ECONOMIC SURVEY 2019-20 By ICE Rajkot
The Union Minister for
Finance & Corporate Affairs, Smt. Nirmala Sitharaman presented the Economic
Survey 2019-20 in the Parliament today. The Key Highlights of the Economic
Survey 2019-20 are as follows:
Wealth
Creation: The Invisible Hand Supported by the Hand of Trust
- India’s dominance as global economic power for
three-fourths of economic history manifests by design.
- Kautilya’s Arthashastra postulates the role of prices
in an economy (Spengler, 1971).
- Historically, Indian economy relied on the invisible
hand of the market with the support of the hand of trust:
- o Invisible hand of the market reflected in
openness in economic transactions.
- o Hand of trust appealed to ethical and
philosophical dimensions.
- Post-liberalisation, Indian economy supports both
pillars of the economic model advocated in our traditional thinking.
- Survey illustrates enormous benefits accruing from
enabling the invisible hand of the market.
- Exponential rise in India’s GDP and GDP per capita
post-liberalisation coincides with wealth generation.
- Survey shows that the liberalized sectors grew
significantly faster than the closed ones.
- Need for the hand of trust to complement the invisible
hand, illustrated by financial sector performance during 2011-13.
- Survey posits that India’s aspiration to become a $5
trillion economy depends critically on:
- o Strengthening the invisible hand of the market.
- o Supporting it with the hand of trust.
- Strengthening the invisible hand by promoting
pro-business policies to:
- Provide equal opportunities for new entrants.
- Enable fair competition and ease doing business.
- Eliminate policies unnecessarily undermining
markets through government intervention.
- Enable trade for job creation.
- Efficiently scale up the banking sector.
- Introducing the idea of trust as a public good,
which gets enhanced with greater use.
- Survey suggests that policies must empower transparency
and effective enforcement using data and technology.
ECONOMIC SURVEY 2019-20
By ICE Rajkot
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