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Economic Survey
Why is it in news?
- Chief economic adviser (CEA) Krishnamurthy presented the Economic Survey 2020-2021.
Highlights of Economic Survey:
- Growth: India’s economy is firmly in the middle of a V-shaped recovery and will bounce back to record 11% growth in 2021-22.
- Spending: Survey has batted for a continued expansionary fiscal stance by the government to ensure that growth returns to pre-Covid levels.
- A rebound in economic activity and the government’s reforms can help the Indian economy go past its pre-Covid level in two years.
- Clean-up of bank books: There is need for a fresh asset quality review of Indian banks as soon as the Covid-19 relief measures are lifted.
- Inflation: A greater focus on core inflation is warranted to drive policy-making.
- Health: The survey recommended setting up a sectoral regulator, and a rating agency like body, to assess the quality of healthcare providers in the country.
- Current Account surplus: India expected to witness current account surplus during the current financial year after a gap of 17 years.
- Reforms in tax administration have set in motion a process of transparency and accountability.
- Research and Development (R&D): Businesses must ramp up R&D spending to boost innovation.
- Gig Economy: The lockdown gave a boost to the gig economy, while it had an “inevitable impact on the vulnerable and informal sector.