The Economic Survey 2018-19 was tabled in the Parliament today, a day before the Union Budget. This was the first Economic Survey of the NDA-2 government, headed by Prime Minister Narendra Modi. The Economic Survey (2018-19) has been prepared by the Chief Economic Advisor (CEA) Krishnamurthy V Subramanian.
The Economic Survey is prepared on the vision of ‘blue-sky thinking’ to take India towards 5 Trillion Dollar economy by 2024-25. The theme of this year’s Economic Survey is ‘to enable shifting gears to accelerate and sustain a real GDP growth rate of 8% and thereby achieve the vision of 5 trillion economy’.
Let’s have a look at the key highlights from the Economic Survey:
- The survey predicts a 7% GDP growth rate in Financial Year 2020 on stable macroeconomic conditions. The survey also sees general fiscal deficit at 5.8% in Financial Year 2019.
- Investment is the key driver of simultaneous growth in demand, jobs, exports, and productivity.
- Policy for real people, not robots: Behavioral Economics of ‘Nudge’. Key Principles of behavioural economics: Emphasising the beneficial social norm, changing the default option and repeated reinforcements.
- Reorientation of policies for MSME growth: “Nourishing Dwarfs to become Giants”. MSMEs need to be freed from shackles that convert them into dwarfs. MSMEs need to be seen as a source of innovation, growth and job creation. The policies should enable them to grow, create greater profits for their owners and contribute to job creation and productivity in the economy.
- Policymakers must ensure that actions are predictable. Policy making needs Clear vision, strategic blueprint, tactical tools for constant recalibration.
- Constant recalibration based on real-time data. Data must be created as a public good ‘of the people, by the people, for the people’.
- Effective use of technology for welfare schemes like MGNREGS. The success shows government schemes can make a difference on the ground with skilful use of technology.
- India moving from ‘Swachh Bharat’ to ‘Sundar Bharat’ via ‘Sundar Bharat’.
- Inclusive growth through affordable, reliable and sustainable energy.
- Minimum wages system to be redesigned for Inclusive Growth.
- From ‘Give it up’ for the LPG subsidy to ‘Think about the subsidy’ and from ‘tax evasion’ to ‘tax compliance’.
