Economic Survey 2020: CEA says should wait to see impact of measures taken to boost economy

Finance Minister Nirmala Sitharaman on Friday tabled the Economic Survey 2020 in the Parliament, a day ahead of the Union Budget on February 1.

Jan 31, 2020 8:07 PM

Economic Survey 2020 defends credibility of GDP data

The Economic Survey 2020 by Chief Economic Adviser, Krishnamurthy Subramanian has dedicated a chapter to argue that India's GDP reading is not overstated.

Jan 31, 2020 8:07 PM

Economic Survey 2020: Debt waivers as a proportion of budgets of various states##Economic Survey 2020: Debt waivers as a proportion of budgets of various states

Jan 31, 2020 4:47 PM

Economic Survey 2020: India ranks third in terms of number of new firms created##Economic Survey 2020: India ranks third in terms of number of new firms created

Economic Survey, released by the government on Friday, citing World Bank data said India ranked third in terms of number of new firms created. According to the Survey, from about 70,000 new firms created in 2014, the number has grown by about 80 percent to about 1,24,000 new firms in 2018. But, even with the rise in new firms, the procedures for starting a business in India is far behind countries such as China and New Zealand. It takes an average of 18 days to start a business in India compared to half a day in New Zealand, and nine days in China. READ MORE

Jan 31, 2020 4:27 PM

Economic Survey 2020: These key people were involved in preparing the annual document##Economic Survey 2020: These key people were involved in preparing the annual document

The Economic Survey 2020 was tabled in the Parliament on Friday, a day ahead of the presentation of the Union Budget 2020. The survey has forecast India's GDP growth for the fiscal year 2020-21 in the range of 6 percent-6.5 percent and for FY20 at 5 percent.

The Indian economic growth is expected to pick up in the second half of FY20 and a strong rebound could be seen in FY21 on a low base, according to the document.

Easing of monetary policy by the Reserve Bank of India and several measures announced by the government in the last year present green shoots for growth in H2FY20 and FY21, noted the document. READ MORE

Jan 31, 2020 4:11 PM

Economic Survey 2020 points out high drop-out rates in schools##Economic Survey 2020 points out high drop-out rates in schools

The Economic Survey, released on Friday, pointed out high drop out rates at various levels of schooling and lack of affordability in higher education as areas of concern. The survey emphasised that Samagra Shiksha 2018-19, was launched to envisage school education as a continuation from pre-school to senior secondary level to provide access to education to all. Accordingly, the government has initiated the process of formulating a new Education Policy with a focus on quality education, innovation and research. READ MORE

Jan 31, 2020 4:01 PM

Economic Survey 2020 defends credibility of GDP data##Economic Survey 2020 defends credibility of GDP data

The Economic Survey 2020 by Chief Economic Adviser, Krishnamurthy Subramanian has dedicated a chapter to argue that India's GDP reading is not overstated. His predecessor, Arvind Subramanian recently claimed that GDP growth was overestimated by 2.5 percent between 2011-12 and 2016-17.

The PMEAC then rebutted this by questioning the methodology and data collection used by the former CEA but the former CEA defended his research paper by saying that he had used a framework to validate GDP from the demand side. READ MORE

Jan 31, 2020 3:43 PM

Closing Bell: Nifty ends below 12,000 post economic survey; IT, auto stocks drag##Closing Bell: Nifty ends below 12,000 post economic survey; IT, auto stocks drag

Indian markets ended lower on Friday, dragged by metals, IT stocks, after the economic survey predicted FY20 GDP growth at 5 percent, slowest since the global financial crisis of 2008-09. Economic Survey 2020, tabled in the parliament today, projects economic growth at 6-6.5 percent in FY21, but warned it may have to miss its deficit target to revive growth. READ MORE

Jan 31, 2020 3:35 PM

Economic Survey 2020: These key people were involved in preparing the annual document

Jan 31, 2020 3:26 PM

Pronab Sen, former chief statistician on Economic Survey##Pronab Sen, former chief statistician on Economic Survey

"Talking about fiscal deficit, Sen said, “The point is as far as FY20 is concerned, there will be a breach. The real question is what it is saying about 2021 – that’s more interesting because what you have is 2 statements – one is not mentioning anything about the fiscal deficit but talking about the expansionary fiscal policy. I don’t see how you are going to have an expansion in fiscal policy without some breach of the glide path if not this year’s breach target, but having said that I don’t think that’s the issue. The issue is that is it saying anything about what the true fiscal deficit is. All it is saying that it is going to breach. If it’s going to breach only because of the giveaways that have happened in the last 3 months or so then it means you are still continuing to hide the problem under the carpet,” said Sen.

Jan 31, 2020 3:10 PM

Economic Survey 2020: Govt intervention in market hurting more than it helps##Economic Survey 2020: Govt intervention in market hurting more than it helps

India’s economic survey said intervention by the government, though well-intended, often ends up undermining the ability of markets to create wealth and leads to outcomes that are the opposite of the intentions. The survey, which forecasts growth of 6-6.5 percent in the next financial year starting April 1, gave the examples of commodities, drugs, foodgrain and debt waivers to buttress this point. READ MORE

Jan 31, 2020 2:52 PM

Economic survey 2020 presses for privatisation, says performance of PSUs improved after govt exit##Economic survey 2020 presses for privatisation, says performance of PSUs improved after govt exit

In the Economic Survey 2020 tabled on Friday, government said privatisation unlocks the potential of central Public Sector Enterprises (CPSEs) to create wealth. The aim of any privatization or disinvestment programme should be the maximisation of the government’s equity stake value, the Survey said, adding that privatised government firms performed better than their peers in their respective sectors.The survey analysed the before and after performance of 11 CPSEs that had undergone strategic disinvestment from 1999-2000 to 2003-04. READ MORE

Jan 31, 2020 2:47 PM

Economic Survey 2020: Here are the chapterwise highlights##Economic Survey 2020: Here are the chapterwise highlights

CHAPTER -01

Wealth Creation: The Invisible Hand Supported by the Hand of Trust

-Invisible hand of the market needs the supporting hand of trust

-Like wilful defaults, malpractices such as financial mis-reporting & market manipulation needs to be detected early

-Significant enhancement in quantity & quality of manpower in our regulators (CCI,RBI, SEBI, IBBI)

-Significant investments in technology and analytics needs to be made

CHAPTER -02

Entrepreneurship and Wealth Creation at the Grassroots

-Govt could explore the privatization of education to augment education capacity at all levels of education

-States must focus on enabling ease of doing business and flexible labour regulation to foster job creation

CHAPTER - 03

Pro-Business versus Pro-Crony

-Pro-crony policies has destroyed value in the economy

-Making it easy to do business furthers eventual goal of maximizing social welfare, reforms aimed in this direction must continue

CHAPTER -04

Undermining Markets: When Government Intervention Hurts More Than It Helps

-Essential Commodities Act must be abolished

-Each Dept & Ministry must systematically examine areas where the Government needlessly intervenes & undermines markets

-Full debt waiver beneficiaries consume less, save less, invest less & are less productive after the waiver vs partial beneficiaries

CHAPTER -05

Creating jobs and growth by specializing to exports in network products

-For India to become a assembly hub, imperative that import tariff rates for intermediate inputs are zero or negligible

-Need to integrate “Assemble in India for the world” into Make in India

CHAPTER -06

Targeting ease of doing business in India

-Processes of Indian airports should be adapted and replicated in sea-ports to facilitate trade

CHAPTER -07

Golden Jubilee of Bank Nationalisation: Taking Stock

-PSBs are inefficient compared to their peer groups

-In 2019, every rupee of taxpayer money invested in PSBs, on average, lost 23 paise

CHAPTER -08

Financial fragility in the NBFC sector

-Regulators can employ the Health Score methodology to detect early warning signals

-Downtrends in the Health Score can be used to trigger greater monitoring of an NBFC

-Faced with a dire liquidity crunch, regulators can use the Health Score for capital allocation

-Set prudential thresholds on extent of wholesale funding that can be permitted for firms in the shadow banking system

CHAPTER -09

Privatization and wealth creation

-The learning from the experience of Temasek Holdings Company in Singapore may be useful in this context

-The Government can transfer its stake in the listed CPSEs to a separate corporate entity

-This entity would be managed by an independent board

-Entity would be mandated to divest the Government stake in these CPSEs over a period of time

CHAPTER -10

Is India’s GDP growth rate overstated? No!

-Concerns of a misestimated Indian GDP are unsubstantiated by the data and are thus unfounded

-The need to invest in ramping up India’s statistical infrastructure is undoubted

Jan 31, 2020 2:32 PM

Economic Survey 2020: Here are CEA Krishnamurthy Subramanian's new ideas on Indian economy

Finance Minister Nirmala Sitharaman on Friday tabled the Economic Survey 2019 in Parliament. The survey, prepared by Chief Economic Advisor Krishnamurthy Subramanian.

Jan 31, 2020 2:20 PM

Economic Survey: 10% would be a realistic number for the nominal GDP growth, says Arvind Virmani##Economic Survey: 10% would be a realistic number for the nominal GDP growth, says Arvind Virmani

The Economic Survey 2020 forecast India's GDP growth to be in the range of 6 percent to 6.5 percent in the fiscal year 2020-21. The survey tabled in the Upper House on Friday believes the next fiscal is expected to pose challenges on the fiscal front. When asked if this was a ambitious or a realistic forecast, Arvind Virmani, chairman, foundation for Economic Growth and Welfare (EGROW) told CNBC-TV18, “You can expect their real target is 6 percent. The government always tries to put in a little bit of ambition. So, I think you should focus on 6 percent. It is a reasonable target to hope for but the difficulty I have is that quarterly data is not made from the ground up. It is an interpolation or an extrapolation. So, till we have the annual number, I don’t know frankly what the gross domestic product (GDP) growth is for the full year, which is yet to end,” he said.

Click or tap here to watch and read the full report

Jan 31, 2020 2:16 PM

Load more