% growth inconsistent Employment of girls and women in 2017-2018 over 2011-2012.  

These surveys claim, approximately 69.03 lakh people were tutored, coached and upskilled under Pradhan Mantri Kaushal Vikas Yojana (PMKVY). 
  • Total Jobs produced in Five years: 26.2 million (2.62 crores) 
  • Total Jobs produced in Rural Areas: 12.1 million (1.21 crore)  
  • Total Jobs produced in Urban Areas: 13.9 million (1.39 crore)  
  • The growth rate of Girls and Women employment and: 8%  
  • People tutored under PMKVY: 69.03%

Roadmap to $5 Trillion Economic Giant 

Internal content of the roadmap to the ambitious and optimistic goal to attain USD $5 Trillion Economic structure, the Economic Survey pinpointed proposed that India must shell out UDS $1.4 Trillion on Infrastructure development.  

Lack of Infrastructure was quoted as a ‘binding constraint’ (embarrassment), a great barrier for the economic progression, firstly starting from energy infrastructure, transport facilities and substandard & poor connectivity.  

To summarise the survey recommendation, the Economic Survey insist, Indias’ desire of becoming a USD $5 trillion dollar economy hangs on two things. 

  1. Encouraging the “Pro-Business” strategy that may unloose the power of competitiveness to generate wealth.  
  2. Withdraw and Discard “Pro-Crony” strategy that seems very selective towards business incumbents with special interest.  

Chief Economic Advisor of India, applauds his team for “working hard” and having drawn up the second economic survey within the time span of only 180 days (6 months).  

The government is expected to use its powerful ordinance and instructions to deliver hurriedly on reforms, which can allow the nation's economy to strongly recoil in 2020-2021. 

The survey also demands refurbishment and betterment of governance structure of public sector banks and the need for disclosure and transparent operations to create trust. It also talks about dwarfism within the banking sector.

Conclusion 

Economic Survey involves measures to ease starting a new business, property registration, taxes payments, contracts engagement and enforcement. 

Government interventions and involvement seem to be unproductive and fruitless in controlling or stabilizing prices of everyday commodities such as onions: Survey. 

Economic Survey accommodates more rectification and up-gradation for creating it effortless to start a business in the country. 

Improvised and puny global growth hampering India coupled with investment downturn, due to financial sector issues had pushed growth rate to a decade low in the current financial year, the survey mentioned, adding 5% growth rate envisioned for 2019-20 is the lowest bottom it could reach for now. 

The better and higher growth aspirations and expectations for the next year are in reality supported by the ‘conservative’ approximations.  

By this point into next year, it is expected to have some clarity (lucidity) on whether it had been the beautiful illusion or 20/20

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