Economic Survey 2020 Highlights: The Economic Survey 2020 was tabled in Parliament today by Finance Minister Nirmala Sitharaman. Ahead of Budget 2020 (#BudgetOnZee) presentation, the Survey projected India’s economic growth at 6 per cent to 6.5 per cent in the next financial year (’20-’21). The 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. Importantly, The Economic Survey said that growth has bottomed out.
Economic Survey 2020 Highlights:
1. Economic growth in 2020-21 compares to a projected 5 per cent expansion in 2019-20.
2. India being impacted by weak global growth as well as investment slowdown due to financial sector issues. This caused growth to drop to a decade low in current fiscal.
3. The Economic Survey said growth slipped to 4.5 per cent in the July-September quarter. Projected growth at 5 per cent for 2019-20.
4. The Economic Survey said for wealth to be distributed, it first has to be created and called for looking at wealth creators with respect.
5. For boosting growth, it called for new ideas for manufacturing such as ‘assemble in India for the world’ which will create jobs.
6. To make it easier to do business, the Survey called for more reforms and removing the red tape at ports to promote exports as well as measures for easing the start of business, register property, pay taxes and enforcing contracts.
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7. The Economic Survey 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.
8. Fiscal Deficit target needs to be increased in FY20
9. FY20 tax collection likely to be lower than expectations
10. Unnecessary spendings need to be cut down
11. The growth likely to come back on track in H2 FY20
12. The FY21 growth recovery likely to be strong due to low base
13. The subsidy needs to be brought down to increase government spending
14. Improvement in Government spending crucial for the economy
15. Likelihood of impact on growth due to a reduction in government spending
16. Improvement in overall tax collection will depend upon GST collections
17. To reduce fiscal deficit, reduction in food subsidy is a must
18. Increase in Government spending may result in private investments
19. Prices of homes very high in the country
20. The builders need to reduce home prices of unsold inventory
21. The banks and NBFCs to benefit from an increase in the sale of houses
22. Rise in inflation to impact the demand
23. Reduction in tax collections has reduced spending on government infra sector and investment
24. US-Iran tensions likely to increase crude oil prices
25. Indications of recovery in industrial production
26. Rise in crude prices could weaken Rupee
Economic Survey has advocated 10 new ideas that benefit markets as well as the economy.
1. Wealth creation benefits all
2. Markets enable wealth creation
3. Trust: a “public good that | with use”
4. Grassroot entrepreneurs create wealth
5. Pro-Business policies give equal opportunity
6. Remove anachronistic govt interventions
7. Assemble in India for the World
8. Targetting Ease of Doing Business in India
9. Banking sector sub-scale compared to economy
10. Thalinomics – The economics of food plate in India