Economic Survey 2020: Ahead of Budget 2020, the Economic Survey 2019-20 by Chief Economic Advisor KV Subramanian has pegged the GDP growth at 6-6.5% for FY21. For India to achieve the $5 trillion economy dream, the Economic Survey 2020 has advocated “pro-business” policies and ethical wealth creation, along with allowing a freer hand to markets. As is the case every year, the Economic Survey brings to light some interesting and some startling facts about the Indian economy. Sample this; India has only 1 bank in the list of global top 100! That’s a telling fact for an economy which was till a few quarters back the world’s fastest growing! Another interesting point to note is that the Economic Survey rubbishes the popular opinion that India’s GDP growth is overestimated! Every 5 years, one-third of Sensex firms are churned out! Finally, add to the “menu” a thali, or rather Thalinomics! Here are the top 5 startling facts from Economic Survey 2020, you wouldn’t want to miss:
1. Thalinomics: There is economics behind everything, and a food thali is no different. The Economic Survey 2020 highlights that the a thali has become more affordable over years for the common man. The Economic Survey notes that the absolute price of a vegetarian thali has come down substantially since 2015-16, and increased in 2019, in line with the economic environment.
According to the Economic Survey 2020, there has been a gain of Rs 10887 per year for an average household with 5 people that eats 2 vegetarian thalis in a day. The gain has been Rs 11787 a year on an average for a non-vegetarian eating household!
2. Concerns of over-estimation of India’s GDP are unfounded! The Economic Survey states that statistically and analytically there is no evidence of mis-estimation of India’s GDP growth. Any model that incorrectly over-estimates India’s GDP growth by 2.77% after 2011 also ends up mis-estimating the growth rate over the same time period for 51 other countries!
3. Banking benchmarks: India may have grown to become the world’s 5th largest economy, yet its banking sector has little to celebrate. The Economic Survey 2020 notes that India has only one bank in the list of global top 100. That tells a sad tale, especially as countries like Finland, Norway and Denmark, which are a fraction of India’s size also have one bank each in the list! Singapore and Sweden, again a fraction of India in terms of size of the economy, have thrice the number! The Economic Survey also states that India’s Public Sector Banks are inefficient compared to their peer groups.
4. Ease of Doing Business: India’s airports are world-standard! The Economic Survey commends India for making major strides in the Ease of Doing Business rankings in a few years time. However, it points to several areas where there is tremendous scope of improvement. For example, while you can register a property in New Zealand in just 3.5 days, it takes 49 days in Delhi and 68 in Mumbai! China performs well with just 9 days.
Another eyeopener is the number of days it takes for an exports consignment out of India to reach the destination. According to a study cited in the Economic Survey, it takes an apparels consignment from Delhi to US around 41 days, out of which 19 days are in India alone! The process flow for imports are more efficient than exports. One ray of hope is that imports and exports of electronics via Bengaluru airport has been found to be world-class! Hence the Economic Survey 2020 advocates that the processes at India’s airports should be emulated at the sea-ports.
5. India can create crores of well-paid jobs! The Economic Survey 2020 reveals an apt fact that the ongoing international trade environment presents India with an unprecedented chance to have a China-like job growth story. India can follow the export-led labour-intensive growth model to create unparalleled job opportunities for its youth. The Economic Survey advocates combining “make in India” with “Assemble in India” to create as many as 4 crore well-paid jobs by 2025 and 8 crore by 2030.