A SHORT REPLY TO ECONOMIC SURVEY OF INDIA – 2014-15

By March 1, 2015 No Comments
economic survey 2014-15

For the first time in history, the Indian Economic Survey looked more like of visionary statement or wish list rather than the traditional presentation of the economy standards of the year gone by. The first ever economic survey of Modi Government looked more colorful than ever preferably to reflect upon the new positive outlooks of the government in promoting economic growth through ease of business.

Perhaps that’s why the Economic Survey of India was worried more above the export buoyancy and the new avenues for trade than any other concerns of labour market or common public.  Apart form this stereotype  claim against the every budget presentation, what is more worrisome for the common people in the new budget is that it warns India of its exclusion from the mega-regional trade agreements like TPP and TTIP. The survey makes urges India to take part in these arrangements. The Survey stated, “Trade outcomes have been stagnating. The trading environment is becoming more challenging as the buoyancy of Indian exports has declined with respect to world growth and as the negotiation of mega-regional trading arrangements threatens to exclude India, any possible exclusion from the mega-regionals would be additionally worrisome.”

However, such a concern is totally out of place and manipulative. It is in fact to think about any exclusion of India in this regard, is preposterous as such an Act would shut down the world’s largest market for every trader round globe. More importantly, India must tap in the wide possibilities  and potentials of its start ups, small and medium scale firms to realize its dream  of evolving itself into a manufacturing hub. Involvement to mega pacts untimely would be retrograde step resulting in the closure of many Indian new newbie firms. Participation in global value chain doesn’t necessarily require India to formally enter to any FTAs; Indian advantage of cheap labour, water, power and infra resources is capable of doing wonders to attract business to India.  Therefore, India must concentrate nothing but national interests and improving its trade capabilities.

Fortunately, the survey agrees to this viewpoint also that India needs to upgrade its trade capabilities. Thanks to the populist tinges of Modi cabinet.

(Inputs form Business Standard, debatewise.org, World Economic Forum)

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