Economic Survey 2018-19 outlines PM Modi's vision to make India $5 trillion economy

The Economic Survey 2018-19 was tabled by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman in the Parliament today. The theme of the Survey is about enabling a “shifting of gears” to sustained economic growth for objective of US$5 trillion by 2024-25. The survey stresses that India needs to grow at 8 per cent per year to reach the target set by Prime Minister Narendra Modi. “To achieve the vision of #Economy@5trillion, India needs to shift its gears to accelerate and sustain a real GDP growth rate of 8%. The Survey departs from traditional thinking by viewing the economy as being either in a virtuous or a vicious cycle, and thus never in equilibrium. Rather than viewing the national priorities of fostering economic growth, demand, exports and job creation as separate problems, the Survey views these macroeconomic phenomena as complementary to each other,” the Economic Survey vision statement reads. Here’s listing key components of India’s Economic Survey 2018-19. Blue sky thinking The cover design captures the idea of complementary inter-linkages between these macroeconomic variables using the pictorial description of several inter-linked gears. The team for Economic Survey 2018-19 has been guided by “blue sky thinking.” The Survey adopts an unfettered approach in thinking about the appropriate economic model for India. This endeavour is reflected in the sky blue cover of the Survey. Private investment main driver to growth Learning from the global financial crisis, the economy has been viewed as either in a virtuous cycle or a vicious cycle and therefore the concept of equilibrium economics has been disbanded. Second, rather than trying to tackle various economic challenges of demand, jobs, exports et cetera in silos, the Survey makes the case that these phenomena are all complimentary. Therefore, creating the virtuous cycle with investment, especially private investment, as the main driver can enable growth in each of these important macro variables. "Investment will be key driver of growth," India Chief Economic Advisor Dr KV Subramanian said in a press brief post the survey being tabled in Parliament. PM Modi’s vision In an uncertain world, three key elements are necessary: a vision, a strategic blueprint to achieve the vision, and practical tools to recalibrate constantly to the strategic blueprint. The Prime Minister has laid out the vision and Economic Survey 2018 -19 lays out the strategic blueprint to achieve that vision along with the tactical tools to stay on the path of the strategic blueprint. Among these, treating people as humans and not as robots as in classical economics, creating data as a public good, enhancing the legal system for enforcement of contracts, ensuring consistency of policy with the blueprint are some tools that have been discussed, the Survey adds. Treating people as humans and not as robots as in classical economics, creating data as a public good, enhancing the legal system for enforcement of contracts, insuring consistency of policy with the blueprint are some aspects that have been discussed in the Survey. This year’s Survey also utilizes advances in Behavioural Economics to address issues of gender equality, a healthy and a beautiful India, savings, tax compliance and credit quality. It recognizes the role of social norms in the success of initiatives such as Beti Bacho Beti Padhao, Swacch Bharat Mission and Jan Dhan Yojana to effect behavioral change. Indian economy has performed well The Economic Survey states that India’s economy has performed well during the last 5 years and Government has ensured that the benefits of growth and macroeconomic stability reached the bottom of the pyramid of society. Aadhaar making huge impact The Survey states that the “Aadhaar Act, 2016 has enabled creation of pathways for the benefits of growth to reach the bottom of socio-economy ladder.” The Survey states that the Pradhan Mantri Jan Dhan Yojana(PMJDY) and Jan Dhan, Aadhar, Mobile (JAM) trinity further secured Direct Benefit Transfers (DBT) of over 7.3 lakh crore rupees under various schemes like Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), National Social Assistance Program(NSAP), Pradhan Mantri Awas Yojna-Gramin(PMAY-G), Pradhan Mantri Ujjwala Yojana(PMUY) etc,. Presently 55 central ministries through 370 cash-based schemes are transferring benefits under the DBT mechanism. Jobs Citing the Chinese experience, the Survey says “when examined in the full value chain, capital investment fosters job creation as capital goods production, research and development, and supply chains also generate jobs.” Dr KV Subramanian stressed that jobs are directly proportional to investment. He highlighted the Chinese model that successfully created jobs by investing more of its savings. Exports The Economic Survey emphasizes on the importance of exports for the economic growth of the country pointing out that India’s share in global exports is low and that it should focus on market share. The High-Level Advisory Group, chaired by Dr.Surjit Bhalla, submitted its report in June 2019 on how India can enhance its exports and these need to be implemented where possible.” ALSO READ | CEA Subramanian addresses media on the first Economic Survey of Modi 2.0 government ALSO READ | 7th Pay Commission: Good news for Gujarat employees! 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Economic Survey 2018-19 outlines PM Modi's vision to make India $5 trillion economy

#Economy@5trillion: Economic Survey 2018-19 presented today by Finance Minister Nirmala Sitharaman recommends creating a virtuous cycle encompassing private investment, jobs, exports and demand. The Economic Survey lays out PM Modi’s ambitious agenda of taking India’s economy to $5 trillion.