Economic Survey primer: Here are short notes on key economic policy issues
July 22, 2024
The Survey says the idea of economic globalisation has run its course and it may not be reversed fully
A few nuggets from the survey:
China dominates
The 522-page Economic Survey 2023-24 mentions China 132 times. In contrast, the FY23 Survey, also authored by Chief Economic Advisor (CEA) V Anantha Nageswaran, mentioned China only 48 times in the 414-page report. The FY24 Survey said between the last Economic survey published in January 2023 and this one, big changes are afoot in the geopolitical environment. “The global backdrop for India’s march towards Viksit Bharat in 2047 could not be more different from what it was during the rise of China between 1980 and 2015. Then, globalisation was at the cusp of its long expansion… Concerns over climate change and global warming were not so pervasive or grave then as they are now. Fourth, the advent of Artificial Intelligence casts a huge pall of uncertainty as to its impact on workers across all skill levels – low, semi and high”
Sanskrit verse makes a comeback
KV Subramanian as CEA used to vociferously quote Sanskrit shlokas in the Surveys that he authored. Nageswaran didn’t mention any in his first Survey for 2022-23. However, in his latest and second Survey for 2023-24, Nageswaran invokes Ishopanishad that enjoins to let go of (renounce) possessions, be free, and enjoy that freedom. “Power is a prized possession of governments. They can let go of at least some of it and enjoy the lightness it creates in both the governed and the governing,” Nageswaran writes in his preface to the Survey.
End of globalisation?
The Survey says the idea of economic globalisation has run its course and it may not be reversed fully. “It will continue to face obstacles as economic policies worldwide pivot to the promotion of national champions for reasons too well-known to bear repetition here. Along with the peaking of globalisation, there is also a rethinking of the role of government in national economic strategy as inequality, poverty, and indebtedness have become pressing issues in the aftermath of the Covid pandemic. The clamour for easy answers to these global and generational challenges has provided an excuse for interventionist policies despite their poor empirical record in achieving prosperous or more equal societies,” the Survey said.
States choosing capex over freebies
While states have often been accused of spending too much on freebies, the Survey highlighted that the quality of spending by state governments has improved in recent years, with state governments focusing more on capex. According to the Survey, the capex of 23 states as a per cent of GDP improved from 2.2 in FY20 to 2.6 in FY24.
Success stories
The survey lauds many success stories across the country, holding them as case studies to be emulated by others. In Baramulla, severe acute malnutrition and moderate acute malnutrition rates declined to near-zero levels through monitoring with Poshan tracker tabs. Gumla in Jharkhand tackled anaemia and malnutrition by promoting the cultivation of ragi, empowering women in self-help groups through livelihood opportunities. Similarly, a recent spate of industrial investment has led to significant job creation for women in Krishnagiri, a remote district in Tamil Nadu, catalysing a positive socio-economic chain reaction. The steel utensils bank in Siddhipet district of Telangana was also lauded for successfully addressing the challenge of managing plastic waste, particularly disposable utensils. Under Jal Jeevan Mission, Sailam village in Mizoram transformed from water scarce to a water-sufficient model village with a 24x7 community-managed water supply system.
[The Business Standard]
