Economic Survey 2019-2020: Industrial Sector Performance is key to be $5-trillion Economy

Economic Survey 2019-20 presented in the both Houses of Parliament today said in its projection that industrial sector performance is a key to achieve the target of being a $5 trillion economy. It also suggested sectorial initiatives for industrial revival.

The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman who tabled the Economic Survey 2019-20 in Parliament today said that economic events since 1991 provide powerful evidence supporting this crucial distinction.

To support its claim the Economic Survey has also provided a detailed analysis of the trends in India's infrastructure sector. It has emphasized that investment in infrastructure is necessary for growth. Power shortages, inadequate transport and poor connectivity affect overall growth performance of India. So, to achieve the target of being a GDP of five trillion dollars by 2024 - 25, India will have to spend about Rs100 lakh crore on infrastructure creation.

It also said that India's aspiration to become a $5 trillion economy depends on promoting pro-business policies, strengthening the invisible hand of the market and ease of doing business. Pro-business policies will unleash the power of competitive markets to generate wealth, on the one hand, and weaning away from a pro-crony policy that may favour specific private interests especially powerful incumbents, on the other hand.

According to the survey, there is a significant jump of around 2.62 crore new jobs with 1.21 crore in rural areas and 1.39 crore in urban areas. Over 69 lakh candidates have been trained under Pradhan Mantri Kaushal Vikas Yojana till November 2019. Besides, the Economic Survey also underscores various programmes and legislative measures that are in place to encourage female participation in the economy.

The survey also stated that India's large economy needs an efficient banking sector to support growth. It expressed that if Indian banks were proportionately large in relation to the size of the Indian economy, India should have at least six banks in the global top 100 Banks. Presently the State Bank of India which is the largest public sector bank is at the 55th rank in the list.