Home >Budget 2019 >Economic Survey >Economic Survey 2020 takes a cue from China for creation of 8 crore jobs

NEW DELHI : Finance Minister Nirmala Sitharaman today tabled the Economic Survey 2019-20 in the Parliament after a joint address by President Ram Nath Kovind to both Lok Sabha and Rajya Sabha. Prepared by Chief Economic Advisor Krishnamurthy Subramanian, the Economic Survey gives a review of the developments in the economy over the previous 12 months and also gives an outlook for the next financial year.

LIVE Updates of Economic Survey 2020:

-Imports and exports of electronics through Bengaluru airport is world-class: Economic Survey.

-"There has been a slowdown in the Indian economy. Part of it is because of the global economy itself slowing down. You can see the world, the advanced economies, and emerging economies have all slowed down in 2019 as compared to the average for 2014 and 2018," Subramanian said at the press conference.

-"There is need to bring in a distinction between hoarding and storage of food grains, this will play an important role in doubling farmers' income," Subramanian said.

- Ranjan Chakravarty, Economist and Product Strategist, MSE: "This Economic Survey is absolutely one of the best ever. The analysis is scrupulously fair, the detailed diagnosis, the cataloging of the systemic issues and the prognosis are all on point and exactly correct. We applaud Dr. Subramanian for a fantastic job and endorse the short term 5% and medium-term 6.5% growth forecasts. We have ourselves forecast that recovery is coming in 2H 2020 and this Economic Survey independently verifies it."

-To achieve the target of doubling farmers' income by 2022, the Economic Survey on Friday said there is an urgent need to address some of the basic challenges like credit, insurance coverage and irrigation facilities in the agriculture and its allied sectors.

-CEA KV Subramanian said the impact of coronavirus on the Indian economy should be very marginal. "I don't think there will be that big an impact on the economy," he said.

-Concerns of a misestimated Indian GDP are unsubstantiated by the data and are thus unfounded: Economic Survey report.

-We can create 4 crore jobs by 2025 and 8 crore jobs by 2030 by focussing on exports.

-"It seems like we have hit a trough (in the business cycle) now and there should be an uptick," CEA said.

-CEA presents plan for India to get into the top 50 of Ease of Doing Business ranking.

-To make India a $5 trillion economy by 2024–2025, India needs to spend about $1.4 trillion ( 100 lakh crore) during the period on infrastructure so that lack of infrastructure does not become a constraint to the growth of Indian economy.

-The change in composition of Sensex shows that pro-business policies give a level playing field, providing opportunities to all and keeping incumbents on their toes.

-Subramanian says all groups of countries have slowed down and in a globalized economy, India has also felt the effect.

- Rumki Majumdar, Economist, Deloitte India, said the data scan by the economic survey suggests that the economic slowdown may be tapering with green shoots visible in a few quarters of the economy. "All eyes are now on tomorrow’s budget as the government walks a tightrope of balancing growth and inflation without raising fiscal deficit much," she said.

-CEA Subramnaian said the economic slowdown since 2017 has been due to the lagged effect of reduced investment from 2013 which occurred due to credit boom-bust.

-Ten new ideas introduced by the Economic Survey: Wealth creation benefits all, markets enable wealth creation, trust is a public good that increases with use, grassroot entrepreneuers create wealth in their districts, pro-business policies give equal opportunity, remove anachronistic government interventions, job creation by "Assemble in India for the world", changes in EODB for India to rank in top 50, banking sector sub-scale compared to economy, Thalinomics.

-"Headline Consumer Price Index (CPI) inflation has increased from 3.7 per cent in 2018-19 (April to December 2018) to 4.1 per cent in 2019-20 for the corresponding period. Wholesale Price Index (WPI) inflation has seen an increase between 2015-16 and 2018-19. It, however, fell from 4.7 per cent in 2018-19 (April to December 2018) to 1.5 per cent during 2019-20 in the same period," says the Survey.

-"India's march towards achieving Sustainable Development Goals (SDGs) is firmly anchored in investing in human capital and inclusive growth," Economic Survey 2019-20 said.

-GST collections grew by 4.1% for the Centre during April-November 2019.

-Affordability of vegetarian 'thalis' improved by 29 per cent while that of non-vegetarian by 18 per cent during the 2006-07 and 2019-20 period: Survey

-Ranen Banerjee, Leader Economic Advisory Services, PwC India, said “Attaining the projected growth rate of 6-6.5% will be challenging. The demand cycle is yet to pick up in India. Global growth including India is likely to be significantly impacted by the Corona virus factor taking cues from history of impacts from the SARS outbreak. We can possibly infer a significantly higher government spending in the next fiscal from these projected growth numbers and will have to await the Budget announcements tomorrow for the same."

-CEA Krishnamurthy Subramanian said: We have a slowdown in the Indian economy, part of it is because of the global economy slowing down in 2019.

-Economic Advisor Krishnamurthy starts his press conference after the Economy Survey presented in Lok Sabha today. Economic Survey's theme this year is wealth creation.

-Gender disparity in India’s labour market widened due to decline in female labour force participation especially in rural areas, said Economic Survey. Around 60 % of productive age (15-59) group engaged in full time domestic duties.

-Total formal employment in the economy increased from 8 % in 2011-12 to 9.98 % in 2017-18, reported Economic Survey

-Around 2.62 crore new jobs were created in rural and urban areas between 2011-12 and 2017-18 among regular wage and salaried employees, said the Economic Survey 2019-20

-Exports of network products can provide one-quarter of the increase in value added required for making India a $5 trillion economy by 2025, said Economic Survey

-India has unprecedented opportunity to chart a China-like, labour-intensive, export trajectory, said Economic Survey

-"The Economic survey 2020 projects a growth revival in FY 2021 but suggests that the government may have to incur expansionary policy to support growth. As has been argued earlier, the government has to prioritise growth. Once the momentum picks up, the government can take action to consolidate its expenses. Several economies have done this in the past. For instance, Germany—a strong proponent of a balanced budget—incurred a strong fiscal deficit during 2008-09 to help the economy come out of the crisis. The US fiscal deficit shot up to 8.1 percent as the US government sprang into action to pull the economy out of recession," said Rumki Majumdar, Economist, Deloitte India

-Economic Survey said that India’s aspiration of becoming a $5 trillion economy depends on two things

1) Promoting ‘pro-business’ policy that unleashes the power of competitive markets to generate wealth.

2) Weaning away from ‘pro-crony’ policy that may favour specific private interests, especially powerful incumbents.

-Chief Economic Advisor Krishnamurthy Subramanian praised his team for "working hard" and having prepared the "second economic survey in the span of six months".

-"The government must use its strong mandate to deliver expeditiously on reforms, which will enable the economy to strongly rebound in 2020-21," the Economic Survey said.

-It also called for improving governance in public sector banks and the need for more disclosure of information to build trust. It also talks about dwarfism in the banking sector.

-Economic Survey calls for measures to make it easier to start new business, register property, pay taxes, enforce contracts.

-Government interventions seem to be ineffective in stabilising prices of commodities such as onions: Survey

-Economic Survey calls for more reforms for making it easier to do business in country.

-Weak global growth impacting India as well as investment slowdown due to financial sector issues had led to growth dropping to a decade low in current fiscal, the survey said, adding 5% growth projected for 2019-20 is the lowest it could fall for now.

-The Economic Survey said for wealth to be distributed, it first has to be created and called for looking at wealth creators with respect.

-Economic Survey advocates 10 new ideas that benefit markets as well as the economy.

-Economic Survey this year has been printed in lavender colour - the same as the colour of the new 100 rupee currency note, the oldest currency note in circulation in the country.

-Economic Survey puts current fiscal year 2019-20's growth rate at 5%.

- Economic Survey says fiscal deficit target for current fiscal may need to be relaxed to revive growth.

-Economic Survey projects economic growth at 6-6.5% in fiscal year starting April 1.

-Congress leader and former finance minister P. Chidambaram said the President's address did not talk about the macro-economic situation, unemployment, rising inflation, etc.

-Prime Minister Narendra Modi said the budget will be focussed on how India can benefit from the world economic situation to make the country's financial condition even more strong.

-GST has promoted transparency in trade and commerce through use of technology: Kovind.

-In his speech, President Ram Nath Kovind told the Parliament that India has become the world's third largest startup ecosystem with 27,000 new startups.

-Chief Economic Advisor Krishnamurthy Subramanian said his team worked hard to deliver economic survey report in just six months. "Last time, we worked hard. Our team has done a lot of hard work this time around also. The team has prepared the second economic survey in six months. The entire credit goes to them," Subramanian told ANI.

-The government is expected to widen its budget deficit target for the year through March to 3.8% of gross domestic product from a planned 3.3%.

-The Budget session of the Parliament is being held in two phases -- from January 31 to February 11, and from March 2 to April 3. Finance Minister Nirmala Sitharaman will present her second Union Budget on February 1 and may attempt to reverse the economic slowdown that has gripped India.

-The government had estimated GDP expansion at 5% for the current financial year 2019-20, which would be the slowest pace since the global financial crisis of 2008-9.

-The rupee appreciated by 17 paise to 71.41 against the US dollar in early trade on Friday ahead of the release of the government's Economic Survey later in the day.

-Following the release of the Economic Survey in the Parliament, CEA Dr KV Subramanian will address a press conference at 1:45 pm.

-Economic Survey is likely to project growth of 6% to 6.5% for the next financial year, according to a Reuters report.

-Both the BSE Sensex and Nifty 50 were in the red before the release of the Economic Survey. Sensex was down over 100 points at 40,808.61 while the Nifty went below the 12,000 mark, down more than 40 points.

-Thousands of bank employees are sitting on a two-day bank strike from today to demand a pay hike of 20%. The strike is timed with the beginning of the Budget session of the parliament.

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