Economic survey

An Economic Survey, is the Ministry of Finance’s flagship document presented in the Parliament ahead of the Union Budget. The Economic Survey provides information about the Indian economy over the past year. The Economic Survey holds significance as it makes the common people aware about the state of economic affairs of the country and key economic decisions of the government which impact their lives in a considerable way. It also recommends policy changes to the government and contains forecasts about the economic growth of the country and the reasons outlining the projection. As per Chief Economic Advisor Krishnamurthy V Subramanian, the lavender colour refers to the new Rs 100 note with the old note, symbolizing the blending of the old and the new.

This year's economic survey is set against the backdrop of the economy being at rock bottom. India's economic growth is expected to strongly rebound in FY21 to 6 to 6.5 per cent, as per the survey. This year's survey presented certain aspects like Thalinomocs which is the economics behind a thali of food in India. The affordability has improved over time, indicating improved welfare of the common person. Affordability of vegetarian Thalis improved 29 per cent from 2006-07 to 2019-20 while that for non-vegetarian Thalis by 18 per cent.

The survey also highlighted the 12.2 % cumulative annual growth rate of new firms in the formal sector during 2014-18, compared to 3.8 % during 2006-2014. About 1.24 lakh new firms created in 2018, an increase of about 80 % from about 70,000 in 2014. Survey said that along with efforts for generating additional employment, special focus has been on improving quality of jobs and formalisation of the economy. In absolute terms, there was a significant jump of around 2.62 crore new jobs with 1.21 crore in rural areas and 1.39 crore in urban areas in this category. Industrial growth was estimated at 2.5% and Agriculture at 2.8%. 

One of the most interesting chapters is the debate on bias in GDP growth estimates. The conclusion that models that incorrectly overestimate GDP growth at 2.7% for India post 2011 also misestimates GDP growth for the same period for 51 out of 95 countries in the sample including countries like UK, Germany and Singapore needs deep reflection. 

 To achieve Modi govt’s $ 5 trillion economy ambition, Economic Survey put the spotlight on its theme of ethical wealth creation. To conclude, the survey has given a holistic view of economy and the possible trajectory going forward. 

Sources: 

Economic Survey 2019-20 

The Economic Times

Press Information Bureau,Govt.of India

The Hindu Business Line 

Financial Express