Economic Survey 2019-20 – Highlights & Complete Coverage
( PART 3 – Economic Sector-wise Performance )
The Economic Survey of India is the flagship annual document of the Ministry of Finance, Govt of India. It is prepared under the guidance of the Chief Economic Adviser of India. This document is presented to both Houses of Parliament during the Budget Session. The first Economic Survey of India was presented in 1950-51 as part of the Union Budget. After 1964 it was separated from the Budget and presented each year during the Budget Session before the presentation of the budget. The document is non-binding.
The Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman presented the Economic Survey 2019-20 in the Parliament on January 31, 2020. Krishnamurthy V. Subramanian is the Chief Economic Adviser of Ministry of Finance, Government of India.
We will present Highlights of the Economic Survey in PART 1, 2 and 3:
- PART 1 – Current Issues of Indian Economy
- PART 2 – GDP and Economic Performance
- PART 3 – Economic Sector-wise Performance
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Key Highlights of the Economic Survey 2019-20
( PART 3 – Indian Economic Sectors’ Performance )
Agriculture and Food Management
- Largest Proportion of Indian population depends directly or indirectly on agriculture for employment opportunities as compared to any other sector.
- The share of agriculture and allied sectors in the total Gross Value Added (GVA) of the country has been continuously declining on account of relatively higher growth performance of non-agricultural sectors, a natural outcome of development process.
- GVA at Basic Prices for 2019-20 from ‘Agriculture, Forestry and Fishing’ sector is estimated to grow by 2.8 %.
· Agricultural productivity is also constrained by lower level of mechanization in agriculture which is about 40 % in India, much lower than China (59.5 %) and Brazil (75 %).
· Skewed pattern of regional distribution of agricultural credit in India:
o Low credit in Hilly, Eastern and North Eastern states (less than 1 % of total agricultural credit disbursement).
· Livestock income has become an important secondary source of income for millions of rural families:
o An important role in achieving the goal of doubling farmers’ income.
o Livestock sector has been growing at a CAGR of 7.9 % during last five years.
· During the last 6 years ending 2017-18, Food Processing Industries sector has been growing:
o Average Annual Growth Rate (AAGR) of around 5.06 %
o Constitutes as much as 8.83 % and 10.66 % of GVA in Manufacturing and Agriculture sector respectively in 2017-18 at 2011-12 prices.
· While interests of the vulnerable sections of the population need to be safeguarded, Survey emphasizes on sustainability of food security operations by:
o Addressing the burgeoning food subsidy bill.
o Revisiting the rates and coverage under NFSA.
Industry and Infrastructure
- The industrial sector as per Index of Industrial Production (IIP) registered a growth of 0.6 per cent in 2019-20 (April-November) as compared to 5.0 % during 2018-19 (April-November).
- Fertilizer sector achieved a growth of 4.0 % during 2019-20 (April-November) as compared to (-) 1.3 per cent during 2018-19 (April-November).
- Steel sector achieved a growth of 5.2 % during 2019-20 (April-November) as compared to 3.6 % during 2018-19 (April-November).
- Total telephone connections in India touched 119.43 crore as on September 30, 2019.
- The installed capacity of power generation has increased to 3, 64,960 MW as on October 31, 2019 from 3, 56,100 MW as on March 31, 2019.
- Report of the Task Force on National Infrastructure Pipeline released on 31.12.2019 has projected total infrastructure investment of Rs. 102 lakh crore during the period FY 2020 to 2025 in India.
Services Sector
- Increasing significance of services sector in the Indian economy:
- About 55 % of the total size of the economy and GVA growth.
- Two-thirds of total FDI inflows into India.
- About 38 per cent of total exports.
- More than 50 % of GVA in 15 out of the 33 states and UTs.
- Gross Value Added growth of the services sector moderated in 2019-20 as suggested by various high-frequency indicators and sectoral data such as air passenger traffic, port and shipping freight traffic, bank credit etc.
- On the bright side, FDI into services sector has witnessed a recovery in early 2019-20.
Social Infrastructure, Employment and Human Development
- The expenditure on social services (health, education and others) by the Centre and States as a proportion of GDP increased from 6.2 % in 2014-15 to 7.7 % in 2019-20 (BE).
- India’s ranking in Human Development Index improved to 129 in 2018 from 130 in 2017:
o With 1.34 % average annual HDI growth, India is among the fastest improving countries - Gross Enrolment Ratio at secondary, higher secondary and higher education level needs to be improved.
- The share of regular wage/salaried employees has increased by 5 percentage points from 18 % in 2011-12 to 23 % in 2017-18.
- 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.
- Total formal employment in the economy increased from 8 % in 2011-12 to 9.98 % in 2017-18.
- Gender disparity in India’s labour market widened due to decline in female labour force participation especially in rural areas:
o Around 60 % of productive age (15-59) group engaged in full time domestic duties. - Access to health services inter-alia through Ayushman Bharat and Mission Indradhanush across the country has improved.
- Mission Indradhanush has vaccinated 3.39 crore children and 87.18 lakh pregnant women of 680 districts across the country.
- About 76.7 % of the households in the rural and about 96 % in the urban areas had houses of pucca structure.
- A 10 Year Rural Sanitation Strategy (2019-2029) launched to focus on sustaining the sanitation behavior change and increasing access to solid and liquid waste management.
Sustainable Development and Climate Change
- India moving forward on the path of SDG implementation through well-designed initiatives
- SDG India Index:
o Himachal Pradesh, Kerala, Tamil Nadu, Chandigarh are front runners.
o Assam, Bihar and Uttar Pradesh come under the category of Aspirants. - India hosted COP-14 to UNCCD which adopted the Delhi Declaration: Investing in Land and Unlocking Opportunities.
- COP-25 of UNFCCC at Mandrid:
o India reiterated its commitment to implement Paris Agreement.
o COP-25 decisions include efforts for climate change mitigation, adaptation and means of implementation from developed country parties to developing country parties. - Forest and tree cover:
o Increasing and has reached 80.73 million hectare.
o 24.56 % of the geographical area of the country. - Burning of agricultural residues, leading to rise in pollutant levels and deterioration of air quality, is still a major concern though the total number of burning events recorded reduced due to various efforts taken.
- International Solar Alliance (ISA)
o ‘Enabler’ by institutionalizing 30 Fellowships from the Member countries.
o ‘Facilitator’ by getting the lines of credit worth US$ 2 Billion from EXIM Bank of India and 1.5 Billion from AfD, France.
o ‘Incubator’ by nurturing initiatives like the Solar Risk Mitigation Initiative.
o ‘Accelerator’ by developing tools to aggregate demand for 1000 MW solar and 2.7 lakh solar water pumps.
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