Editor's Pick | Economic Survey projects 7% growth for economy this year

The Economic Survey for 2023-24 was tabled by Finance Minister Nirmala Sitharaman in Parliament yesterday, on the eve of the Union Budget presentation. It noted that the Indian economy has largely caught up with pre-COVID growth trends and is likely to grow by 6.5% to 7% this year, while also highlighting the need to tackle inequality and unemployment as a policy priority. Chief Economic Adviser (CEA) V. Anantha Nageswaran, the lead author of the Survey, suggested that Union and State governments cut down on their regulatory powers to ease the burden on business. Mr. Nageswaran also indicated that the corporate sector, which was “swimming in excess profits”, should take the responsibility of generating productive jobs in its own “enlightened self-interest.” He further outlined that while corporates benefit from the higher demand generated by employment and income growth, and the financial sector benefits from channelling household savings for investment purposes, “short-termism” could potentially weaken these linkages. Noting that IT sector hiring has slowed over the past two years, he urged Indian industry to think harder about how AI can augment labour, rather than displace it, writing that: “Deploying capital-intensive and energy-intensive AI is probably one of the last things a growing, lower-middle-income economy needs.” The authors of the Survey recommended steps to tackle inequality, improve the health of the youth in the short run, and bridge the education-employment gap. They also mooted revamped skilling initiatives to help industry find people with the “right attitude and skills.” Highlghting ways to assist youth gain employment, the survey noted that “for India’s working-age population to be gainfully employed, they need skills and good health. Social media, screen time, sedentary habits, and unhealthy food are a lethal mix that can undermine public health and productivity and diminish India’s economic potential. The private sector’s contribution to this toxic mix of habits is substantial, and that is myopic.” Mr. Nageswaran also highlighted that while India’s per capita income GDP has risen seven times since 1990 to $2,500, the journey to raise it to $10,000 and make India a developed nation by 2047 needs a different approach. “What has got us here will not get us to where we want to be,” he wrote. Structural reforms such as the GST and the Insolvency and Bankruptcy Code have matured and are delivering envisaged results, the CEA argued, and added that such supply side reforms must now make way for “next-gen reforms that are bottom-up in nature to yield strong, sustainable, balanced and inclusive growth.” “Open minds are a good place to start… Our knowledge and attitudes have to continually evolve…” reads the preface to the Survey’s six-pronged strategy that seeks to boost private sector investments “organically and steadily, delivering endogenous growth in jobs and a fair share of income for workers.” Other items on the survey bucket list include financing the green transition, removing hindrances for micro, small and medium enterprises (MSMEs), tapping the potential of agriculture to be a growth engine by removing policy impediments and “intelligent farmer-friendly policies.” The Hindu’s Editorials ​Democratic departure: On Joe Biden bowing out of the presidential race ​Quest for quota: On politics and the unrest in Bangladesh The Hindu’s Daily Quiz The Kanwar Yatra will begin on July 22. When will it end? August 16 August 2 July 31 August 1 To know the answer and to play the full quiz, click here. [logo] Editor's Pick 23 July 2024 [The Hindu logo] [EP Logo] Editor's Pick 23 July 2024 In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [View in browser]( [More newsletters]( Economic Survey projects 7% growth for economy this year The [Economic Survey for 2023-24]( was tabled by Finance Minister Nirmala Sitharaman in Parliament yesterday, on the eve of the [Union Budget presentation]( It noted that the Indian economy has largely caught up with pre-COVID growth trends and is likely to grow by 6.5% to 7% this year, while also highlighting the need to tackle inequality and unemployment as a policy priority. Chief Economic Adviser (CEA) V. Anantha Nageswaran, the lead author of the Survey, suggested that Union and State governments cut down on their regulatory powers to ease the burden on business. Mr. Nageswaran also indicated that the corporate sector, which was “swimming in excess profits”, should take the responsibility of generating productive jobs in its own “enlightened self-interest.” He further outlined that while corporates benefit from the higher demand generated by employment and income growth, and the financial sector benefits from channelling household savings for investment purposes, “short-termism” could potentially weaken these linkages. Noting that IT sector hiring has slowed over the past two years, he urged Indian industry to think harder about how AI can augment labour, rather than displace it, writing that: “Deploying capital-intensive and energy-intensive AI is probably one of the last things a growing, lower-middle-income economy needs.” The authors of the Survey recommended steps to tackle inequality, improve the health of the youth in the short run, and bridge the education-employment gap. They also mooted revamped skilling initiatives to help industry find people with the “right attitude and skills.” Highlghting ways to assist youth gain employment, the survey noted that “for India’s working-age population to be gainfully employed, they need skills and good health. Social media, screen time, sedentary habits, and unhealthy food are a lethal mix that can undermine public health and productivity and diminish India’s economic potential. The private sector’s contribution to this toxic mix of habits is substantial, and that is myopic.” Mr. Nageswaran also highlighted that while India’s per capita income GDP has risen seven times since 1990 to $2,500, the journey to raise it to $10,000 and make India a developed nation by 2047 needs a different approach. “What has got us here will not get us to where we want to be,” he wrote. Structural reforms such as the GST and the Insolvency and Bankruptcy Code have matured and are delivering envisaged results, the CEA argued, and added that such supply side reforms must now make way for “next-gen reforms that are bottom-up in nature to yield strong, sustainable, balanced and inclusive growth.”  “Open minds are a good place to start… Our knowledge and attitudes have to continually evolve…” reads the preface to the Survey’s six-pronged strategy that seeks to boost private sector investments “organically and steadily, delivering endogenous growth in jobs and a fair share of income for workers.” Other items on the survey bucket list include financing the green transition, removing hindrances for micro, small and medium enterprises (MSMEs), tapping the potential of agriculture to be a growth engine by removing policy impediments and “intelligent farmer-friendly policies.” The Hindu’s Editorials [Arrow][​Democratic departure: On Joe Biden bowing out of the presidential race]( [Arrow][​Quest for quota: On politics and the unrest in Bangladesh]( The Hindu’s Daily Quiz The Kanwar Yatra will begin on July 22. When will it end? - August 16 - August 2 - July 31 - August 1 To know the answer and to play the full quiz, [click here.]( [Sign up for free]( Today’s Best Reads [[Union Budget 2024-25: Nirmala Sitharaman to present Budget for a record seventh time in a row] Union Budget 2024-25: Nirmala Sitharaman to present Budget for a record seventh time in a row]( [[Frigate INS Brahmaputra ‘lying on its side’ after fire; sailor missing] Frigate INS Brahmaputra ‘lying on its side’ after fire; sailor missing]( [[MGNREGS demand not a real indicator of rural distress: Economic Survey] MGNREGS demand not a real indicator of rural distress: Economic Survey]( [[In charts: Key takeaways from Economic Survey 2023-24] In charts: Key takeaways from Economic Survey 2023-24]( Copyright© 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please [try here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails [go here](