Table 5 of the Economic Survey lays out in detail all the welfare measures taken through the Covid crisis, along with the results thereof. #EconomicSurvey2022
This has been India's approach, all through the pandemic. Strong safety nets targeted (thanks to @UIDAI and @India_Stack) at those who need it most, and an iterative approach that adapts to evolving situations.
Macro is strong and stable - even if global conditions worsen from here, India is in a good position to weather storms. #EconomicSurvey2022
Diversification of tax sources and widening the tax base - especially for individual income tax - is critical. #EconomicSurvey2022
What difference is Government e-Marketplace (GeM) gem.gov.in - launched in August 2016 - making for public procurement?
Exports going up and sustainably so, as @neelkanthmishra has also written.
Rising merchandise trade balance means India is also expanding its options in the international relations sphere too because of the increased trade.
The #IndiaTech phenomenon. Foreign investment in startups (overlapping with the computer software + hardware sector) has become a significant source of FDI contribution. #StartupIndia
One of the biggest, most important successes of the Modi Govt: the Insolvency and Bankruptcy Code, which not only restored the credibility of capitalism hindustantimes.com/opinion/how-mo… ...but fixed the banking crisis inherited from UPA 2. #EconomicSurvey2022
Financialization at warp speed.
Retail investors are becoming a bigger segment of the stock market. At it is just the beginning. #EconomicSurvey2022
#EconomicSurvey2022 reaffirms the commitment to privatize or close almost all the 256 operational public sector enterprises (PSEs) - only a "bare minimum presence" to be maintained in the notified strategic sectors where PSEs will remain.
National Infrastructure Pipeline envisages an investment of Rs 111 lakh crore / $1.5 trillion to build infrastructure across a range of industries. #EconomicSurvey2022
Highway and road construction is proceeding at breakneck speed. #EconomicSurvey2022
>@RailMinIndia to electrify its entire network by December 2023. Again, the pace is (pun not intended) electrifying. #EconomicSurvey2022
Railways capital expenditure in 2021-22 will be 5x the capex in 2014. Yes, the ramp up is *5x in 7 years*. Enough capacity to be built up by 2030 so that the rail infra in the country is ahead of demand.
The internet boom, mainly led by private sector telecom companies.
The telecom story is, in my view, unquestionably the single-biggest transformation catalyst of the post-1991 era. #EconomicSurvey2022
Among the least discussed, but most high-impact reforms - removal of telecom regulations for BPO sector. One of those things that doesn't grab headlines but brings immediate, tangible changes for an industry. #EconomicSurvey2022
The Survey provides an update on the implementation status of the new Labour Codes by the States. This is a crucial reform for @makeinindia and for boosting manufacturing. #EconomicSurvey2022
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“The size of the middle class is expected to rise from 432M people in 2020-21 to 715M (47%) in 2030-31 to 1.02B, 61% of India's projected population of 1.66B in 2047”
Pavitr Prabhakar, “a web-swinging, chai-sipping fellow whose name is a play on Peter Parker”, attracts Indian fans to Spider-Man: Across the Spider-Verse
Expect more such storytelling by Hollywood studios that want to succeed in India’s vast market 😀 🎥wsj.com/articles/spide…
“India is the talent factory of the world, it has massive potential across all manufacturing industries, and it has leapfrogged on digitization” 2/n
Noel Quinn, group CEO of HSBC – “India is extremely well positioned to ride out an economic slowdown and has seen strong FDI, trade flows…Manufacturing plants are starting to be built in India, and credit goes to the Government of India…” cnbctv18.com/business/compa… 3/n
Given unprecedented inflation in advanced economies, one has to question their policy choices through the pandemic. While the shock to energy and food prices from the European war is a proximate cause, excessive fiscal stimulus during 2020 had fragilized these countries.
For example, UK could soon see inflation north of 20%. These levels are unheard of, last seen many decades ago. This will deal a severe blow to real disposable incomes and household savings. bloomberg.com/news/articles/…
What must be noted and remembered is most of the "policy experts" and economists were building pressure for India to follow the same playbook in 2020: go for a huge fiscal stimulus, even as the country went into a total lockdown. Slam brakes and accelerator simultaneously!
Zero tax on long-term gains and dividends was a disastrous tax policy. The objective of taxation should be to have the tax base be as wide as possible. Exempting entire sections from paying taxes only causes those who are paying taxes to cough up at even higher rates.
Not just that, zero taxes on listed equities - vast majority of which is secondary market purchase, not in primary issue - is a clear disincentive for financial participation in private equity, which comparatively was very heavily taxed. Private equity actually funds businesses.
This clamour around Budget time from every segment for reduction in taxes is frankly disgusting. Direct taxes in India still need a lot of rationalization and reforms. Argue for system-wide changes that make everyone better off, instead of trying to grab your own benefit.
In November 2020, a journalist wrote a piece titled "Why I Am Losing Hope In India". The screed was shared widely by the usual suspects, offering an extremely negative prognosis on how the India story might be on its last legs.
Let us assess how things have turned out over the last ~15 months for India and the Indian economy.
Entrepreneurship: 2021 was a record year for IPOs and for new unicorns minted.
India continued to see net investment from institutional investors, even as other Asian countries saw significant net outflows - reflecting investor confidence in Indian business.