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on to high growth path in the coming
years. It is a welcome development
that effect of demonetization, a bad
economics, is behind us and a difficult
but important tax reform, GST, is taking
Economic Survey 2017-18 firm root.
The fact that the economic growth
Rings Warning Bells has started looking up from the second
half of this financial year 2017-18,
government should take steps address
The first Economic Survey prepared after Modi Government came to power challenges of education, employment
in 2014 said India is in a sweet spot and it can only grow from there on when and farm distress as pointed out by
other top and emerging economies are faltering —By KR Sudhaman the economic survey so that the
government do not fritter away yet
another opportunity to move to a high
Economic Survey, presented to ASSESSMENT OF THE ECONOMIC growth path.
Parliament ahead of budget every year SURVEY
Finance Minister Arun Jaitley has
is seen as a report card of The first economic survey prepared
said that in the last few years, the
Government’s performance on the after Modi Government came to power
economic survey has become a must
Indian Economy. This year too it is no in 2014 said India is in a sweet spot
read and most read document on
different but there is one change, its and it can only grow from there on when
Indian Economy… Universities have
presentation and production has
included it in their syllabuses… in
improved for the better. addition to the review of the
IMPORTANCE OF ECONOMIC In Brief
SURVEY Economy, the Survey contains in-
 Economy Survey is seen as depth analysis, serious research as
As Economic Survey is prepared by
a report card of well as new policy ideas. If this is
economists, it is not taken very true, Jaitley should set the tone by
Government’s performance
seriously while preparing the General implementing several policy ideas
Budget, which is prepared by on the Indian Economy. suggested by the survey.
politicians with the help of bureaucrats.  Politicians see the budget as Now that ill effects of
Politicians see the budget as yet yet another tool to tweak the
demonetization and GST are over,
another tool to tweak the economy to economy to suit their government should move rapidly to fix
suit their constituency and win constituency. the economy. Farm distress and
elections and certainly not as an  Effect of demonetization is sagging rural economy should get the
instrument to rapidly achieve socio-
behind us and GST is taking much needed informal economy hit by
economic development of the country.
firm root. largely demonetization is kick-started
Indian Economy has certainly
 Macro-economic stability is so that job creation is boosted. This
progressed well since independence
critical for sustainable also calls for massive investment in
but unfortunately big ticket growth and education to improve quality and make
growth.
development has not happened barring it job-oriented. So far we have
when major reforms were initiated in  State governments are achieved quantity in education which
1991, compelled by the economic splurging the huge flow of had helped in vastly improving literacy
crisis at that point of time. money from the Centre.
but now the education should be job
This explains the fact that India has
relevant. Skill development in
missed several buses to get on to high
particular should become job-relevant
growth path, that too inclusive, to other top and emerging economies are
and region-relevant. Macro-economic
rapidly become a developed economy faltering. Four years down the line, we
stability is critical for sustainable
with virtually no poverty. Even if 30-40 find that Indian economy had slowed
growth that too at a time oil prices and
per cent of what had been said in down and faltering while other faltering
other global commodity prices are
successive economic surveys had been economies have started growing faster.
rising. So government should shun
implemented every year, the Indian So apparently there is something
from excessive populism in view of the
economy would have been in a much wrong with us and something good is
general elections next year so that the
better position. But unfortunately the happening to others. It is therefore
path of fiscal consolidation and
budgets had ensured there was only high time that the government took
inflation control are not ignored
crony socialism or crony capitalism in Economic Survey seriously so as to
considering that the Economy is seeing
the country and not balanced economic ensure there is some correlation
broad-based revival.
development for the common good of between it and the budget so that the
all. economy is put back on track to get (Contd on page 57)
March 2018 Competition Wizard 55