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Economic Survey 2019-2020

The Economic Survey identifies several levers for furthering wealth creation: entrepreneurship at the grassroots as reflected in new firm creation in India’s districts; promote “pro-business” policies that unleash the power of competitive markets to generate wealth as against “pro-crony” policies that may favour incumbent private interests.

The Survey makes the case that the churn created by a healthy pro-business system generates greater wealth than a static procrony system. Note that the Survey contrasts two systems; the arguments are not directed at any individual or entity. Instead, it argues for eliminating policies that undermine markets through government intervention even where it is not necessary; integrate “Assemble in India” into “Make In India” to focus on labour-intensive exports and thereby create jobs at large scale; efficiently scale up the banking sector to be proportionate to the size of the Indian economy and track the health of the shadow banking sector; use privatisation to foster efficiency. Consistent with the hand of trust supporting the invisible hand, the Survey provides careful evidence that India’s GDP growth estimates can be trusted.

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