Key Highlights of Economic Survey 2019-20

Guest | Last updated: 29 July 2020

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The Economic Survey 2019-20, presented by Finance Minister Nirmala Sitharaman, emphasises wealth creation through a balance of market forces ('invisible hand') and trust ('hand of trust'). It highlights the significant growth in new firm creation since 2014, particularly at the grassroots level, and advocates for pro-business policies over pro-crony ones to foster a $5 trillion economy. The survey also explores strategies for job creation through specialization in network products and improving ease of doing business.

The Union Minister for Finance Corporate Affairs, Smt. Nirmala Sitharaman presented the Economic Survey 2019-20 in the Parliament today. The Key Highlights of the Economic Survey 2019-20 are as follows: Wealth Creation: The Invisible Hand Supported by the Hand of Trust India's domina

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FAQ :

The two main pillars for India's economic growth are the 'invisible hand' of the market, supported by the 'hand of trust'.

Since 2014, the creation of new firms in India has increased dramatically, with a cumulative annual growth rate of 12.2% in the formal sector, compared to 3.8% previously. Around 1.24 lakh new firms were created in 2018, an 80% increase from 2014.

The survey suggests that while government intervention isn't always bad, some well-intentioned interventions can undermine market efficiency and wealth creation. It recommends examining and eliminating outdated interventions that are no longer relevant in the current economic landscape.

The survey suggests integrating 'Assemble in India for the world' into 'Make in India' to create jobs. By specializing in labour-intensive network products and focusing on large-scale assembly operations for export, India could create millions of well-paid jobs.

India has significantly improved its position in the World Bank's Doing Business rankings, jumping 79 places to 63rd in 2019 from 142nd in 2014. However, improvements are still needed in areas like starting a business, registering property, paying taxes, and enforcing contracts.

The survey concludes that concerns about India's GDP growth being overstated are unsubstantiated. It states that correctly specified models, which account for various factors, do not find any misestimation of growth in India or other countries.