 Hello friends, my name is Dr. Anand Kumar Sharma, my rank was 62 in CSE 2018. In this we will be doing the chapter 6 of volume 1 of economic survey that is how does policy uncertainty affect investment. So this chapter talks about economic policy uncertainty that how it has reduced in India especially with highest in 2011-12 and now it has reduced. It also talks about how there is a divergence between India and the other countries like US and Europe where the economic policy uncertainty has been increasing whereas in India it has been decreasing especially in the post 2015 era and also it talks about how economic policy uncertainty impacts the macroeconomic environment, the business conditions and investment in the country. So also in further it finds out the solutions, try to give the solution to how the economic policy uncertainty which is under the control of the policy makers can be reduced and hence can improve the business environment and the macroeconomic environment of the country. So it talks about that what is our economic policy uncertainty measures which creates risk situation of doubt, ambiguity, non-clarity in the policy which impacts the environment. So it has created an index for that that is economic policy uncertainty index which is determined on the three parameters. The parameters is where using the newspapers, newspaper where the three terms like the economy, PMO, RBI reserve, inflation, economic advisor, law makers, three types of these criteria are given which determines when these are given in the newspaper it determines that how the economic policy uncertainty is given in the country's legislative environment. So now it highlights that how the economic policy uncertainty in India has varied. It says that it was highest in 2011-12 where when there was a policy paralysis it also increased the 2013 when there was a tapered interim by the US Federal Reserve where the uncertainty increased that time and hence it has increased the economic policy uncertainty in the country. But moving on further after that the economic policy uncertainty has reduced due to the measures especially like the GSTs and the insolvency and bankruptcy code and the measures taken by the government to stabilize the business environment and the economic environment in the country. So this now highlights further moving on it highlights the relation between the economic policy uncertainty index and the macroeconomic variables especially the vulnerability index which was there which highlights three things that is the fiscal deficit, the round account deficit and also the inflation. So it shows that both increases that is whenever the economic policy uncertainty index increases all these parameters also increases and macro vulnerability index also shows the rise which increases the vulnerability of the economic environment of the country impacting all the other sections that is the business that is the growth, the inflation and the investment environment in the country. Then it highlights that India's economic policy has been decoupled, decoupled that is it is not related or linked to the global economic environment the global economic policy uncertainty. It shows that India has shown a divergence from the countries like US, UK, China economic policy uncertainty has been increasing whereas in India economic policy uncertainty index has been decreasing. So further moving on it highlights the impact of the economic policy uncertainty index on the investment activity. It shows since the economic policy uncertainty index activity has an impact on the inflation on the business environment on the exchange rate. So this also has an impact on the investment. So it shows that the investment that is the FDI and the FII both have a negative impact on the investment of the country due to the economic policy uncertainty wherever there is an economic policy uncertainty the FDI and the FII inflows decreases in the country and also changes the exchange rate stability. This also impact the growth of the country which shows that economic policy uncertainty index impacts the investment as well as the growth both. So economic policy uncertainty index impacts directly the inflows and indirectly by impacting the inflation exchange rate and all these factors both leading to the reduced investment and thus low investment climate in the country. So now moving on further that how this economic policy index uncertainty can be improved and can also be made more environment friendly or more business environment friendly moving the investment climate and as well as the growth of the country. So it highlights few steps. First steps is highlight that top level of policy maker must ensure that their policies are predictable. There are less ambiguities not leave to the discretion not left to the interpretations but as a more of the clarity for example FRBM act monetary policy framework as well as the budgetary framework which have provided a more certainty to the business environment framework. Second they talks about what get measures get acted upon which means economic policy uncertainty index must become an important index of the policy makers. So whatever they are trying to do there should be index and then the sub indexes for fiscal policy, tax policy, monetary policy and they should be measured also so that there is a better monitoring possible of the business environment, tax policies, legislative policies and all the policies impacting the growth and the investment climate of the country. Further quality assurance of the process that how the process of the policy making has been arrived which they talk about document what you do but more critically do what you document. So that all the policies of the government which are being in the document they needs to be implemented, there needs to be a process of certification, there is a process of quality assurance through standardization and quality certification. So these are some measures which they have talked about to improve the legislative policy making as well as the business environment and the investment environment of the country. So summarizing what they are talking about is that economic policy uncertainty has reduced significantly India in over the last decade. Continued decline in economic policy uncertainty in India post 2015 is exceptional because it contrast sharply with the increase during this period in economic policy uncertainty in major country especially the US. An increase in the economic policy uncertainty dampens investment growth in India for about five quarters unlike general economic uncertainty which can be controlled. Policy makers can reduce economic policy uncertainty to foster a salutary investment climate in the country. Also forward guidance consistency of actual policy with forward guidance and quality assurance certification of process in government department can help to reduce economic policy uncertainty. So basically this chapter talk about a basic idea of this chapter is that economic policy uncertainty needs to be reduced and it needs to be more predictable unambiguous not left to discretion because this directly impacts the investment climate in the country as well as indirectly impact the macroeconomic variables of the economy which also indirectly impacts the investment and the growth of the country. So this was the summary of the chapter thank you.