Explained: What is Economic Survey’s strategy for boosting wealth creation?

by

By: Explained Desk | New Delhi | Updated: January 31, 2020 7:37:10 pm

A worker in New Delhi. (Express Photo: Praveen Khanna)

The big idea from the Economic Survey 2019-20 is the need to push towards increasing the number of wealth creators in the Indian economy. The Survey states that to achieve the goal of becoming a $5-trillion economy, the invisible hand of markets will need the support of “the hand of trust”.

What does that mean?

Essentially, this means that regulation and rules in the economy should be such that they make it easy to do business but not turn into crony capitalism.

The Survey states: “The invisible hand needs to be strengthened by promoting pro-business policies to (i) provide equal opportunities for new entrants, enable fair competition and ease doing business, (ii) eliminate policies that unnecessarily undermine markets through government intervention, (iii) enable trade for job creation, and (iv) efficiently scale up the banking sector to be proportionate to the size of the Indian economy.”