Economic Survey 2020 Analysis

Chapter 1: Wealth Creation: The Invisible Hand Supported by the Hand of Trust   Importance of Wealth creation: It lead to efficient and more utilisation of raw material. It lead to increase in the aggregate demand in the economy. Increase in the Direct tax flows Increase in the salaries of employees working in an ecosystem … Read more

Entrepreneurship and Wealth Creation at the Grassroots   C1:    Entrepreneurship intensity is the new firms registered per year per 1000 workers. It was    just 0.10 which is very low for the manufacturing sector. But in the case of service sector there is comparative advantage. F1: A 10% increase in the registration of new firms … Read more

Undermining Markets: When Government Intervention Hurts More Than It Helps   Fact:  Index of economic freedom is brought out by the heritage foundation. India wascategorized as ‘mostly unfree’ with a scoreof 55.2 in 2019 ranking the Indian economy129th among 186 countries, i.e., in thebottom 30 per cent of countries. Fact: the Global Economic Freedom Index, … Read more

  F1:          The diversity of sectors in the sensex steadily increased over time following market reforms. It shoes less concentration of wealth in few firms and diversification of firms post liberalisation.   F2:    Benefit of liberalisation can be gauged from the democratisation of the firms. Now the ratio of size of Biggest/ smallest firm is … Read more