Eco Survey 2021
View: Survey bats for countercyclical fiscal policyFor all the hardships that year 2020 had, the Economic Survey 2020-21 is mostly on expected lines. The Part II of the Survey presents the economic assessment of the year 2020-21.- Lockdown saved more than 100,000 lives claims Economic SurveyUttar Pradesh, Gujarat and Bihar restricted the case spread the best; Kerala, Telangana and Andhra Pradesh saved the most lives; Maharashtra under-performed the most in restricting the spread of cases and in saving lives.
- Ratings are moody, not fair; poor, not standard: Economic SurveyArguing that a sovereign rating primarily reflects a country’s willingness and ability to repay its debt, the Survey said that India’s ratings are "unfair" because it has "zero sovereign default history".
- Economic Survey bats for big expansion of govt spendingThe economy had been slowing even before the pandemic: growth was 6.5% in 2018-19 and 4% in 2019-20. The pandemic shrank the economy by 7.7% in 2020-21.
- IBC has changed debtor-creditor dynamicsThe Insolvency and Bankruptcy Code has hence brought about significant behavioural changes among the creditors and debtors thereby redefining debtor-creditor relationship.
- Ethical wealth creation is way forward: Economic Survey“Given India’s stage of development, India must continue to focus on economic growth to lift the poor out of poverty by expanding the overall pie,” the Survey said. This, it said, will enable redistribution since economic growth and inequality converge in terms of their effects on socio-economic indicators in India.
- Growth Gyaan: Tips on raising women’s participation in workforce, and how digitization may reduce inequalities in educationBesides, non-discriminatory practices at the workplace like pay and career progression are needed to help draw more females to join the labour force. Female labour force participation stood at 26.5% in 2018-19 compared to 80.3% for males.
- Recovery play: Economy will take two years to surpass pre-pandemic levelsFollowing a strong 10-12% rebound in FY22, survey looks ahead assuming a 6.5% rise in FY23 and 7% GDP growth in FY24
- India’s economic recovery like cricket team’s performance down under: CEAIndia’s V-shaped recovery was like the Indian cricket team’s performance in Australia which bounced from an all-time low score of 36 runs to clinch the four-match Test series 2-1.
- Fiscal push or reforms: What should it be? Fine print holds cluesImportantly, and perhaps more so after the pandemic, it calls for increasing investment in health infrastructure, by boosting public spending from 1% of GDP currently to 2.5-3.0% of GDP, along with the setting up of a sectoral regulator in light of the market failures due to information asymmetry.
- Economic Survey: Healthcare needs a shot of fundsIt observed that India has one of the highest levels of OOPE in the world, contributing directly to the high incidence of catastrophic expenditures and poverty.
- Staying on track amid a pandemic, says Economic Adviser Rajiv MishraThe SOE describes the policy dilemma of lives versus livelihoods faced globally at the beginning of the pandemic forcing countries to choose between the two. Deploying the containment strategy India initially chose lives but soon enough livelihoods as well once the system to handle the pandemic was in place to hasten the unlocking of the economy.
- Economic Survey 2021: Covid fight on cover, structural change insideBreaking with years of tradition, Part 1 is devoted to key conceptual and policy issues – how India fought covid, the debt/GDP debate, the “unfairness” of Western credit rating agencies, inequality, loan forbearance, innovation, Ayushman Bharat and constructing a Bare Necessities Index.
- All hands need to be on deck to shake off effects of Covid-19: Sajjid Z Chinoy, JP MorganFiscal deficits will bulge all over the world, with the IMF forecasting emerging market deficits more than doubling from below 5% of GDP pre-Covid to above 10% of GDP in 2020.
- Gap between resource availability, requirement pose challenge in NDC implementation: Eco SurveyIn the NDC, the country has also sought to achieve 40 per cent of cumulative electric power installed capacity from non-fossil fuel sources by 2030.
- Eco Survey captures India's fight against COVID-19, its strong economic fundamentals: PM ModiIt emphasises on the huge potential for economic growth, the importance of further scaling up innovation and the way ahead in key areas like health, he said in a tweet.
- India needs to focus on growth to alleviate poverty: Economic SurveyThe Survey said that unlike in advanced economies, in India, economic growth and inequality converge in terms of their effects on socio-economic indicators.
- Economic Survey calls for simplification of regulationsThe Economic Survey 2020-21 presented in Parliament on Friday said that in order to solve the problems, authorities often make attempts to reduce discretion by having evermore complex regulations, which is counterproductive.
- Economists divided over Economic Survey's projectionsEarlier in the day, Chief Economic Adviser K V Subramanian projected an 11 per cent growth for 2021-22, aided by V-shaped recovery and a 7.7 per cent contraction for the current year. It also projects a lower 6.8 per cent growth in 2022-23.
- Growth leads to debt sustainability, says Economic Survey"With the Indian context of potential high growth, the interest rate on debt paid by the Indian government has been less than India's growth rate by norm, not by exception," it said.
- India likely to post current account surplus after 17 years: Economic SurveyHowever, reversing this trend, current account balance turned into surplus (0.1 per cent of GDP) in fourth quarter 2019-20 on the back of, among others, a lower trade deficit and a sharp rise in net invisible receipts.
BUDGET-O-METER
Has the Budget ticked all the boxes that India needs to sail through this crisis?
Markets & Budget
Mithali Raj equals record of most 50 plus scores in Women's World Cup
JNPT surpasses pre-Covid traffic volume in FY22
California accuses Tesla Inc of racial discrimination in lawsuit
Aurobindo plans domestic formulation foray, sets 1000 cr sales target in next 3yrs
Expert Views
- Budget unlikely to provide momentum to Sensex
- Budget: Unleash the gold ecosystem to generate employment and exports
- Budget will have to find a balance between capital spending and borrowing
Taxes & You
PPF stays out of tax on EPF interest
High-income PF lovers not to get 8.5% gains
Tax on PF interest will change the way we invest in it: How the Budget hits your PF
Bond yields are expected to firm up further: Why you should stick to short duration mutual funds for now
Budget Debate
Did Sitharaman's budget live up to the expectations?
Budget 2021 doubled healthcare spending, made space for infrastructure and laid out a plan for divesting two PSU banks, all aimed to dig an economy out of a pandemic-induced slump. If you go by Sensex's tally today, the Budget seems to have lived up to the hype. What do you think?
Click to CommentSectors In Focus
Banking/Finance
State Bank of India expands US footprint with new branch in Texas
LIC to step up focus on non-par savings, protection products
Daksham Growth Ventures raises Rs 125 cr in first close of maiden consumer fund
IDBI Bank employees' forum opposes majority stake sale to Fairfax, seeks parliamentary rev...
India's banking sector poised for double-digit credit growth despite macroeconomic challen...
Regional rural banks to set up cybersecurity centres, develop threat intel
Banks seek relief from sustainable lending norms for FCNR(B) loans
RBI data centre to strengthen payment systems, cyber resilience
Banks see ₹5.19 lakh crore deposit outflow, credit shrinks ₹2.52 lakh crore
India commercial insurance rates fall as capacity, competition rise
Energy
Keralam to expand petrol pump checks if ethanol irregularities found
E20 petrol supplied by PSU oil firms meets prescribed quality standards: Oil Min
IOCL, BPCL, HPCL dispute Karnataka's claim of excess ethanol in petrol, seek fresh tests
Karnataka finds ethanol content above E20 limit in petrol samples, seeks action against OM...
Rajesh Power secures ₹1,629 crore order for Gujarat's power infrastructure modernisation
India needs to build up shipping capacity to cash in on cheap crude, IOC chairman says
Peak power demand falls as cooling needs ease
Kalpataru Projects International secures domestic work orders worth ₹2,349 crore
From Venezuela to Texas to Jamnagar: Marco Rubio’s dash for energy
India's data-centre capacity may surge to 24-26 GW, impact on overall power demand to rema...
Tech
From streaming to software, microdrama startups rewrite their growth pitch
Anthropic unveils Fable 5.2 and Mythos 5.2, its most powerful AI models yet: All you need ...
Anthropic plans IPO live stream with Dario Amodei, JPMorgan CEO Jamie Dimon
Who is Alice Huang, the Chinese businesswoman tied to Nvidia's CEO?
Philanthropists are backing AI for public good
BPO jobs on a seesaw as bots call the shots
Indian organisations on edge as sites fail to Captcha AI intruders
Explained: Why Nvidia shares dropped 4% in overnight trade
Linguistic barriers & legacy tech slow India’s VoiceAI shift
TheLiverDoc takes another dig at Deepinder Goyal over promised ‘detailed note’ on Temple’s...
Auto
Piyush Goyal meets Skoda Auto Volkswagen India CEO; talks focus on EV push, exports
Tenneco India explores diversifying beyond auto sector, eyes M&A
Karnataka, Uber discuss passenger safety, regulatory issues and urban transport
Auto sector sees strong Dhanteras deliveries, expects momentum to continue till Diwali
Maruti Suzuki to set up 12 automated driving licence test tracks in Telangana
Tata Motors PV says CERT-In-flagged app vulnerabilities addressed through updates
Tata Sons Chairman Chandrasekaran meets Italian PM Meloni after Iveco acquisition
Mercedes plans bigger India play with greater localisation of parts
Indian car buyers trade up selectively as CNG, EVs gain ground over fuel; SUV growth resha...
Tata Motors-Iveco will focus on building a global CV business: N Chandrasekaran
FMCG
Hindustan Unilever increases prices of Surf Excel, Rin, and Wheel products by up to 11% du...
Dabur CEO flags rural demand risks from rising commodity inflation, weak rains
Festive shopping: Home, kitchen products drive 81% jump in D2C sales to Rs 1,328 crore
Consumer goods cos turn to cost cutting amid higher input prices to protect demand, revive...
The great Indian biscuit battle begins: Can Reliance crack the code?
Britannia Industries plans further price hikes amid food inflation impacting margins and b...
Honasa looks beyond Mamaearth as younger brands grow over 45% and strengthen its beauty po...
Britannia CEO plays down Reliance's pricing threat in India biscuit market
Trusted names, new game: India's FMCG giants reload old guns for changing tastes
Emami bets on winter demand as inflation keeps a lid on growth
MSME
Budget hopes for FinTech: Boost credit flow for MSMEs
Budget can follow ‘ande ka funda’ path to tap the potential in beekeeping, horticulture, a...
Hit hardest by pandemic, travel & hospitality sector wants tax incentives, policy support ...
1% inspiration, 99% perspiration: Budget should incentivise turning jugaad into innovation
Can Budget convert India’s demographic dividend into skill dividend?
Budget: As Chinese stainless steel imports surge, Indian MSMEs feel the heat
Vocational skills development should be a key thrust area for Budget 2022
Expectations from the Azadi ka Amrit Mahotsav Budget
MSMEs largely outside the ambit of PLI scheme, many small businesses left out of ECLGS. Ca...
Logistics industry wants govt to expedite connectivity projects in Budget 2022, expect fir...
Common Man's Budget
Union Budget 2021: 10 things consumers should know
Budget fine print: AC and refrigerator to be costlier; gold and silver to be cheaper
Salary components: Trades and tactics to use
Five things about home loan tax incentives you should know
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Details on Budget
Nirmala Sitharaman's third Budget doubled spending on healthcare, made space for infrastructure and divestment and lifted caps on foreigners investing in its insurance market to help revive an economy bludgeoned by the coronavirus pandemic. Belying expectations, Sitharaman's Budget did not give any income tax relief or made any changes in tax slabs or rates. There was no Covid tax as well. Senior citizens above 75 years of age with only pension and interest income would not be required to file income tax returns. Dalal Street lauded the Budget with the BSE Sensex gaining over 2,000 points.