Key Highlights of Economic Survey 2020: Check Economic Survey of India 2019-20

Highlights; Where the Indian Economy is headed: Finance Minister Nirmala

Sitharaman tabled the Economic Survey of India 2020 in the Parliament today.

Key Highlights of Economic Survey of India 2019-20: Finance Minister Nirmala

Sitharaman tabled the Economic Survey of India 2020 in the Parliament today. Ahead of the
Economic Survey, Indian rupee appreciated by 17 paise to 71.41 against the US dollar in
early trade on Friday. Parliament’s Budget Session is also starting today. Ahead of the
Budget Session, PM Modi said, “Our government’s identity has been of empowering Dalits,
women, those who face exploitation; want to continue efforts. I want vast, qualitative
discussion on economy in both houses. We should make sure that in this session, we lay a
strong foundation for this decade,” PM Modi said. “Let this session focus upon maximum
possible economic issues and the way by which India can take advantage of the global
economic scenario. Strengthening its economic activities, India should get the maximum
benefits of the global conditions. Our government has been identified with the empowerment
of the oppressed, the exploited, the deprived classes and women. We will be focussing upon
the same in this decade too,” PM Modi said.

Following are the highlights of Economic Survey of India 2019-20:

Key Highlights of Economic Survey 2019-20
Thalis more affordable for Indians now!
The Economic Survey said that affordability of Thalis vis-à-vis a day’s pay of a
worker has improved over time, indicating improved welfare of the common person.
The Economic Survey 2019-20 presented in Parliament today by the Union Minister
for Finance and Corporate Affairs Smt Nirmala Sitharaman states that affordability of
vegetarian Thalis improved 29 per cent from 2006-07 to 2019-20 while that for non-
vegetarian Thalis by 18 per cent.
Economic survey 2020 PDF download: How to download Economic Survey
2019 Summary PDF
More new firms created
The Economic Survey highlighted that new firm creation in India has increased
dramatically since 2014. There has been 12.2 % cumulative annual growth rate of
new firms in the formal sector during 2014-18, compared to 3.8 % during 2006-2014.
About 1.24 lakh new firms created in 2018, an increase of about 80 % from about
70,000 in 2014.
47.33 Lakh Houses Completed Per Year in 2018-19 Under PMAY- Gramin
The Survey noted, the two Schemes, Pradhan Mantri Awaas Yojana- Gramin
(PMAY-G) and Pradhan Mantri Awaas Yojana- Urban (PMAY-U), seek to achieve
the target of housing for all by 2022. Under PMAY-G, the number of houses
completed in a year increased by more than four times, from 11.95 lakh in 2014-15
to 47.33 lakh in 2018-19, states the Survey.
Infrastructure Investment of Rs.102 Lakh Crore in FY 2020-2025
The Survey said that to achieve GDP of USD 5 trillion by 2024 – 2025, India needs
to spend about USD 1.4 trillion (Rs.100 lakh crore) over these years on infrastructure
so that lack of infrastructure does not become a constraint to the growth of Indian
economy. NIP is expected to enable well prepared infrastructure projects that will
create jobs, improve ease of living and provide equitable access for infrastructure for
all thereby making growth more inclusive.
7.9 Per Cent Growth Registered in Livestock Sector During Last Five Years
The Survey said that Livestock income has become an important secondary source
of income for millions of rural families and has assumed an important role in
achieving the goal of doubling farmers’ income, says Economic Survey. Livestock
sector has been growing at a Compound Annual Growth Rate (CAGR) of 7.9 per
cent during last five years.
Greening India! 
The Survey said that despite ongoing developmental efforts, forest and tree cover
are increasing considerably. The forest and tree cover have reached 80.73 million
hectares which is 24.56 per cent of the geographical area of the country. The Survey
further highlighted that the States/UTs showing gain in forest cover are Karnataka
(1,025 sq. km), Andhra Pradesh (990 sq. km) and Jammu & Kashmir (371 sq. km)
whereas those showing loss in forest cover include Manipur, Meghalaya, Arunachal
Pradesh and Mizoram. In the Forest Report 2019, the total carbon stock in forest is
estimated as 7,124.6 million tons, showing an increase of 42.6 million tons as
compared to the last assessment in 2017.
Ayushman Bharat and Health
Ayushman Bharat, the world’s biggest health care Scheme to improve access to
health and delivery of health services at massive scale, has set up 28,005 Health &
Wellness Centres as on 14th January 2020. “To promote preventive healthcare, one
and half lakh Ayushman Bharat- Health and Wellness Centres are proposed to be
set up by 2022,” the Survey said.
As per the latest National Health Accounts 2016-17, the out of pocket expenditure
(OoPE) on health as a percentage of total health expenditure declined from 64.2 per
cent in 2013-14 to 58.7 per cent in 2016-17, observed the Economic Survey.
 2.6 crore jobs created in Rural and Urban Areas Between 2011-12 and 2017-18
The Survey said that along with efforts for generating additional employment, special
focus has been on improving quality of jobs and formalisation of the economy, notes
the Economic Survey. The share of regular wage/salaried employees has increased
by 5 percentage points from 18 per cent in 2011-12 to 23 per cent in 2017-18. In
absolute terms, there was a significant jump of around 2.62 crore new jobs with 1.21
crore in rural areas and 1.39 crore in urban areas in this category.
India has become Second Largest Emerging Green Bond Market after China
Survey observed that India has the Second largest Emerging Green Bond Market
after China. The SBI entered the market with an US$650 million Certified Climate
Bond. India also joined International Platform on Sustainable Finance (IPSF) in 2019
to scale up the environmentally sustainable investments.
All Urban Areas of 35 States/UTs Declared Open Defecation Free;
Swachh Bharat Mission (Urban) was launched in 2014 with twin objectives of
ensuring 100 percent scientific solid waste management and making urban India
ODF to achieve total environmental improvement. All Urban areas of 35 States/UTs
have become ODF and percentage of waste processing rose from around 18
percent to 60 percent.
Services Sector Sees 33 Per Cent Jump in Gross FDI
Growing in its significance, the Services Sector accounted for about 55percent of the
economy and Gross Value Added (GVA) growth, two-thirds of total FDI inflows into
India and about 38percent of the total exports. This was emphasized by the
Economic Survey 2019-20, tabled in the Parliament today by the Union Minister for
Finance and Corporate Affairs, Smt. Nirmala Sitharaman. The sector’s share now
exceeds 50 per cent of the Gross State Value Added in 15 out of the 33 states and
UTs, the Survey further noted.
Improvement in Space Sector
India’s space programme has grown exponentially since its modest beginnings five
decades ago, moving from simple mapping services to many more uses currently.
Even though India’s spending is less compared to others, ISRO has launched
around 5-7 satellites per year in recent years with almost no failures.
Chief Economic Advisor Krishnamurthy Subramanian said, “Our team has done a lot
of hard work. The team has prepared the second economic survey in six months.”
ALSO READ | Economic Survey 2020 in Hindi 
Rationalisation of Government Intervention to Boost Economic Freedom &
Wealth Creation required
The Economic Survey said that while there is a case for Government intervention
when markets do not function properly, excessive intervention especially when the
market can do the job of enhancing citizens welfare perfectly well, stifles economic
freedom and creates ‘deadweight loss’ which is the loss created by the wasted
chance of creating a consumer and producer surplus and reduces wealth creation by
not allowing efficient allocation of entrepreneurial resources and energy to productive
activities thereby promoting economic dynamism.
Other Highlights of Economic Survey 2019-20
 GDP growth pegged at 6-6.5 per cent in fiscal year starting April 1, up from 5
per cent in current fiscal
 Fiscal deficit target for current fiscal may need to be relaxed to revive growth
 Uptick in growth projected in second half of current fiscal based on 10 factors
including higher FDI flows, build up of demand pressure, positive GST revenue
growth
 Survey asks government to deliver expeditiously on reforms to revive growth
 Ethical wealth creation key to India becoming USD 5 trillion economy by 2025
 Share of formal employment increased from 17.9 per cent in 2011 -12 to 22.8
per cent in 2017-18 reflecting formalisation in the economy
 Theme of Survey is wealth creation, promotion of pro-business policies,
strengthening of trust in the economy
 To achieve GDP of USD 5 trillion by 2024-25, India needs to spend about
USD 1.4 trillion over these years on infrastructure
 2.62 crore new jobs created in rural, urban areas between 2011-12 and 2017-
18 among regular wage/salaried employees
 8 per cent increase in regular employment of women in 2017-18 over 2011-12
 Excessive government intervention in markets, especially when the market
can do the job of enhancing citizens welfare perfectly well, stifles economic
freedom
 Debt waivers disrupt the credit culture, reduces formal credit to same farmers
 Suggests government to systematically examine areas where it needlessly
intervenes and undermines markets
 Calls for improving governance in public sector banks, more disclosures to
build trust
 Calls for measures to make it easier to start new business, register property,
pay taxes, enforce contracts
 Easing of crude prices lowers current account deficit; imports contract more
sharply than exports in first half of current fiscal
 Declining inflation from 3.2 per cent in April 2019 to 2.6 per cent in December
2019, reflecting weakening demand pressure in the economy
 GST collections grew by 4.1 per cent for the centre during April-November
2019.
Do you know What is Finance Bill, Short Term Capital Gains Tax, Fiscal Policy
in India, Section 80C of Income Tax Act 1961, Expenditure Budget? FE Knowledge
Desk explains each of these and more in detail at Financial Express Explained. Also
get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top
Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax
Calculator tool.