Economic Survey 2020 Analysis

Economic Survey- Chapter IV- Undermining Markets: When Government Intervention Hurts More Than It Helps

Undermining Markets: When Government Intervention Hurts More Than It Helps   Fact:  Index of economic freedom is brought out by the heritage foundation. India wascategorized as ‘mostly unfree’ with a scoreof 55.2 in 2019 ranking the Indian economy129th among 186 countries, i.e., in thebottom 30 per cent of countries. Fact: the Global Economic Freedom Index, which is brought out by the Fraser Institute, measureeconomic freedom as the freedom of choice enjoyed by individuals in acquiring and using economic goods and resources.In the Index of Global Economic Freedom too, India ranks 79th among 162 countries with 108th rank in business regulation. ... Read more

Chapter 3- Pro-Business versus Pro-Crony- Economic Survey 2020 Analysis

  F1:          The diversity of sectors in the sensex steadily increased over time following market reforms. It shoes less concentration of wealth in few firms and diversification of firms post liberalisation.   F2:    Benefit of liberalisation can be gauged from the democratisation of the firms. Now the ratio of size of Biggest/ smallest firm is just 12. In 1991 it was just 100.   C1:    Creative destruction create wealth in an economy. It is a process of Industrial mutation that incessantly( continuously) revolutionises the economic structure from within, continuously destroying the old one and creating a new one.   C2:    ... Read more

Chapter 2- Entrepreneurship – Economic Survey 2020 Analysis

Entrepreneurship and Wealth Creation at the Grassroots   C1:    Entrepreneurship intensity is the new firms registered per year per 1000 workers. It was    just 0.10 which is very low for the manufacturing sector. But in the case of service sector there is comparative advantage. F1: A 10% increase in the registration of new firms per district yields a 1.8%  increase in GDP. F2: Entrepreneur activity are more evenly balanced in agriculture sector in comparison to other sector Conclusion:   Emphasis has to be on new firm creation.   C2:    More liberal laws means more number of form creation and ... Read more

Chapter 1- Wealth Creation- Economic Survey 2020 Analysis

Chapter 1: Wealth Creation: The Invisible Hand Supported by the Hand of Trust   Importance of Wealth creation: It lead to efficient and more utilisation of raw material. It lead to increase in the aggregate demand in the economy. Increase in the Direct tax flows Increase in the salaries of employees working in an ecosystem with expanding wealth. Increase in foreign exchange survey. Increase in the return on investment.   Wealth creation through the Invisible hands of the market How and examples to prove that: Formulation of right policies and schemes. Commerceand the pursuit of prosperity is an intrinsicpart of ... Read more