Daily Analysis of 'The Hindu' - 1st February, 2020 | Additional Study Material for UPSC PDF Download

 Page 1


Unfounded optimism 
?Economic Survey: report card-cum-blueprint for the 
future 
?Chief Economic Adviser (CEA) Krishnamurthy 
S u b r a m a n i a n ’ s Economic Survey 2019-20 
?Mixed bag of interesting diagnosis combined with 
some optimistic prognostication. 
?CEA in July projected real GDP growth rebounding to 
7% this fiscal. 
?CEA acknowledges that 2019 was a difficult year for 
the global economy, including for trade and demand, 
and by extension a challenging period for the Indian 
economy as well.  
Page 2


Unfounded optimism 
?Economic Survey: report card-cum-blueprint for the 
future 
?Chief Economic Adviser (CEA) Krishnamurthy 
S u b r a m a n i a n ’ s Economic Survey 2019-20 
?Mixed bag of interesting diagnosis combined with 
some optimistic prognostication. 
?CEA in July projected real GDP growth rebounding to 
7% this fiscal. 
?CEA acknowledges that 2019 was a difficult year for 
the global economy, including for trade and demand, 
and by extension a challenging period for the Indian 
economy as well.  
?National Statistical Office now estimates at 5% for the 12 
months ending in March. 
?IMF: stress in the non-bank financial industry and decline in 
credit growth. 
?Interestingly, a chapter devoted to “Financial fragility in the 
NBFC sector ” recommends a dynamic health index that 
policymakers can use as an early warning system to avert 
incipient liquidity crises in this key credit providing sector.. 
?Downside risks: continuing global trade uncertainties, 
escalation in West Asian geopolitical tensions, slow pace of 
insolvency resolution and the possibility of further fiscal 
pressure crowding out private investment. 
Page 3


Unfounded optimism 
?Economic Survey: report card-cum-blueprint for the 
future 
?Chief Economic Adviser (CEA) Krishnamurthy 
S u b r a m a n i a n ’ s Economic Survey 2019-20 
?Mixed bag of interesting diagnosis combined with 
some optimistic prognostication. 
?CEA in July projected real GDP growth rebounding to 
7% this fiscal. 
?CEA acknowledges that 2019 was a difficult year for 
the global economy, including for trade and demand, 
and by extension a challenging period for the Indian 
economy as well.  
?National Statistical Office now estimates at 5% for the 12 
months ending in March. 
?IMF: stress in the non-bank financial industry and decline in 
credit growth. 
?Interestingly, a chapter devoted to “Financial fragility in the 
NBFC sector ” recommends a dynamic health index that 
policymakers can use as an early warning system to avert 
incipient liquidity crises in this key credit providing sector.. 
?Downside risks: continuing global trade uncertainties, 
escalation in West Asian geopolitical tensions, slow pace of 
insolvency resolution and the possibility of further fiscal 
pressure crowding out private investment. 
?It recommends scrapping the Essential 
Commodities Act — enacted in 1955 when famines 
and shortages were the concern. 
?Drug (Prices Control) Order of 2013 has failed to 
achieve its aim of making drugs affordable and 
needs to go. 
?CEA wants a complete review of the policy on 
foodgrains, which he argues has made the 
government the largest “hoarder ” thereby 
distorting these markets. 
?All are suggestions that traders and market 
players, a key electoral constituency, will cheer, 
but may be fraught with risks. 
Page 4


Unfounded optimism 
?Economic Survey: report card-cum-blueprint for the 
future 
?Chief Economic Adviser (CEA) Krishnamurthy 
S u b r a m a n i a n ’ s Economic Survey 2019-20 
?Mixed bag of interesting diagnosis combined with 
some optimistic prognostication. 
?CEA in July projected real GDP growth rebounding to 
7% this fiscal. 
?CEA acknowledges that 2019 was a difficult year for 
the global economy, including for trade and demand, 
and by extension a challenging period for the Indian 
economy as well.  
?National Statistical Office now estimates at 5% for the 12 
months ending in March. 
?IMF: stress in the non-bank financial industry and decline in 
credit growth. 
?Interestingly, a chapter devoted to “Financial fragility in the 
NBFC sector ” recommends a dynamic health index that 
policymakers can use as an early warning system to avert 
incipient liquidity crises in this key credit providing sector.. 
?Downside risks: continuing global trade uncertainties, 
escalation in West Asian geopolitical tensions, slow pace of 
insolvency resolution and the possibility of further fiscal 
pressure crowding out private investment. 
?It recommends scrapping the Essential 
Commodities Act — enacted in 1955 when famines 
and shortages were the concern. 
?Drug (Prices Control) Order of 2013 has failed to 
achieve its aim of making drugs affordable and 
needs to go. 
?CEA wants a complete review of the policy on 
foodgrains, which he argues has made the 
government the largest “hoarder ” thereby 
distorting these markets. 
?All are suggestions that traders and market 
players, a key electoral constituency, will cheer, 
but may be fraught with risks. 
Page 5


Unfounded optimism 
?Economic Survey: report card-cum-blueprint for the 
future 
?Chief Economic Adviser (CEA) Krishnamurthy 
S u b r a m a n i a n ’ s Economic Survey 2019-20 
?Mixed bag of interesting diagnosis combined with 
some optimistic prognostication. 
?CEA in July projected real GDP growth rebounding to 
7% this fiscal. 
?CEA acknowledges that 2019 was a difficult year for 
the global economy, including for trade and demand, 
and by extension a challenging period for the Indian 
economy as well.  
?National Statistical Office now estimates at 5% for the 12 
months ending in March. 
?IMF: stress in the non-bank financial industry and decline in 
credit growth. 
?Interestingly, a chapter devoted to “Financial fragility in the 
NBFC sector ” recommends a dynamic health index that 
policymakers can use as an early warning system to avert 
incipient liquidity crises in this key credit providing sector.. 
?Downside risks: continuing global trade uncertainties, 
escalation in West Asian geopolitical tensions, slow pace of 
insolvency resolution and the possibility of further fiscal 
pressure crowding out private investment. 
?It recommends scrapping the Essential 
Commodities Act — enacted in 1955 when famines 
and shortages were the concern. 
?Drug (Prices Control) Order of 2013 has failed to 
achieve its aim of making drugs affordable and 
needs to go. 
?CEA wants a complete review of the policy on 
foodgrains, which he argues has made the 
government the largest “hoarder ” thereby 
distorting these markets. 
?All are suggestions that traders and market 
players, a key electoral constituency, will cheer, 
but may be fraught with risks. 
India abroad 
?European Union P a r lia m e n t ’ s discussion recently on 
I n d i a ’ s Citizenship (Amendment) Act or CAA, is more 
proof of concern, particularly in the West, over the 
possible repercussions of the law and the protests across 
India. 
?Parliamentarians in the U.K. and U.S. Congressmen, 
including Democratic presidential contenders, have asked 
India to “reconsider ” the law and to “ e n g a g e ” with the 
protesters. 
?The EU parliamentarians went a step further: putting out 
six different and extremely critical resolutions, including 
one that spoke of the possible risk by the CAA and the 
proposed National Register of Citizens, of creating “ t h e 
largest statelessness crisis in the world ”.