PIB NEWS Analysis 05th July 2019 : Economic Survey Special

1)RISAT-2B:- Earth Observation Satellite : RISAT-2B is an indigenously developed Synthetic Aperture Radar (SAR) Imaging Satellite operating in the X-band.  The highly agile satellite is capable of operating in different modes including Very High Resolution RADAR imaging modes of 1m x 0.5m resolution and 0.5m x 0.3m resolution.  In order to increase the number of imaging opportunities, the satellite is placed in an inclined orbit. As, RISAT-2B is a Radar Imaging satellite; it can be operated effectively during day / night / all weather conditions.

The Satellite will be used for high resolution spot imaging of locations of interest.  Apart from this, data from RISAT-2B will also be utilized for agriculture applications and disaster management support.

2)Tokyo Olympics in 2020.(summer Olympics)
2024 : Paris, France (Summer Olympics)
2022 : Winter Olympics in Beijing, China

3)ECONOMIC SURVEY KEY POINTS:-

Economic Survey Outlines strategic Blueprint to achieve Prime Minister’s Vision for $5 trillion Economy.

The theme of the Survey is about enabling a “shifting of gears” to sustained economic growth for objective of US$5 trillion by 2024-25. To achieve the vision of #Economy@5trillion, India needs to shift its gears to accelerate and sustain a real GDP growth rate of 8%.

Survey recommends creating a virtuous cycle encompassing private investment, jobs, exports and demand.

Survey lays out an ambitious agenda for inducing behavioural change through the principles of Behavioural economics.

This year’s Survey also utilizes advances in Behavioural Economics to address issues of gender equality, a healthy and a beautiful India, savings, tax compliance and credit quality. It recognizes the role of social norms in the success of initiatives such as Beti Bacho Beti Padhao, Swacch Bharat Mission and Jan Dhan Yojana to effect behavioral change.

Sky Blue cover of Survey reflects ‘ Blue sky thinking’- an unfettered approach for an appropriate economic model for India.

4)State of the Economy in 2018-19 - A Macro View:- 

1. GDP to grow at 7% in 2019-20 due to growth of investment & consumption.
2. Service exports enhanced to Rs. 14.389 lac cr in 2018-19 from Rs. 0.746 lac cr in 2000-01
3. India’s share in world service exports increased from 2% in 2005 to 3.5 % in 2017
4. India’s foreign exchange reserves comfortably placed at US $ 422.2 billion in June 2019.
5. FDI inflows growing at a high rate since 2015-16 in services, automobiles and chemicals Credit to both, large and micro, small and medium enterprises has seen pickup in growth.
6. Net Foreign Direct Investment (FDI) inflows grew by 14.2 per cent in 2018-19.
7. India continues to remain the fastest growing major economy in the world in 2018-19, despite a slight moderation in its GDP growth from 7.2 per cent in 2017-18 to 6.8 per cent in 2018-19. On the other hand, the world output growth declined from 3.8 per cent in 2017 to 3.6 per cent in 2018.
8. Consumption has always been a strong and major driver of growth in the economy. Although the share of private consumption in GDP remains high, the pattern of consumption has undergone some changes over time- from essentials to luxuries and from goods to services.
9. In 2017-18, investment rate in services sector became the highest. Investment rate in agriculture still continues to lag behind and now is half the investment rate in the industry sector. Simultaneously, there has been a decline in savings rate as well, with the household sector entirely contributing to the decline. Household savings declined from 23.6 % in 2011-12 to 17.2 % in 2017-18.
10. The trend of growth of exports and imports was different in 2018-19 in rupee and US dollar terms. While growth of both export and import declined in US$ terms, it increased in rupee terms (at current prices) in 2018-19. This happened due to the depreciation of rupee vis-a vis US dollar in 2018-19.
11. Real growth in ‘Agriculture & allied’ sector was lower in 2018-19 at 2.9 per cent, after two years of good agriculture growth.
12. Growth in the industry accelerated during 2018-19 on the strength of improving manufacturing and construction activity, which have more than offset the declaration in the other two sub sectors, ‘Mining & quarrying’ and ‘Electricity, gas, water supply & other utility services’.

5)India undertaking one of the world’s largest renewable energy expansion programmes

Globally India stands 4th in wind power, 5th in solar power and 5th in overall renewable power installed capacity

The target is to achieve an installed capacity of renewable based power of 175 GW by the year 2022.

6)India's Demography : Highlighting India’s demography, the Economic Survey 2018-19 states that “India is set to witness a sharp slowdown in population growth in the next two decades.

Population projection at the national and State level upto 2041 show that India has entered the next stage of demographic transition, with population growth set to slow sharply in the next two decades.

This is mainly due to the rapid decline in the total fertility rate (TFR) in recent decades, which is expected to be below replacement level fertility by 2021.

7)Economic Survey recommends Investment in Well-Functioning Legal System, given its Potential Economic and Social Multiplier Effect:- Given the relationship between Economic Governance and the Rule of Law, in its Chapter titled “Ending Matsyanyaya: How To Ramp Up Capacity In The Lower Judiciary”, the Survey states that Contract enforcement remains the single biggest constraint to improve our Ease of Doing Business ranking. “Delays in contract enforcement and disposal resolution are arguably now the single biggest hurdle to the Ease of Doing Business in India”.

The Survey points-out that States of Uttar Pradesh, Bihar, Odisha and West Bengal need special attention, given their lower clearance rates. Hence, the Survey suggests that these States should be given priority in the appointment of additional judges.