The Economic Survey of 2020 acknowledges that 2019 was a difficult year for the global economy, including for trade and demand, and by extension a challenging period for the Indian economy as well.
The Survey concedes that “a sharp decline in fixed investment induced by a sluggish growth of real consumption” has weighed down growth, which the National Statistical Office now estimates at 5% for the 12 months ending in March
Risks in next fiscal
- Listing downside risks to next fiscal’s outlook including continuing global trade uncertainties, escalation in West Asian geopolitical tensions, slow pace of insolvency resolution and the possibility of further fiscal pressure crowding out private investment.
- Theme of economic survey was “wealth creation”, and promoting ethical practices for that engender trust are the agenda of the government.
- Survey states that, recommends scrapping the Essential Commodities Act enacted in 1955 when famines and shortages were the concern. Similarly, it asserts that the Drug (Prices Control) Order of 2013 has failed to achieve its aim.