The Economic Survey 2019 seeks to lay out a blueprint to achieve a vision of $5 trillion economy, Chief Economic Advisor (CEA) Krishnamurthy Subramanian said at a press conference in New Delhi on Thursday.
Guided by the dictum of "blue sky thinking", the Economic Survey 2018-19 on Thursday laid out the ambitious agenda of applying principles of behavioural economics to achieve 8 percent of sustained GDP growth to make India a $5-trillion economy by 2024-25.
The Economic Survey 2018-19, tabled in Parliament, is the first for the new government, which came to power with an overwhelming mandate.
Subramanian, speaking at the conference on the survey, said that the Indian economy has grown more than other economies and added that there is a need to shift gears to grow continuously at 8 percent.
"With the aspirations that have been kindled among our predominantly young population, India stands at a historic moment when sustained high economic growth has become a national imperative," Subramanian said. 'Blue sky thinking' refers to the uninhibited approach to achieve goals.
"The Survey adopts an unfettered approach in thinking about the appropriate economic model for India. This endeavour is reflected in the sky blue cover of the Survey," the CEA said. The sky blue cover design captures the idea of complementary inter-linkages between these macroeconomic variables using the pictorial description of several inter-linked gears, he said.
"The theme that underlies this economic survey is, the sky blue colour, the colour used for the survey, captures unfettered blue sky thinking which is what we've indulged in trying to come with the idea for this survey," the CEA said.
"The Survey departs from traditional thinking by viewing the economy as being either in a virtuous or a vicious cycle and thus never in equilibrium. Rather than viewing the national priorities of fostering economic growth, demand, exports and job creation as separate problems, the Survey views these macroeconomic phenomena as complementary to each other," Subramanian said.
The CEA further said that given India's rich cultural and spiritual heritage, social norms play an important role in shaping the behaviour of each one of us. "The Survey, therefore, lays out an ambitious agenda for behavioural change by applying the principles of behavioural economics to several issues including gender equality, a healthy and beautiful India, savings, tax compliance and credit quality," he said.
KV Subramanian on #EconomicSurvey 2018-19: In an uncertain world in which we all work, there are 3 key elements critical for ensuring that policies really help in reaching common ppl. 1st, a vision that has already been provided by the PM,of a 5 trillion dollar economy by 2024-25 pic.twitter.com/34rloj0MyR — ANI (@ANI) July 4, 2019
"In an uncertain world in which we all work, there are 3 key elements critical for ensuring that policies really help in reaching common ppl. 1st, a vision that has already been provided by the PM, of a 5 trillion dollar economy by 2024-25," Subramanian was quoted as saying by ANI.
He said that in the next two decades, India will be able to avail the benefits of demographic change, which will allow the country to grow in a sustained manner at 8 percent. The CEA said that favourable demographics is a major plus for economic growth. Emphasizing on the importance of investment, Subramanian said that increase in investment will raise productivity and exports.
The survey has quoted studies showing that more than incentives offered to manufacturers and users, good charging infrastructure is key to mass adoption of electric vehicles (EVs). That is because the driving range of batteries in an electric vehicle is lower, compared to those which run on fossil fuel.
Subramanian said, firms that grow large overtime are significant contributors to employment and value. We need more focus on these firms to reap economies of scale, rather than on those firms that remain slow despite their age.
With inputs from agencies
Updated Date: Jul 04, 2019 15:05:09 IST