 Hello everyone, my name is Dilip Pratapsin Shakavath, I have secured all Indiraing 72 in civil services examination 2018 and today I am here to discuss the economic survey with you and in this video I will do a detailed analysis of the economic survey so that becomes helpful for the candidates who will be appearing in the main examination of 2019. So the first chapter is private investment as the key driver of growth, jobs, exports and demand. So this is the first chapter of the economic survey and in the first chapter itself the economic survey this year has mentioned the vision of the Indian economy going forward for the next decade or so. So the first important objective of the economic survey is to show the growth path for India to make it a $5 trillion economy by the year 2024-25 and then it has also mentioned a growth target of 8% per annum which needs to be achieved every year to make India a $5 trillion economy by the year 2025. So this is the first thing which is given in the chapter 1. Moving forward for achieving this target a virtuous cycle is required. The traditional norm of economics is about equilibrium that there are policies, there is a government and there are some institutes which are running in the market which generate profits and it becomes the GDP. And after the global financial crisis this model has been taken down by many economists and the work on behavioral economists has been taken up. So in this sense a virtuous cycle has been emphasized by the economic survey this year in which it will be based upon increasing the savings of the population which will in turn turn into investments and then it will turn into exports and job creation. So this will be a virtuous cycle in which the growth of the nation will increase the GDP will increase subsequently and that will convert into more jobs for the people, more productivity for the people, more money for the people and hence the target of $5 trillion economy can be achieved by this way. Now for a self-sustaining virtuous cycle the economic survey has mentioned a 5-pronged approach. The first being it presents data as a public good as a public good data can be used in various levels to make use of it in a manner in which the resources are efficiently utilized and the products which are made for the people in general are targeted in the right manner. So a best example of this is the Aadhaar scheme the Jandan, Aadhaar and Mobile Trinity is working very well in India to make the subsidies go to the right people. So data is a public good can be utilized by the markets then second approach is emphasizing legal reforms. Now legal reforms are also very necessary for ease of doing business as in India we have more than 3 crore cases in the courts which are pending. So the third thing is policy consistency. Now policy consistency is always important to drive that confidence from the markets which will help savings then investments and then growth. So this is again very important fourth approach which is mentioned by the economic survey is applying behavioral economics. Now behavioral economics is also known as NUG economics in which the public behavior is NUG towards a favorable behavior to generate certain outcome. So we will come to this later in the chapter 2 of the economic survey. Going forward the fifth approach mentioned by the economic surveys focus on policies that nourish MSMEs to create more jobs and become more productive, reduce the cost of capital and rationalize the risk return trade off for investments. So now focus on MSMEs has been there because MSMEs are those jobs which can be worked upon and these can turn into very productive giants which not only give the production to the economy but also create more number of jobs and a lot of employment is generated by the means of their growth. So this is again very important. Now going forward in the first chapter last 5 years achievements have also been mentioned in which various reforms have been taken over the government. Now these are important in the sense for the main examination because these become the very important areas in from which the questions can be asked or some of the government schemes or programs and initiatives can be mentioned by the candidates in the main examination. So the first thing is that India has recently become 6th largest economy and it shows that India is moving towards macroeconomic stability and going forward it will also be able to achieve the 5 trillion dollar economic target also. So this is a significant achievement you have achieved in the past 5 years. Then again inflation has been in control. We have seen in the last 5 years due to policy consistency and due to the efforts by the central bank of India and the government the inflation has been kept in control in the band which has been mentioned by the RBI itself that is 4 percentage plus minus 2 percentage points. So the next thing is that we are moving towards macroeconomic stability, financial stability. The FRBM Act has been revised and committee was, NKCN committee was set up its recommendations were also accepted by the government and we are now moving towards fiscal discipline as well. So and some other initiatives are the Aadhaar Act of 2016 by which we are able to provide subsidies to the people and they are targeted in a better manner the loopholes and the leakages are being washed out in the subsequent implementation of the schemes. The second important area where the government has focused is the Jandhan Yojana, Pradhan Mandiri Jandhan Yojana in which financial inclusion has happened in real terms. More than 40 crore Jandhan accounts have been opened for the people especially women. So it provides financial inclusion to the people, money goes to the people and that money is saved which is in turn converts into investment. So this again is a significant development. On the infrastructure front electricity has reached every village, the Pradhan Mandiri rural electrification scheme has succeeded and the target has been achieved. Then again national highways, air connectivity through the Rodan scheme all have been emphasized and really we are moving very fast in the infrastructure domain which is again very important to provide more and more jobs and to provide supports to the firms to reach the markets etc. Then on the federalism front we have our country has progressed a significant development is the 14 finance commission recommendation which were accepted which has increased this divisible pool of taxes for states to 42% from the earlier 32%. So this is again a significant development and also due to the implementation of GST and due to the proper functioning of the GST council a proper cooperative federalism culture has been created in the country which can serve as a model for other schemes to be implemented. So this again is very important and the last important reform which the government has taken up is the insolvency and bankruptcy code which was brought out in 2016 and has presently resolved loans up to 4 lakh crore amount. So this is again a very significant achievement which has been done by the government. So some of the initiatives which have been mentioned in the economic survey a candidate must make a note of it which can be used in the main examination. Now in the third section of this chapter of the economic survey a blueprint for growth and jobs have been mentioned by the economic side. The first point in this is emphasizing growth which I already talked about growth target of 8% has been targeted. Then the second thing is the virtue cycle view. Now the virtue cycle view is taken from the economies of the Southeast Asian countries as well as China where the focus was mainly on investments which again in turn turn into productive firms which again in turn created jobs and then again a positive spiral in which the country benefited, the people benefited and the GDP increased and increased and increased. So this is again very important. Then again a very important thing is jobs. Now in India we are facing a jobless growth scenario. So for that also investments are very important and those investments if they are done in the MSME sector it will be more productive, more jobs will be created in the rural areas. People do not have to travel to the urban centers and as we know in rural areas the job distance is much widened as compared to the urban areas. So in that sense also this is very important. So and moving forward in the virtue cycle exports become very, very important. Now exports in India are increasing at a very slow pace and in India we have a trade deficit with many of the countries. So export is one domain in which we have an untapped potential, we have a favorable demographic dividend and hence exports can become another source of growth for India because we have untapped markets like in the African region, in the Southeast Asian region, even in the European Union we have untapped markets where India can move forward and in this also MSME sectors must be trained to make them export oriented. Now the next section of this chapter is going beyond the economics of equilibrium in the blueprint. Now as we have mentioned earlier we are moving towards a virtue cycle, a virtue cycle have been emphasized by the economic survey which will only come up when we save more and when we invest more. So for that there has to be many things have to be taken care of and money should go into the hands of the people who will in turn invest this and make the enterprises productive. Next is the navigating a world of constant disclurium. It requires three elements basically. The first is a very clear vision that what we need to achieve. Second is a general strategy to achieve the vision. A strategy must be laid out, the strategy can be a three-prong strategy like the Nithya Aayu Action Agenda and then we have a strategy for 2022. So that can also be taken up and the third is we must have the flexibility and the willingness to continuously recalibrate it in response to some unanticipated situations like any financial crisis or there are NPAs in the banks. So for that we must be ready to recalibrate it, the our policies in the right direction. So in this sense, this chapter in totality it points towards some of the very specific domains which I will mention that change in the modeling approaches, modeling from a equilibrium to a virtual cycle and then we have some behavioral insights going forward. We must move towards nudge economics, motivate people towards favorable behavior which will in turn turn into productivity. Then we have measurements of new concepts like job creation. We need to have specific data for job creation which we are lacking currently. Then we must have micro data also so that we can analyze the job creation scenario in India which can again turn productive and help the enterprises to target people for creating more jobs. Then we also must focus on sustainable development because in India we are also facing dangers of climate change as well. Then the fifth thing is distributions using technology to administer welfare programs effectively and thereby reduce inequality. Now welfare programs like MG Narega can be really made very effective if you use technology like the information and communication technology which can be helped for timely release of payments to the workers. So in this way technology can be used in the social welfare schemes so that it can come more productive, people can benefit more and more. So in this way we have covered the chapter one and the chapter one is very important because it provides a complete blueprint of the Indian economy which again becomes very important source for making questions for the examiners in the general studies, paper three economic exception. So we have covered this thing in our video, in this video and thank you very much. Have a nice day. Subscribe to our channel and click on the bell icon to get latest updates on upcoming videos.