 Welcome all of you in the next lecture which we are we are discussing about the economic survey of this year and already we have discussed chapter one in the last lecture and also we have given you a brief introduction about the economic survey. So in today's lecture basically we are going to discuss about the chapter two. So in the chapter one we have discussed about the world economic review and also about the state of Indian economy. So the survey in this first chapter summarizes the entire state of Indian economy and it also gives the outlook for the next year and now in the second chapter what the survey discusses is about the basic structural reforms which the government has done in the past eight years. So first of all let me introduce what basically the chapter second of the economic survey is all about. So chapter two of the economic survey. So in this chapter the survey basically compares two time periods. One is the time period of 1998 to 2002 and the second time period is about 2014 to 2022. So this was the Vajpayee led NDA government and this is the Prime Minister Modi led NDA government. So basically the survey in the second chapter discusses these two time periods and says that the time periods are quite similar in terms of the economic reforms. So first of all the survey says that during this period of 1998 or 2002 many structural reforms governance reforms macroeconomic reforms so economically that government did implemented many number of reforms. So this government implemented many number of reforms to revive the economy to revive the economy. So you know that in 1991 India had a balance of payment crisis and at that time the economy of India had become very bad but in 1991 we opened our economy. So from a socialist model of growth we moved towards a welfare model of growth right. So after 1991 a series of reforms started and the survey says that from 1998 to 2002 1991 the Indian government brought a new dimension to all those reforms in this period. In this period many different different reforms were brought to quite ranging reforms but despite all those reforms, despite the economic reforms which were gained to the economy right. So the gains the dividends of such reforms which was expected that did not happen that did not happen. So despite all those reforms brought under this period because of some external shocks because on some external shocks means something which was not under the government's control. Because of that some problems were created which was not able to get the benefit of the reforms. After that the survey says that as soon as these external shocks are over as soon as these problems were temporary in nature the day when these problems ended our economy grew very fast between the year 2003 to 2007 right. So the reforms of this time were not given to the government when the government was there because we will be discussing the external shocks. Despite all those reforms there was no dividend out of it but once these external shocks, once these temporary problems faded away then the real growth started between the year 2003 to 2007 and that's why this is also referred to as golden year of Indian economy, golden year of Indian economy okay. Right was growing at 8% so this same situation the same set of problems the same set of reforms which the government of that period brought the same thing is happening as of now. In this eighth year this current government has brought many reforms related to economy so many government reforms lie in this whole eight year but again because of some external problems because of some external problems this time growth was not able to grow as much as it should have because now you will see if we talk about gdp then gdp has slowed down after our pandemic but before the pandemic too in between 2019 and 2020 our gdp had only grown by 4% so our gdp has started to decline before pandemic also so survey says this is not because the government has not done any such reforms the government has brought all the reforms but the problem is there are some other issues which is affecting our Indian economy and now because of pandemic and because of conflict in Europe the problems are increasing and as soon as these problems are over as soon as the pandemic is over conflict in Europe will come to an end and there are some other historical legacy issues as soon as they are resolved then you will get the benefit of these reforms okay so basically the survey compares these two periods and they say that the government has brought a lot of reforms in its own aspect the government has brought many reforms gst insolvency bankruptcy code okay national infrastructure pipeline national monetization pipeline okay so a lot of reforms the government has brought but because of some other problems issues which are not beyond which are not for government control government control the outside things because of that they did not get the benefit of reforms but the survey says that as soon as 2020 this year suppose if the conflict ends suppose new waves of covid does not come then now the dividend now the gains because of that reform will come or that's why when India will enter insu amrit kaal then you will get the benefit of these reforms and that's why the survey says that we are very optimistic that by this year when the everything the dust will settle down the Indian economy will bounce back very strongly because of the structural reforms which this government has brought during this period so all those aspects are discussed in this chapter so basically what we are trying to answer in this chapter is that despite why despite all the reforms which has been brought by this government development and growth why not because you will always read gdp is growing at a much more lower rate before the pandemic also employment is a little bit of an issue so is it a responsibility of government or is it affecting the Indian economy so the survey says that government is has done a credible job in terms of the reforms but the problems are coming from outside the government or jaisi wo problems khatam ho ghi uske baad humara in reforms ka fayda dekhne ko milega so we will try to first of all understand this period and then we will come back to this period to iss tarige se iss poore chapter ka humlok understand karenge what this chapter wants to really get so first of all so let us read some basic introduction which has been mentioned in the survey so it says that Indian economy has undergone transformative process of new age reforms in the last eight years last eight years kam matlab 2014 se leke 22 so during this period the government has brought new age reforms new age reforms matlab reforms which were not thought of before reforms which are relevant of now big bang reforms like gst like financial inclusion through digital infrastructure to yeh sab new age ke reforms the reforms are aimed at two things one ease of living and ease of doing business so koi bhi reforms sab chate kyaan logon ke rahana aasan hojai logon ke li rahana taafi easy hojai and business ke li kaam karna easy hojai so all those reforms have brought by keeping into focus ease of living and ease of doing business then however despite the structural and governance reforms however despite the structural and governance reform along with strong macroeconomic stability so macroeconomic stability ka matlab ako pata hua India mein inflation under control hai India ka jo current account deficit hai wo pandemic tak thiik tha India ka jo current currency hai exchange hai wo bhi thiik tha so sab kuch thiik tha government de structural reforms lain jay se gst laya governance reform laia jay se bahua saare offense ko under the companies act decriminalize kia macroeconomic stability inflation ko 2 se 6 percent ke under control kia itne kuch hone ke baav jood the expected growth did not take place jo growth milna chahiye tha because of all these things wo mil nahi paya pure ni mil paya due to some legacy issues legacy issues matlab government ke aane ke pehle matlab 2014 mein when this government came uske pehle se bo issues thayin uski wajah se tike because of some legacy issues such as twin balance sheet problem so twin balance sheet have no just we are going to discuss in some time so this was the legacy issue which was not brought by this government this was the issue which was because of the problems created by the last previous government that is the upa government kuch same mein kuch problems thayin that led to the twin balance sheet problem and when this government came from problems so due to some legacy issues such as twin balance sheet problem and one of global shocks that followed one of global shocks matlab bhai pandemic conflict in europe so ek to legacy issue tha jo government jab hai to iss issue ke saath usko handle karna para because this issue was not brought by government this issue was brought by the last government so that's why it is a legacy issue and then the one of global shocks to global shocks mein do shocks wo gaye pandemic and conflict in europe that followed issi ki wajah se in saarik reforms ke baav jood the indian growth momentum did not picked up then this situation parallels to the period between this yahi same situation aapko ussame bhi dekhne ko mila tha when transformative reforms undertaken by the government had lack growth returns due to temporary shocks in the economy once these shocks faded the structural reforms paid the growth dividends from 2003 why cheese don't discuss kya ki iss same bhi us government de bohar saare reforms lai the but uska fayda dekhne ko nahi mila because of some temporary shocks aur jay se hi wo temporary shocks khatam hoon India's growth momentum picked up from 2003 so that's why these two situations are quite similar to each other as per the survey now first of all we'll try to understand the reforms of 1998 to 2000 and so saab se pehle aapko pata hoa initiation of the reforms ka bohata 1991 me to 1991 me kya hoa tha indian economy ke sa aapko pata 1991 ke pehle give a closed economy aamare economy ke har ek aspect ke upar state ka control hoa karta tha concept industries established phone game which industries will be established in India what they will be producing how much they will be producing what is the price of their produce everything was controlled by the state by the government and when you do that you kill the innovation when you do that you create a license search you give huge power to the bureaucracy which then starts to exploit that position and after 1991 jab yeh barriers khatam hoon gaye jab in restrictions ko khatam kar diya gaya when private people were allowed to implement what they wanted to do us ke baat ek innovation us ke baat ek aamara development ka real growth story pick kya so the reforms the real reforms in an economy started by 1991 right so the macroeconomic imbalances aafha mishra suno ke macroeconomic macroeconomic kya hota hai to macroeconomic ka matlab hai hota hai fiscal deficit inflation current account deficit so all those basic pillars of macroeconomic framework were at the trouble during the 1991 was sade macroeconomic fundamentals ko chuket hai by 1991 india had a huge fiscal deficit india had a huge inflation and india had a large unsustainable current account deficit which led to balance of payment prices in the last lecture of the economic survey we have discussed what is current account deficit so you can go and watch that if you have any problem with respect to current account deficit baap hain baat kya hai to inki bhajai se the government was compelled to bring the reforms right so in response to this situation the trade and investments were liberalized india entered into a liberalized privatization and globalization era LPG era now all those shackles which were holding the private people all those shackles were broken and the private people were allowed to play a bigger role in indian economy so trade and investments were liberalized import licensing what how can you get the things important us ke liye bohot saari license lakte tek for example i needed to this import the spend so i have to get that except approval take care so that process was huge time taking very cumbersome you have to pay corruption to many officers officers so now all those things were removed import licensing on almost all intermediate inputs and capital goods were done away with new restrictions for the firms were simplified the exchange rate that is the currency exchange rate was made flexible and allowed to depreciate to maintain the competitiveness again in the last lecture isi basic concept cum ne cover kya tha ki how does exchange rate whenever the indian currency depreciate depreciate ka matlab ki for example pehle 1 dollar is equal to 50 tha and now it is 1 dollar is equal to 55 so the rupee has depreciated and the dollar has appreciated so whenever my currency depreciates my exports become competitive but the import becomes costlier yam ne last lecture me discuss kiye was made flexible flexible ka matlab pehle kya tha ki 1 dollar is equal to 50 who decides it before 1991 it was fixed it was fixed it was completely controlled by the government okay jo indian state hai pehle boh decide karta tha ki 1 dollar is equal to 50 ho gha ya 1 dollar is equal to 45 ho gha likin 1991 ke baad reform aaya aur ye kaha gaya ki ab government usko decide ne karegi rather it will be decided by it will be decided by the market supply and demand market force of market force of supply and demand for example suppose 1 dollar is equal to 50 hain abhi kya hai today's today's currency rate is 1 dollar is equal to 50 and tomorrow the demand of dollar significantly increases the demand of dollar significantly increases to uska prize partha hain so us case me kya ho gha the dollar will appreciate and the rupee will depreciate so we will move to this situation so this is what this reform was brought by 1991 ki now this exchange rate will not be fixed by government rather it will be decided by the market force of supply and demand kitli us currency ki supply hai kitli us currency ki demand hai wo decide karega ki what will be the exchange rate so if the rupee demand increases agar rupee kya ka demand boh gha gaya to the currency indian currency will appreciate and the dollar or any other currency will depreciate so this reform was also brought in 1991 pehle amara everything was fixed now that exchange rate was made flexible and allowed to depreciate to maintain competitiveness the rupee was made fully convertible on the current account and partially on the capital account right now this is agar jo hum ne kail discussion kiya tha when we were discussing about the balance of payment the balance of payment me in the last lecture we have discussed about what is current account and what is capital account right these both things we have already discussed to current account me deekha tha any transaction any transaction which does not alter or change the asset or liability of indian residents and non-residents ticket so this we have already discussed okay last class meh moh baat kya tha ki any transaction which indian residents perform with the residents abroad any such transactions jis meh there is no change in the asset or liability so such transactions are mentioned in the current account is peh kon kon se wo temne baat kya tha trades in goods and services okay remit answers okay aur capital account me kya tha asset or liability change hotha hai example fdi fpi external commercial borrowings and others okay leave it abhi toh is tari kya se current account hotha capital account hotha balance of payment of a statement kya kya rahe hai ki current account was made fully convertible this is very important for prelims aap ke aasat tha exam mein ki current account was made fully convertible and capital account is made partially convertible so what do you mean by fully convertible and what do you mean by partially convertible the fully convertible ka matlab kya hotha hai ki after 1991 1991 ke baat government neng pahabara reform kya aur government ne kaha ki current account transactions ke liye for current account transactions rupee will be made fully convertible government said that in 1991 the then government said that the rupee will be made fully convertible fully convertible in 1991 the then government said that rupee will be made fully convertible for current account transactions okay in 1991 the then government said that rupee will be made fully convertible for current account transactions so fully convertible ka matlab kya hai current account transactions ka po example man lo i i am an industrialist aur mujhe kuch raw materials ko yorub se import karna hai suppose main india mein ek industry hai mera and mujhe yorub se kuch supply raw materials ko import karna hai okay i need to import raw material from yorub because mere industry jo india mein hai i need to use those raw materials so how will i purchase those raw materials i have to pay that confine dollar to mujhe okay so i need to pay him hundred dollar that company to 100 dollar mein launga kahaan se i don't have that hundred dollar i am an indian person i don't have dollar i have rupee i have rupee so what i will do for example one dollar is equal to 50 hai to what i will do is i will go to the rbi or banks any bank and i will give him give the bank itna dena padega mujhe rupee mein 5000 so i will give the rba 5000 and i will say that please give me hundred dollars because i need to get the things imported from yorub so kya rbi hai sbi mana kar sati hai banks mana kar sati ki nahi mai dollar nahi doonga ya 5000 nahi mai keval aapko 100 dollar nahi mai aapko keval 50 dollar doonga nahi nahi for any current account transactions i am saying for any current current account transactions you can convert your rupee into dollar without any restrictions you can convert rupee into dollar or dollar into rupee without any conditions without any terms and conditions itne paise mein for example aapko maal lo 100 dollar nahi 100,000 dollar karna tha 100,000 dollar karna tha kuch bhi hoja hai now for current account transactions that is for trade in goods and services basically jitte bhi trade ho raha export import uske liye kya rupee is not fully convertible yes rupee is fully convertible matlab rupee can be converted into dollar without any restrictions which can be imposed by the kyu iska function kya tha because 1991 ke baat we wanted to increase our trade production that company needs raw material usko kharidne ke liye dollar mein dena pahesa to pehle yeh sab cheeze restricted thi but upto incentivize that trade but now to incentivize incentivize trade integrate india integrate india into global supply chains okay rupee was made fully convertible at current account okay so this was about current account now let's come to capital account apdeko capital account mein kya hoega asset liability change ho raha on transactions ka matlab fdi matlab fpi matlab external commercial borrowings okay it is not fully convertible it is partially convertible it is partially convertible kyu kya problem ho kya ki isko meh fully convertible lein kye isko meh partially convertible kya because the question problem hai suppose aaj 2023 mein suppose let's take the example 2023 india ki GDP grow kar rhiye 10 percent se every people are very optimistic about indian economy the growth of india is taking place at double digits 10 percent pe india grow kar raha hai ho same to kya every country will try to invest in india right every country will try to invest in india to bohot zada country mein paesa aega bahar se to most of the countries malo us europe yaha ke investors ainge india mein invest karne so they will come with their dollars yeh aega malo 100 dollar invest karne yeh aega 200 dollar invest karne so in that case a lot of dollars will come to india but suppose now let's come the year 2024 or 2024 mein humara gdp because our indian economy is not that stable kuch bhi ho sakta hai kalko malo kalko pandemic aagaya okay to gdp 10 percent se do percent pe bhi ho sakta hai us case mein up investors will think now it's a time to take back the money kyunki india ki economy do percent pe hai kalko aarth koi ka aagaya kuch bhi aagaya tsunami aagaya ho our economy might collapse okay so us case mein the investors will try to take back their money investors will try to take back their money from india bahar lejana chahenge paesa to bahar lejainge toke dollars ko demand karenge jo dollar wo leke aaye the wahi dollar ko wo demand karenge to se kya hoga india ki upar dollar ka pressure bhar jayega because a lot of people will now come and take away their dollar to issi cheez ko rokhne ke liye issi cheez ko rokhne ke liye because these investments these investments are this investments are very much volatile are very much volatile it can come and it can go at any time kabhi bhi investors apna paesa likar bhi sakte to issi liye agar aap unlimited paesa kto aane doge to problem kya hai ki saal do saal ke baat boh lege mera paesa baapas bhi dedo us case mein shahid india ke pas dollary na ho paesa deni ke liye to india no dollar ko koi aur kharch kar diya ho so to stop this thing similarly for external commercial borrowings external commercial borrowings ka matlab kya hota for example india mein kumpani hai reliance aur ye hai us ka bank aap supose hum ne ye loan liya hai us bank se india mein reliance kumpani ne us bank se 100 dollar ka loan liya hai so such borrowings are known as external commercial borrowings when an indian company takes loan from abroad so for example if reliance has taken the loan from us bank aur us same one dollar is equal to 50 rupees tha to us case mein reliance ko kithna naut aana padega ek saal ke baat baan lo ek saal ke le loan liya tha for one year reliance took a loan from us bank for 100 dollar now after one year reliance has to pay back to us bank to kithna pay kareega e one dollar is equal to 50 okay to reliance ko kithna paysa chahiye ek saal ke baat it needs 5000 rupees to 5000 rupees ko mo dollar mein convert karega aur lotta dega 100 dollar okay lekin kalko man lo agar one dollar is equal to 60 rupees ho gaya currency india ki depreciate kar kain because generally hoti hai asi problems now reliance ko kithna paysa deena padega ek saal ke baat because reliance po to 100 dollar dena hai to 100 dollar ke liye usko kithna rupaya chahiye ho gaa 100 dollar in two 60 rupees to kithna ho gaya 6000 to pehle usko keval 5000 chahiye tha lekin because the currency has depreciated now reliance needs to give much more extra money ab usko deena padega 6000 so because this is the problem with external loans that it is subjected to currency rate fluctuations aur iski hu rsakta hai ki reliance kyu pa itna burden bade jaye ki reliance might not have that amount of money ye to mein chota se example liyao 5000-6000 but ye karoro mein hota hai and generally reliance is a very big company but agar ek chhotisi company ko kola chhot de doge ki jao ab jitna loan le na hai bahar se le lo to koi bhi chhoti chhoti company sab bahar se loan le le le le le lekin kya uske pas capacity hai ki kalko currency depreciate karega so that country can pay that extra amount no iski liye iska problem boh zada hota hai for this thing rates and goods and services dik hai but capital account transactions ki upar agar aap rok nahi laga hoge to ye kaffi zada unregulated ho sakta hai I will make a company 2 din ka company hoga I will take $1,000,000 from abroad FDIF pay koga ap nahi rok hoge to boh zada investment kareng ekal ko nikal lenge so this is very volatile this is subjected to a lot of things inflation pe depend krta hai aapka currency ke ratings ke India ke government ke ratings pe depend krta hai inflation pe depend krta hai currency rate fluctuations pe depend krta hai to isli this is this particular sector capital account is very subjected very volatile isli government ne kaha hai ki it will be partially convertible matlab aap restrictions hai ki how much rupee I can convert into dollar or how much dollar can be converted into rupee so for example a american citizen wants to invest in India to kya boh kitna bhi FDI la sakta hai ya FDI fund portfolio investment la sakta hai uske per restrictions hai how much dollar will be converted to rupee because agar usko india invest karna to rupee mein karna parega to go dollar leke aayega aur wo rupee mein convert karega to kya boh unlimited conversion kar sakta hai nahi isli capital account pe hamara rupee hai it is partially convertible in future ho jayega fully convertible when indian currency is strong when indian FDI FDI ka jo investment india mein aata hai wo stable hai boh zada fluctuations nahi hai to in future it might happen but abhi kya hai that's what the survey aur aapko patahi hoega iske baare mein so that's what it is written ki the rupee was made fully convertible on the current account and partially on the capital account and this happened during the 1991 reforms okay continuity in reforms with a renewed impetus matlab ye jo reforms 1991 se chal rahe theye sade reforms isko ek naia push mila this reforms get new boost at the end of the year that means from the period of 1998 to 2000 and 1998 to 2000 so these reforms caught a huge major push by the bhajpayee government unni reforms ke upar aur zada reforms laega ish particular period mein on konse reforms laega it is let us see first investments were liberalized okay aur zada liberalization kiya gaya okay to encourage FDI kyunki india was needing investment bahar se investment chahiye India ko isli liberalized kiya gaya the telecom sector was reformed by a new telecom policy 1999 to new telecom policy aata 1999 mein dis kain the telecom sector ko bhi kaafi zada liberalized kiya gaya it was open for private sector participation with a strength and regulatory regime try to try kya hai it is a telecom regulatory authority of india which regulates the entire telecom sector so it if apne private sector ko participation allow kya aur second apne kya kya ek regulatory body laia jo ki ye ensure karega ki this private sector participation takes as per the law takes as per the but the competition in ke beech mein fair hona chahiye they should not practice something you know a non-competitive thing change from the fixed to revenue sharing model this was a very very big reform fixed to revenue share model ka matlab kya aata yeh samajwa aap so change from this was a very important reform which was brought in the telecom sector changed from fixed to revenue sharing model jiski bhaja se private sector participation kaafi zada adha so pehle ke mal bs nil mtnl yeh sab tha uske baad it came okay airtel aaya boda phone aaya okay aur bhi bohot saari companies aayate the fixed to revenue bhaisa kya change ho gya kit led huge private participation so see for example this person okay this person wants to operate a telecom wants to get a telecom license okay isko apne ek naia sim ek naia company ko nahi for example airtel to malu mujhe kuch holla ho okay so this person wants to bring a new telecom company okay to uske le pehle iska condition kya tha ki this person needs to pay 10 crore for example let us i'm just giving an example this is known as fixed price model fixed model irrespective of aapne to do dhan ki company aabi aap revenue generate bhi nahi kar raheo malu aap revenue generate bhi kar raheo for example 10 lakh ka aap haar saal kiba 10 lakh ka maare ho but still government has fixed ki koi bhi naia telecom company agar kologhe to aap po ek fixed price dena padega that is 10 crore every year to ye to koli nahi pahega because this person only has 10 lakh abhi iski company start hi hu hi hain to abhi iska pehla saal dosa ka generation a revenue okay well 10 lakh hain aur aapne fix kar di hai 10 crore so this company can never give 10 crore to isi liye telecom telecom license pehle kaafi zada control tha nahi companies aahi nahi pah rahi thi because government ne boh bharaye price cap lahata rakhata ki aap po itla doge tabhi aap po naia telecom license milega ya aap aar saal kitta dena padega abhi kya kar diya government me now if this person wants to get a telecom license usko apne naia telecom company banana hai so now that person does not need to pay a fixed model usko koi fixed price nahi dena hai jitna uska revenue hai uska ek certain percentage usko government ko dena certain percentage to government so aap di yeh khus hai iska 10 lakh bhi aayega to uska 10 percent dena hai to 1 lakh dena hai kal ko 2 crore uska turnover aaya revenue aaya to 2 crore ka boh 10 percent dega 20 lakh so now it will depend upon how much revenue exactly it is generating to up chote companies bhi aasakte hain pehle kya tha 10 crore dena hain ka okay power kiske pas over reliance ke pas isli sbse pehle company usse meh reliance di private meh usse meh ka jo reliance tha but abhi kya hain chote companies bhi aasakte because aap koi fixed price nahi dena hai jitna kama uska do to kalko meh 10 lakh kya meh 2 lakh kama uska meh paisa denga to iski boh sa aap ko pata ek series of telecom companies aayat usse meh air cell doko moh okay yeh sare companies eventually fail kar gain because government ne kya kaha simple apne jobi revenue hai uske upar ek percentage you pay me so in that case many people entered into this field but eventually they prove to be unsustainable okay but private sector participation kaafi zada ensured kya so this was a very important reform from fixed to revenue so it gave a chance to small players also to come into this particular field so yeh sb ho gya then sati saath uske bazaar hua kya uski bazaar hua kya it led to the it sector boom because it sector ko boom pe kya chahiye internet chahiye and internet kond provide kareka telecom to telecom sector meh reform kya apne to it sector bhi khaafi zada aaya enforces bipro sab usse same aayate which has led to widespread spillover benefits bohsane benefits iski bhaja se hain meh dekhne ko sati saap 200 2001 meh ministry of disinvestment bhi bana aayega pehle yeh department tha now it got converted into ministry that shows that this government was very much serious to disinvest isi meh apko bata hain maruti suzuki meh bhi government termed a stake ko disinvest kya tkya so ministry of disinvestment was created it was upgraded from the department of disinvestment launch of then last days infrastructure project of independent india the golden quadrilateral ko bhi launch kya gya sbse important infrastructure project tha jo deli ko kolkata idhar chen nahi aur idhar mumbai isko connect karta tha so this was one is a golden quadrilateral project so yeh kehra kya chaha ispure points meh ki jo reforms 1991 se start huaitein usko wajpayee ji ki government ne aur zada ache se implement kya aur ne reforms leh aur zada push kya okay aur iski saati saath bohot saari structural policies lie gang to address the macroeconomic imbalances macroeconomic imbalances ka matta aapka growth ke saath inflation bhi control rehena chahiye current account deficit bhi control rehena chahiye to government ne ek teraf reforms line to push investment to ensure private sector participation to ek to reform ka aspect ki ho tha kya ab zada a zada loko invest karne ke liye aap us process ko reform karte but second aapko yeh bhi rekhna parte kya aapki macroeconomic imbalances teek to rahin yeh okay to uski liy government ne kya kya government ne frbm act na ya fiscal responsibility budget management act iski under fiscal deficit target ko limit kya gaya aur for example kal ko maalo ek doha bara crisis aajata hain mujhe economy ko reform karna hain to reform karne ke liye meh kya karunga naine projects karunga to government loan pe lehi gi loan pe lehi gi aur deti rehi gi loan hai na ho sakta hi yeh cheez for example aapke pas maalo crisis aajata kya crisis nikalne ke liye kya karunga loan loge aapko crisis aajata aap loan leh reho fir naia crisis aajata fir aap nahi loan leh reho iss se aapka guzhara to chal raha but loan chukana bhi to padega hai na kaptak aap loan se bhaag hoge to this is a problem with fiscal deficit agar government ki zada ho jaati hai to isli government ko asa nahi ki reform karne ke liye kitana bhi loan lo, kitane bhi kharch karo, sabko puri India me sabko ek ek lakh rupee har maine barte chalo yeh bhi government kar sakti yeh loan leke but at then the government will have to pay the interest or interest dega kone future generations kyunki to ensure intergenerational equity you have to limit how much you take the loans our fiscal deficit ko constantly declined kya so this is what is macroeconomic stability second deregulation of interest rate, interest rate jo banks charge karata lending o deposit to usko bhi deregulate kya gya it was aap apne se bank decide kar sakta hain enactment of the sarfisi act to sarfisi act me kya hai ki for example maine ko loan leh rekhaya bank se aur maine collateral I have kept my house as a collateral aur kalko maine loan nahi chukhaa pahar hain but now under the sarfisi act one of the reforms which was made is that the banks can take your house your collateral without the intervention of the court without the intervention of the court this was one of the provision which was brought under the sarfisi act is ke lawa bad banks and other things bhi the but this was some of the one of the major reforms under the sarfisi act so it allowed the banks to recover their dues by proceeding against the secured assets secured assets matlab jobi assets hum jobi humada jo collateral hain of the borrower of the borrower secured assets of the borrower of the borrower that means nothing but collateral without the intervention of the so fast track kya gaya spore process so two type of reforms were brought by this government one was the investment related reform and the second macroeconomic imbalances yeh sab reforms lain rikin iss ke baap jood kya hua sarve ne kaha growth mila nahi tkaya so similarly the growth in the non food traded by the schedule commercial banks to ab dek sakte ho 2000 se kyunki jitna zada bank lend kar rahe hain bank lend kar rahe us ka matlab kya hai log demand kar rahe bank loan kab dek hain jow log demand kareng log demandi nahi kareng to bank loan kum hai so ab dek sakte ho iss pohre period me bank ka loan is on increase is on is increasing that shows that more and more industries are coming and they are investing they are requiring loans they are taking loans so that is a good picture dek hain. lekin us ke baap dek hain constantly humada jo banks ka credit hain dek lain kar rahe ho kyun kar rahe ho hum log abhi dekhte hain chikya but one of shocks that overshadowed the reforms lekin baap jood in sarhe reforms me growth development dekhne ko mila kyun nahi hai na itne sarhe reforms aaye but why the gdp was not able to increase during that particular period so the survey says this is because of some external shocks which is not under the government's control. pehla shock ke aaya sanctions by the u.s. jab india ne 1998 ke pokharaan mein nuclear test kiya toh ke baap us ne india ke par bohata ekonomik sanctions laga dee hain toh usko india ko bohata problem hain. second iss period ke same 2 successive droughts aaye the tootuk successive droughts also came during this period to yeh big problem hain ek external ab iss me government kya kar dekne. ab monsooni nahi ho hain toh iss me government ka toh koi hat nahi hain. similarly uncertainty rising to the end of tech boom or 9 11 at times. what is tech boom aapko bata 1990s me jab dot-com revolution aaya bohata sarhe companies dot-com karke aaye toh iss case me kya hoa aise bohata sarhe startups ko bohata zada investment dea gaya kyun ki usame ek naya cheez tha logon ko laga ki iss ki sector ki growth bohata chi hai toh aise bohata sarhe startups aaye aur bohata zada ono ne pass out hai liya market se lower investment and other things. but gradually most of those startups collapsed. most of the startups were unsustainable and most of those dot-com revolutions dot-com startups collapsed and that's why it was the end of the tech boom. toh jo 1990s kamaejo dot-com revolution aaya tha gradually by the end of that ticket by the 2000s most of the startups which were technology led which were based on dot-coms they started to collapse or usse capital market pe kaafis aada effect pada so end of tech boom and 911 attacks ke baad bhi aapko global uncertainty kaafis aada increase oga ya so because of all these things the reforms fail to pay any dividend because of all these things the reforms of 1998 to 2002 failed to pay dividend failed to pay the india's participation india's participation in the global boom of 2003 to 2008 to jab while the global growth averaged from 4.8 percent during this period the indian economy grew at 8 percent more than 8 percent 9 percent 10 percent okay so this is the first chapter first part of this chapter jo discuss kata 1998 to 2002 ke bhi jme kis tari ke se reforms ke baav joot growth tekhne ko mila nahi lekin jase wo shocks khatam hua hai ap economy apne sahi roop me aage par hi. so now the survey aapko batata hai it compares ki jo 1998 to 2002 ke bhi jme hua tha wahi sale cheez ho raha 2014 to 2022 ke bhi jme this government has been very much proactive aggressively this government hai boh sade reforms lai hai but in reforms ka fayda dekhne ko nahi mil raha hai aur ish mein responsibility kiski hai na ki government ki baaki baaki aadar cheez ho ki okay so let us try to see this government ne kyaise reforms ki hai jase last last jo 10 year america 1998 to 2002 ke bhi jme waha pe government ne kyaise reforms ke thi yaha pe jo government ka reform hai it is based on sabga saad sabga because right so this has been a very structural change in terms of how we need to develop so pehle development was only led by state government and private people but is government ka yeh fokus hai ki kis tari ke sem development ko decentralize kare democratize kare so that more and more people participate in India's developmental story that means how you can include the farmers in development process how you can make development jan andolan that means sub people participate people like you and me also participate in that developmental process ish lii iss government ke jo reform policy hai ush mein paradigm shift dekhne ko milta hai ek structural shift ek bohot bara change dekhne ko milta hai as compared to the reforms which were brought by the earlier government ish lii iss government ne kaha hai ki these are the reforms for new India that is based on the pillars of sabga saad sabga because right so yaha pe aap dekhon kis tari ke ke jo reforms lai gaya hai see this is so the reforms are again focused on ease of doing business and ease of living yeh pehle bhi tha but ab dekhon government ne iss poore aat saal mein reforms ke kaun se 4 pillars nahi hai pehle aap hi raha hai creating public goods take care creating public goods right the public goods ka matlab goods which can be used by anyone for example public goods ka matlab hoge aap ka highway so if a highway is being constructed it can be used by any person so such goods has been created at a very rapid on a very rapid scale public good second public digital infrastructure public digital infrastructure ka matlab upi digi locker so these are public goods so public goods matlab goods assets which is not for one specific class rather it can be used by any set of people in any part of the India so government ne aise public goods ka api zada create kiye hain we'll see what are those public goods and second trust based governance you know without trust you can never have social capital without trust you can never have social capital the trust hote hain to reform jaldi aateh jap tak hum lo government pe trust nahi karengi government hum pe trust nahi karengi private industries government pe trust nahi karengi and the government will not trust the corporate people tap tap development ho nahi sakta hain so that's why we have to trust each other for example ek problem yeh hota hain ki tax harassment bohot zada hota hain aap kabhi kabar bool jaate ho pra tax file karna toh ke mat income tax department aap ho kaafi zada haras karte hain that is that shows that government does not trust the people ho sakta hain hosabni se galti se hua ho my mistake he forgot or because of some other reason he was not doing well so kya usko haras karo gaya so now the government has tried to remove all those things so that the people are able to trust the government and government is also able to trust the people right so this is the second important pillar of the reforms which the government has brought so it has decriminalized many provisions very simple simple civil penalties has been decriminalized this time because the government wants that people should trust it and government bureaucrats officers should also trust their people third important pillar is the agriculture productivity right so this is basically for rural India how you can ensure their participation in the developmental story their participation in the developmental story because until and unless you don't reform agriculture you're not able to reform the rural India and if you're not able to reform the rural India your economy can never grow as per your expectations because maximum look we're at the end or we look basic goods to demand to jump to pullo kipas pass the idea that we will demand the current order we're going to do the new manufacturing industry we're going to be ticket so China me here was up in China if you will see what are the rules and areas of the cafe zada reforms like and just what are the new reforms like a school skill development agriculture reforms he said he's a reforms key like a ruler in the school because of the reform and when the rural indians were reformed there was a huge demand from that particular sector was a bit of a demand and that compelled or that English next the industries to build new manufacturing plant because they wanted to cater for that demand to increase the agricultural productivity and finally since 1991 this reform has been made how to ensure more and more private sector participation are the four pillars first creation of public goods so that normal people participate this is for social capital people have a cohesion people trust each other government trusts people this is for reform the rural India and this is for ensuring the private sector participation so these four pillars have been the major areas where the government has reformed and in the fayda kya hoga is subcheese ho ka efficient resource allocation resource for better way to allocate kya jaya jaya jab sublogh mil ke bhaagidari rakhay yoos developmental process ka and overall this will lead to the enhancing the productive potential of the economy and its people so overall iski bhaise india me real economy growth dekhne ka milega. So this is what the survey basically says so the government has brought the new india reforms new india reforms ka matlab sabka saad sabka vikas aur uske liye government has made four major areas jaha pe government in reform kya hai pehla on the focus on public goods ka creation press-based governance private sector participation and agriculture productivity so such information such diagrams so these are the informations that that's why yeh pdf aapko milenge so that it's easy for you kya prelims aashe khatab hota uske baada mains ke liye in notes pe rely kar sakte ho because survey mein bohot saare cheez lik hain but we don't have to read everything because that is not relevant for our exam tk what is relevant is everything has been written over here now we'll try to see ek ek karke chaaro aspects ko dekhte hai pehla kya fourth pillar mein pehla pillar the first pillar is creating of public goods so public goods ka main baat kya what are the goods which can be used by any all so road connectivity liye baharatpala project laaya gya port infrastructure liye saadar mala laaya gya aur new airports ke liye uran laaya gya so all those are creation of what physical infrastructure the national infrastructure pipeline and national monetization pipeline sabko pata ho gha let me give you a brief summary so national infrastructure pipeline kya in the pipeline kya hota hai ek hamara map taiyaar hai ek hamara pipeline is ready pipeline is ready pipeline is ready ka matlab what india will be doing in the next five years in terms of infrastructure sector to hum lo ka total 111 lakh crore kharch karna hai hume apne infrastructure ke liye ish mein road railways ports in pyaayenge to agle pasal mein lo kaha pe kya kharch karenge kispe kitna kharch karenge energy sector mein kitna kharch karenge so yeh pipeline taiyaar kya gya hai so that any investor feel confident that yes India has a big plan of the coming five years and India is already you know decided how much it will be investing. So such kind of pipeline has been created for the infrastructure sector so this pipeline has been created by the government in the year 2019 and for this, where will the money come from 111 lakh crore kharch hai aapko okay ush mein kuch centre degaar okay centre ka kuch share ish paisa mein state ka kuch share ish paisa ish mein private people ke upar kuch responsibility hai three no mil ke ish ka paisa degaar take care or national monetization pipeline has been brought for two purpose raise resource for national infrastructure pipeline ish mein paisa aane ke liye paisa kain se chahi government ko viske through government pasal aayenge and second to enhance the productivity of to enhance the productivity of existing assets to enhance the productivity of existing assets for example aapko padau ka national monetization pipeline mein hona kaya for example suppose this is a railway station and suppose this is a airport Adani has got six new airports okay so airport abhi bhi government ka hai but kyunki government ke pas itta resource ne hai government ke pas itta expertise ne hi hai time ne hi hai ki ush airport ko manage kare to after the construction the government monetizes it jyasi aap apde youtube channel ko monetize to asi government de apne airport ko jo existing infrastructure hai the government gives on a for a specific time period 10 saal 15 saal 20 saal ke liye to a private people ki ab aap aap aap ko operate kare aur her saal jitna aap revenue generate karte ho uska ek issa aap hame dete rahe na isse deko fayda kya hoa pehla to government ke pas ek fixed resource second you know that private people operate the things in a much more better manner as compared to government sector jab aap airport jo aga tab deho kitna well planned hota her cheez the hot jyasa operational hota hai operational ka matla for example e airport hai the private people kya karega usse zyada se zyada resource madab zyada zyada revenue generate karna perega is particular hi haap ek shop open karega hi haap ek restaurant open karega usse pase kamaega so private people will try to utilize that area in the best possible manner but ab railways me chal jo railway station ki pas itna bada land hota hai itna bada railway station hota hai but in most of the railway stations you don't have the place to eat you don't have the place to relax the areas are simply wasted it is not productively utilized to go isi railway station ko kalku maal jo aap private people ko deti ye for 20 years kya 20 saalta ka ab is railway station ko operate karo so ye kya karega now this person will try to maximize its revenue to wo kya karega ek restaurant ko hi haap ek open karne ke li permission de dega koi bookstore open karega di kye any other artifact kuch handicraft ke shop open karega di kye so that private person will try to maximize the revenue generating from that particular asset isi ko kete monetization the government monetizes its existing infrastructure to a private people for a particular duration aur is pisaal ke baat kya hoga ye airport baapas government ke pas chal daega so by this thing raise resource and second productivity to aap tis le dekhoge airport jaoge to everything is well planned aur usse airport saamehsha profit mil hain because wo luk us area ko kaafi ache se plan karke special shops and other things ko open karte hain jo that zyada zyada wo resource generate kare but that is not the case with railway stations aur ek example main le liya aur asi jitli bhi government ke infrastructures hain wo jitna resource generate kar sakte hain harsal wo takkar nahi pata hain because of poor planning poor implementation and other things like that isle government has tried ek boh bara scheme lai ye 2021 me jhaap ek government jitli bhi aapne infrastructures hain wo ap monetize karegi so these are the good big reforms this government has brought now ye dekho union government kar jo capex hain because hum le dekha public goods highway banane ke liye railway banane ke liye paisa chahi hain to capital expenditure as a percentage of GDP capital expenditure as a percentage of GDP matlab capital expenditure ka matlab bahi aapke baas public goods aapya matlab aapke baas railways roads ports highways tk airports aur baaki cheez hai to esko kete capital expenditure to ye dekho aapka constantly abhi dekho aapka it is close to 3.5 percent of GDP tk f by 23 me tk to ye dekho aapka pandemic ek kaafi zyada increase dekhne ko mila hain to ye hum nuk last year last chapter me bhi I think so we have seen this yag le chapter me hum dekhe yeh cheez kuk yeh stari ke se government ne after pandemic zyada se zyada paisa capital expenditure me kharch kya hain tk yeh pehle ki governments kya karthi thi zyada se zyada revenue expenditure pe kharch karthi hai aur revenue expenditure ka matlab salary dena subsidy dena yeh sab cheezi dena to isse koi zyada fayda nahi hota ekonomi fayda basically capital expenditure to agar 100 pe aap load banane pe kharch karthi to ekonomi ko ko 400 ka fayda hota that is 4x this is the beauty of capital expenditure and now the government has made a qualitative shift issi ko kete qualitative shift qualitative shift in terms of in terms of its expenditure to paisa kharch karna hain but kharch karne kya quality kya hain kya usko subsidy me dena hain ya kya usko me hum loko roads banana hain so now this government has focused on capex creation right so this is again important aapka now creation of public digital infrastructure this has been the new reforms issi ko hum lo kya sakte pehle digital world link aaj aapko bata 21st century the world of digital aaj technology ki bhaja se a lot of things has been simplified as driving license panna aaj aapko ek bank account konle ke liye ke wal adhaar kart ke through a bank ko account open kar sakte ho okay so these are known aap kisi ko easily paisa transfer kar sakte ho by UPI pehle aapko bank main line lakke aap bohar saare problems ke through a paise transfer karthe the so all these things are public digital infrastructure okay ye bohap important reforms se because issi hua kya hain ki more and more people have been brought into the financial sector financial sector ka matla banks and bfc in mein log aag hain pehle ye log baharthe hain to jaisi kisi country ka financial inclusion hota hain us country me kya hota hain bohach saara fahida dekhne ko milta hain po example pehle kisi ko loan leena tha to wo unofficial form source leeta unformal informal source leeta hain aur wo informal source bohach zada exorbitant trade charge karta hain but now that that person gets include in the financial sector that is a banking sector to wo kya kareka apna kuch paisa deposit karega us deposited paisa se government wo us bank loan de sakti hai kisi ko sati saad ab aapko loan leena banks me that is formal source leena asan hain interest rate bhi charge kum hota hain okay so now the government has focused on public digital infrastructure so this emphasis during the last few years has been a game changer even kya sa aap dekh lo jo jaan trinity hain pradhar mantri jandhan yojna mobile phones or adhaar iske through aap tarikli a benefit transfer kar raheo to pehle kithna corruption hota tha isme aaj har ek subsidy ka paisa aapko dbt ki through aajata aapko apne aapki account mein so that's a very important thing fit dekwo aapke paas the population covered with bank accounts has increased from 53 percent to 78 percent to kitne loko ka bas bank account hai to now it has increased to 78 percent in 2019 to 2021 dekwo phir aapke paas dekwo aapke paas digital verification ke liye ek yc tg locker upi yeh saap all everything has supported financial inclusion so these are known as public digital infrastructure jo pehle nahi tha yeh abhi aaya hai upi adhaar yeh saap abhi aaya hai aapka so isse socha aapka life kithna simple ho gaya hai aur issse government ko kaafi zada fayda milta because corruption waat karm ho gaya isse so these are known as public digital infrastructure aur this is where India strength lies India strength lies ko koi question puchta hai ki India china kasat compete kese kar sakta ekonomikali bhi ke not china ke baas bohas other resources compared to india but india lead kaha pe karta hai in terms of these public digital infrastructure to aaj india ke diplomacy mein kis tari ke sam upi infrastructure ko bangladesh me liye hai kis tari ke sam digi locker ka facility afrikan countries me liye jaai kis tari ke se technology ko use karke logo ka life simplify karna they are the government of india jo india ka heh strength lie because india is a huge technological sector very robust technological sector and india can leverage that strength in terms of its diplomacy then aata hai amare paas aapka then some other reforms has been brought like on dc open network for digital commerce and account aggregator framework okay so on dc and account aggregator framework has also been brought and similarly pm gati shakti to ye three cheez hai ek ye ho gaya ek ye ho gaya this one and this one so pela dekne baat is on dc open network for digital commerce pehle kya hota tha for example if this is basically e commerce ke li lai gaya hai this on dc is for e commerce sector ab dekho e commerce sector mein kya hota hai for example if this is amazon and this is flipkart to pehle for example aapko patta hai ki amazon ki ek marketplace hai jaha pe wo sellers ko connect karta hai consumers ke saath so suppose these are the sellers this is shop one this is shop two and this is shop three and these are the consumers on this side to pehle iss seller ko kya karna patta tha amazon package register karna patta tha aur aapko amazon ka app download karke is yaha pe aake aapko apna jo whatever you want to buy you can buy so these is this is known as platform centric model iss ko hum lo kayaate hai platform centric model so platform centric model ka matlab everything depends on platform for example this seller one does not register with amazon amazon mein seller one ko register karne se mana kar diya ki nahin aapko mai register nahi karunga diya to aap jo consumer hai ye to aap kabhi connect hi nahi kar sakto seller one ke saath through amazon yuki amazon pre-registered nahi hai so that's why everything depends on this amazon platform with seller bonds register it will depend upon the amazon this kya kabhi kaba exportative practices bhi karte thi ye companies similarly aapko flipkart mein aake seller ki din register karna padega and then you can buy consumers can buy but aap kya hai the government is trying to shift from platform centric model to open source model aap open source model mein platform ka relevance ka mojayega for example aap government kya karegi ek cloud infrastructure banayi hi us cloud infrastructure mein jaa ki koi bhi seller apne aapko register kar sakta hai any seller aap amazon ka aapko register nahi kar nahi aap jaa ke is cloud infrastructure mein jaa ke register kar liye now aap kya karega amazon ka apna platform hai ko is cloud se connect hojainega similarly flipkart jo hai ko is cloud se connect hojainega matlab aap as a seller you don't have to register individually on amazon or flipkart you simply have to get registered on the cloud infrastructure and now the amazon will connect itself to this cloud so now all the sellers which are registered over here they will be directly visible over here now in this case mein there is no real power with this amazon platform ki aap amazon ke pas koi power nahi raha kisko register kar nahi kisko deregister kar nahi so aap kya usa exploitative practices jo hoi wo khatam ho jayenge so this is known as open source model any seller can join this cloud infrastructure and by that they can directly automatically get visible on that platform this ke bhi usa ek aur fayda ho ki aaj ke bol amazon flipkart aap ko bohata rahe hain se platforms aap kya kyi simply karna kya aap ko is cloud se connect karna hai okay that's it so this is known as on dc open network for digital commerce that is the attempt has been made to shift from platform centric to open source model okay iss se kya ho gha ye pura sector democratize hojainega revolutionize hojainega tk iss ka responsibility aapko dpi at ko hain which works under the ministry of commerce industry to usu koi ye kaam diya gaya karne ke liye then second is account aggregator framework to account aggregator framework ka matlab kya hota hai for example i am a person mere pas kuch bands me account hai mere pas kuch insurance product hai main hai kuch loan le raha hai kaha hi aur se to itne saare accounts me mai transaction kar raha hoon tk hai so for example i have a loan mera kuch insurance product bhi chal rahe main hai mera kuch bank account hai in sbi in access bank in hdfc to ye saara scattered hai all these things are scattered to account aggregator framework kya ho gha now there will be a private person who will try to aggregate all those accounts who will try to aggregate all those accounts for example this is the account aggregator this will be a private company it will be a private company ye kya kadega with the consent of this individual itse individual ki bohol saara accounts hai which accounts hai banking account hai insurance account hai banks me bhi itse 5 jaga account hai insurance account hai kye hi se se le loan le raha hai tk hai toh aise bohol saara accounts hai uspe in sub ko aggregate karke ek jaga lana this is known as account aggregation tk hai toh this this company account aggregator will ask the person that kya mai aapke bank pe detail ko bank se leh sakta ho so that i can put this information in at one point of place to ye se permission leega consent leke ki haate kya aap mera detail mera bank se leh sakta ho so bank will provide them the details similarly insurance companies similarly these companies and all those list things will be listed at one place so these are known as account aggregator framework ye bhi bohol important hai technological reform which the government has tried to plot and then pm gati shakti to pm gati shakti mein kya hai kya aapko pata ki in future hum lo bohol zada infrastructure sector ke reform karne ke liye projects laare roads banayenge railways banayenge and other things like that lekin ye sare ministries jo hain ministry of railway ministry of road transport and highway tk ministry of court shipping ye sare ministry aalagalak tari ke se kaam karate hain toh se inki bheesh maa koi coordination nahi hota toh kis tari ke se hum lo ek aisa digital platform banaye ek digital platform banaye jaha pe maal lo ki ye road ban raha hain. So, this digital platform pe ministry of highway ka this road project is visible aur suppose yehi se railway track jaana hai this is the railway track this is the roads to digital platform me kya ho gha yeh sare ministries ka as a solar ministries ka jitane bhi kaam chal rahe hain everything will be provided in a single digital platform so that yeh dolo coordinate kar sakte hain apna kaam and resource ko share kar sakte hain. So, let us coordinate at this junction here pe hum lo coordinate kar sakte hain apas mein so that delay nahi ho aisa nahi ki road chakar mein railway ka kaam rukawa us tari ke se hum plan karin. So, sare infrastructure line ke ministries ko ek jaga ek platform po coordinate karne ke liye PM gati shakti laaye gaya hai. Gati shakti ka matlab infrastructure ko gati laana chaldi chaldi reform ho sakhe. Aapko pata ho ka pehle road ban jaata tha aur road ko phir khoda jaata tha gas pipeline bhi chaane ke liye because of poor coordination between the two ministries and a road ban chuka phir road ko wapase khodo phir us mein gas pipeline laao. But agar yeh pehle hi pata rahe tha ki waha se road banna hain aur gas pipeline bhi chna hain. So, those two ministries would have coordinated initially. So, ab by PM gati shakti yeh coordination ka jo gap tha usko khatam kiya jayga by technology. So, this is again a very important reform. Is tari ke se government mein, is sal is puri tenure mein bulk of focus public digital infrastructures ko banane mein diya hai. Then trust-based governance again second pillar to isme aapko insolvency bankruptcy code yeh kya hota yeh aage hum nu pekhenge. Is tari ke se agar malo meri company doob gayi to kya kujhe haras kya jayga ya kya mere paise ek easy way hai jise mai apne company se exit kr sakta usko page ke. So, that is insolvency in bankruptcy code. So, when you get bankrupt, how can you make a safe exit out of that company? Then vera aapko pata real estate mein, bohzada transparency pehle bohz corruption tha. Aap paasa dehte to ek real estate company ko, wo paasa, wo kain aur invest kar deta tha aur aapka projekte boh look jata tha. But now because of vera, a lot of transparency has been brought into the sector. So, people have started to trust now the decriminalization of minor economic offenses simplifying the process, tax policy reforms like faceless assessment and faceless appeal, GST reducing corporate tax, removing the dividend distribution tax. So, is tari ke reforms laye gayi? So, that people can trust the government. Eke to faceless assessment and faceless appeal mein kya hotata ki pehle aapke assessment ke liye. For example, aapno mai kingdom tax department ko official ho. Maine is aadne ka SS kia. To mai usko harasmi kar sakto, because I know that I am whom I am assessing. But ab kya hai, the computer automatically appoints any person to assess any person. Usse jo pehle discretion tha ki chalo tige, to moche duhshmani liye, tax assess karta hain. But now it has been made faceless. So, again the use of technology for trust building. Aap deek sakto GST, GST aagin bhi parenge, but GST ke tari ke se, it has emerged as a very stable tax. To dekho ye aapka average monthly, matap ek maine mein on an average kithna collection hota hai. To dekho pehle ye 1 lakh se kum tha. To har maine 1 lakh karoor se kum collection hota tha GST ka. But aaj amara ye 1.5 lakh karoor par a month ka average tax collection ki tada humno F by 23 mein bahar raha hai. So GST was again a big bang reforms. Shuro be dikkate aai implement karne mein, but aaj dekho, kis tari ke se GST as revolutionize the indirect tax regime. Then promoting the private sector. So, private sector ke liye bhi, jo ye to 1991 se maana chal raha hai. Privatization of Air India kya gaya. Aur bahar bhi bahar saare PSUs ko bhi aap privatize kar rahe. Aur satsata aapko pata government ka new public sector enterprise policy aaya hai. Is policy ke liye government dekha hai ki keval 4 sectors mein, jo strategic sectors hai. For example, jais aapka ho gaya atomic energy, space, defense. To aise 4 strategic sectors mein, hum lo keval ek PSU rakhayin ge. Aur baaki jitne bhi non strategic sectors hoon mein saap PSUs ko hum lo bandh kardenge yaa sell kardenge. So, only in 4 strategic sectors, there will be 1 PSU. And in non strategic sectors, all the PSUs will be closed or it will be sold to any other person. Tk. Then enhance India's manufacturing capabilities. Hame pata manufacturing ka target kitna India ka? It has to be raised to 25% of GDP. By 2025, yeh aap bahut bara target hain. Kiki jah manufacturing bhareega, tabi employment bharegi. So, manufacturing sector ke liye government ne aap bhiro Bharat scheme laaya hai, making India laaya hai, production-linked incentive scheme laaya hai. Kiki national logistics policy laaya hai, jis kain the logistical cost. Logistical cost, matap cost, which is incurred during the time of transportation. To bhar yeh pen, ek statement hai, to dhuzhre state mein, usko leh jaane mein, jo khar chata so kate logistical cost. Aur India ka target hain, 16% hain abhi of GDP. Isko gata ke hain main 9% karna hain by 2024. So, amara India ka logistical cost kaphi zada hain because of poor infrastructure, road, railways uska ache se hain hain hain humara. Isli logistical cost bhohot zada bhar chata hain. Isli saman ka dam bhi bhar chata hain. To usko kum karne ke liye logistics ko improve karna parega. And that's what its target is. Then opening the strategic sectors, right, opening the strategic sectors such as defence and other things, mining and space and private sector. Support measures for MSMEs such as emergency credit line guarantee scheme. This scheme is very, very important. And this scheme we will be discussing in coming chapters. So MSME ko liye pandemic ke samain. MSME bohot critical sector hain. 50% manufacturing ko contribute krta hain. Largest employment generate krta hain. Isli usko bachane ke liye, usko support karne ke liye ek flagship scheme laaya gaya government ka MSME sector ke liye. Tkya. Then 100% FDI na the automatic route. To bohot zada aise sectors ko operate kya gaya FDI ke liye. Automatic route ka matab you don't need the approval from the government. You can directly invest. Tkya. And because of all these reforms, private sector ko participation has increased. Right. And that's what you can see. FDI jo yamaara gross FDI by GDP. Tkya FDI by GDP ka ratio nika logon to pehle lagbal on an average 2.2% of GDP tta. But aaj since F by 14 se jab BJP government hain tabse leke hain abhitha 2.6 ho chuka hain. So because of all the things, people from abroad also are optimistic about India because of these reforms. FDI ka growth humara increase kua hain. Then 4th last pillar jo hain ispe yamaara enhancing the productivity of agriculture. Tkya. Iska purpose kya hain ruler development ko ensure kya. Tkya. Aur iske liye aapko bata hain. Government ne bohot saale agriculture mein reforms lain. To humara average annual growth jo hain boh 4.6% raha last 6 se yas pe average growth. Originalli humara agriculture ka target kitna hain. Yeh ghar harsal agriculture 4% se grow kare. To humara GDP 8% se grow karta hain. So ghar 4% grow kara toh thik hain. And that has been the case 4.6% se on an average jhamari agriculture ke GDP grow ki hain. Kyu grow ki hain itne chhise because of good monsoons and various reforms jo government ne lain hain. Kon kon se reforms government ne lain hain humara optimize the, reduce the cultivation cost. Cost ko kum karing uske liye soil health card, micro-irrigation fund, organic and natural farming ko promote ki hain. Yeh aage dekhenge humlok apne agriculture ke chapter mein in the economic survey. Tkya. Uske baat FPOS, Farmer Producer Organizations and E-NAM that is E-National Agriculture Market. Again yeh saale cheezo ko humlok apne aage aane wale chapters mein detail mein discussion karenge. Tkya. Agri Infrastructure Fund jo ek lakh karoor ka fund banaye gaya tha. Is tarige se agriculture mein infrastructures ko kreate kya jaase kye such as cold storage. Tkya. And other things. Kisan Rail, tkya ki jo product, product hain jo perishable products hain jo jaldi sar jaate hain un products ko easily transport kya jaaye. Then cluster development program and support for creating the startup ecosystem in agriculture and allied sector. So all those reforms has been brought to the agriculture sector. But one thing which we should note ki surveyin has categorically excluded the three farm laws. The three farm laws ke baare mein, the survey has not talked about it. I think so the survey might be some reasons ki survey ne un team reforms ke baare mein bilkul charcha nahi kya hain ispore apne topic mein. But that reform was also very good in nature. But the survey has not talked about that reform. Tkya. Now, itne reforms huin. Tkya nahi. Chaar reforms huin hain hain hain dekhne ko mila main. Tkya. First, creation of public goods. Tkya. Uske baat second, trust based governance. Third, promoting the private sector. Zyada zyada private sector ko include karo and agriculture reform karo. To itne reform ke baav jood, jo dividend, jo profit, jo economic reforms aana tha jo GDP gro karna tha 10% se, 9% se, 8% se wo nahi hopara hain. Ho nahi hua. Aur uske reason ap survey discuss kar tha hain ki why it was not able to happen. Why it was not able to happen. Dispise sabse pehle aapko dekhna padega. Tkya. So, what question we are trying to address? Ki despite all the reforms, despite all the reforms undertaken by the government during 2014 to 2022, the growth did not, the growth did not happen as expected. Tkya. So, despite all the reforms, wo jo chaar pillars of reform tha, the growth did not happen as expected. Jo expected tha utna growth hua nahi. Kiung. Iska reason jo hai wo survey deta hain. Do reason. Ek to sabse bana reason hai legacy issue kaya tha hain. Legacy issue matlab jo UPA ke era mein aayata. Wai legacy issue hain. Aur second pandemic uske baat conflict in Europe. So, these are the major issues why ye reform iss same dekhne ko nahi mila. So, legacy issue pahle dekhne legacy issue baat kar hain twin balance sheet problem. Twin balance sheet problem. Tkya. Ye ek bohat bana problem tha jo jab ye government aayati to iss problem uske saath bhi aaya tha. Because ye problem pehle se chal raha tha, to ye government jab aayi, to ye sabse bana problem tha government ke pas. Aur issi problem ko government ne pichle paat 6 saal mein thik kia. Aur jab ye thik ho hi raha tha, tap ye aaya gaya. Tkya. So, ye problem ko pehle government ne thik kia, ye government ne problem thik kar diya. Now, this problem is not there with India. Now, the growth was expected to happen because this problem was eliminated, this legacy issue has been resolved. Aur jaisi ye sab cheez ho gaya, uske baat nahi problems hain. Tkya. So, ye survey kaya tha ki, jaisi ye bhi ye wale problems khatam ho jayenge. Ye problem to khatam ho gaya. Now, whenever by 2023, maal no kaal conflict in Europe look jaata hain. Seize fire ho jaata hain. Pandemic ka baal no koi naaya wave nahi aata hain. So, after 2023, when India will enter into, when India is in its amrit kaal, India will progress at a much more higher growth than anyone can expect. So, sab sab bahile samasthe pehla problem, ye sab problem to kliari ye, ye problem samasthe what is twin balance sheet problem. Twin balance sheet problem. Isme deko hua kya? Ki 1998 se leke, 2002 tak. Government ne bohar saare reform kiye. Tkya. Lekin ussame reform ka outcome aaya nahi. Lekin amne dekha kis tarike se 2003 se leke, 2007 ke beech me. Amara reform dekhne ko mila. Amara reform dekhne ko mila. Lekin iske baat ki aaya aap ke pas, 2008 me, global financial crisis aaya. Tkya. Global financial crisis aaya. Tkya. Ab samajte hain isko thona aur detail me. To pehle reform se hain. 2003 se 2007 ke beech me India kaafi acche se grow kia. 2008 me global financial crisis hua. Ab deko yaha pe kya hua? Yaha pe economy kaafi thik chal dege. Ye ek jo dor tha, ye jo seme tha, ye India ke li kaafi accha tha. Indian economy was growing at a very good pace. So, jab aapki economy itne acche se grow karti hai. So, lot of people become optimistic. Ye ha to sab kuch achcha hoga. Ye to best hai. To iss case me kya hua, bohot saara FDI aaya India me. Aur sati saat, bohot saare industrialists, naya-naya investment kia. Tkya. Bohot saare industrialists ne naya-naya investment kia. Aur bahar se bhi bohot saata paise aaya. Because every people were started to feel optimistic about Indian economy. Because Indian economy sahi me acche se grow kara tha. Tkya. Lekin phil problem kya aaya ki ye jitne bhi industrialists ne invest kia. Invest kese kar hoge aap loan ke form me. To un saare industrialists ne bohot zada loan le liya. Because sab ko laga ki India kata growth aachuka hai. Aapto India grow kareega, bohot tez rate se grow karega. There is no problem. So, let us take loan. Lone leke chalo hai bhi banate hai. Loan leke ports banate hai. Loan leke railway ka naya patri bhi chate hai. Jo bhi karna hai karo. So, every people were optimistic. Every industrialists were optimistic. Global investors were very optimistic. And that's why huge investment was there. And support investment, a huge loan was there. Huge loan was taken. So, bohot zada loan leya gaya. Lekin gradually kya hoa? Ye jo optimism hai. Ye jo growth tha, it come to halt. The growth come to halt. Aap problems aane start ho gaya. By the end of 2006-7. Us saame kya hoa? Ye jitne bhi loan thayin. For example, highway banane ke liye bane loan le rakh hai. But highway banane ka ka kaam ruk gaya. Kyi ruk gaya? Environmental clearance ne mila. Tkye to aise, bohot saare projects ruk gaya. Aur jya 2008, global financial crisis aaya. Aur zada projects ruk gaya. To iski wade se ye jo loans thayin. Ye bohot zada ho gaya thayin. Private people kye ho. Isi kum lo kaya thayin. Over leveraged. Over leveraged. Corporate balance sheet. Balance sheet. Matab jo corporate sector hai, bohot zada over leveraged tha. Matab bohot zada usne loan le liya tha. Tkye. Ab wo loan chukaan nahi para hai. Tkye. To loan chukaan nahi para hai toh problem kis ke pas ho gaya? Banks ke pas. To banks ke NPS bernas start ho gaya. Tkye. Because now these people are not able to pay their loan. Loan toh le liya tha optimism mein. But aaj wo project deliver nahi kare ho. Aaj external shocks lag gayain. Global financial crisis jas se. Domestic shocks main. Environmental clearance, land acquisition, wo saare issues atang gayain aapke. To ab, jo corporate balance sheet hai. Wo toh already bohot zada loan le rakh hai. Because it is highly over leveraged. So now, iska toh maximum kya ho ka? Sada paisa intres chukaan nahi mein kharch ho raha hai. Toh yeh naya investment kya kare hain ka? Toh isne praya investment kar karte karte kya poora. Tkye hai hindi paisa invest karne ke liye hai. Banks ke pas NPS bernas lagin. Toh banks ke bhi jo balance sheet hai wo bhi kharaab ho gaya. Tkye. Toh balance sheet of corporate sector wo kharaab ho gaya. Because it was over leveraged, highly over leveraged. Help company 100 rupee ka loan le rakh hai, 200 rupee ka. Because sare banks ne bohot zada optimism mil loan de diya. Toh abto uska halat kharaab hai because maximum payment jo hai uska interest rate praya hain. Aur yaha pe kya ho rahe banks ke NPS kaafi zada increase ho gaya. Toh banks ke bhi balance sheet afet kare gaya. So this is known as twin balance sheet problem. When the balance sheet of corporate sector and banks donohi deteriorate kar kare. Donohi deteriorate kar kare. Tkye. So that is known as the twin balance sheet problem. Aur yaha hi legacy issue tha. Toh jab 2014 mein government aaye, toh 2014 se leke 2014. Isi period mein aapka NPA bara. For corporate balance sheet afector tha toh investment poora khatam ho gaya. Isli government te survey ne kaha hai ki the government ka pehla important problem kya tha ki is legacy issue ko resolve karna. Isli government paah 6 saal mein abhi is poore problem ko reform ki hai by bringing new new policies. Lekin jaisi ye problem khatam hoa, banks ke NPS khatam hoa corporate balance sheet improve kiya. Now they were not over leveraged. Lekin phit pandemic aagaya aur phit war agaya conflict mein. Isli wo progress rukya. So this is what the survey talks about. Dekho aamara. If private sector depth to GDP ratio went from 72.9 to 103.6% by December 2010. Socho itna zada private sector mat isi wo kaya the over leveraged. Lekin ho depth to GDP ratio 72 se kitna ho gaya 113. That means over leveraged. Isi ko over leveraged kaya dek. Soon as the credit and investment book proved unsustainable. Unsustainable ka matla bahi. External shocks, internal shocks, land acquisition, environmental issue. Tk, another things happened. The twin deficit prices of 2013 tribune. So, 2013 mein aur boh bada crisis nahi aaya tha. Pat ek crisis dekhne ko mai la, twin deficit. Twin deficit prices ka matla ba maara fiscal deficit aur current account deficit. Jaya bhiye dono deficits ek threshold ko cross kar jaatne hai. To usko mno kaya the twin deficit problem. Fiscal deficit and current account deficit. Okay. As the investments made by companies went sour, matlab jab investments kharaab hone langin, it impaired their ability to repay back the loans. Ab wo loan chukaani par hai, because unke investments attakge hain. Hence, banks NPS started to rise. And because of that, banks credit supply was severely constrained. Ab banks kapas itna NPA hai to banks extrap loan degi kya se. Aur loan degi nahi to new investment nahi aayaega. To jo ache companies hain, wo bhi invest karna chaare hoonge. To wo loan nahi jayenge banks kapas banks loan ke li mana kar degi. Because banks kapas khut itna NPAs aach chuka hain. So that's why the banks credit supply was severely constrained due to the stress in their balance sheet during the second decade. That is 2015 se leke 20 tak. Isi liye humara yaha pe aap dekhonge, investment aa nahi paya naya. Because investment kail sapsi important hai aapko banks ko loan dena chahiye. But banks loan dehi nahi nahi nahi thi, because of that, the investment completely committed to a halt. Isle India ka manufacturing sector barha nahi. Isle GDP usleht se bahad nahi rahi thi. Tike, because of that. This has led to a long period of repair. Isle government is poore repair kiya. Financial matlab banks ke balance sheet ko, and non-financial matlab corporate sector ke balance sheet ko. In the second half of the last decade from 2015 to 2020, kya kya reforms? Amendments to the Sarfisee Act, insolvency in bankruptcy. Kodi aage dekhenge asset quality review. Tike assets matlab banks ke assets kya hota hai. Jo banks ke loan dehi hai. To uska timely review koro. Kya wo loan sahi main asset hai. Kilaibiti banura bank ke liye. Then Prompt Corrective Action. Tike, Prompt Corrective Action bhi, aange jake dekhenge. Apo, news mo patto, Prompt Corrective Actions. So, Prompt Corrective Actions kya hai, jabbhi RBA ko lakta hai ki this bank is not performing well. To RBA imposes this Prompt Corrective Action framework ke andar, us bank ko leaati hai, aur ske baad banks ke upar regulations ko barha diya jata hai. So, this Prompt Corrective Action basically depends upon us bank ka net NPA kitna hai. Uska capital adequacy ratio kitna hai. Uska leverage ratio kitna hai. Ye sab aage pahing hai hum nu. Tike, so these reforms were brought. Then Recapitalization of Public Sector Banks. Tike, Public Sector Banks ko zyada Government ne support kiya paise diye so that aap further loan ko aage barhao. So, these were the reforms. Matam, yeh yeh kya reform kya jaya hai pe Twin Balance Sheet ko thik kya jaya hai aapke. Now, thanks for about to improve, but then came the collapse of the NBFC, ILFS, Infrastructure, Lending and Financial Services. So, yeh bhi financial and leasing services, Infrastructure, Finance and Leasing Services. To iss sector me bhi humara kya hua, aapko bata 2018 me collapse kar gaya. To ek to legacy su chala hai aata, banks ka. Up NBFC me bhi crisis aag liya. What are the difference between banks and NBFC? Tike, to be basically aage dha ke parenge difference, but NBFC ka kya relevance hota hai banks ke lawa. Because ek to NBFC long term lending detnein, tis saal ke liye, 40 saal ke liye. For infrastructure projects. Aur sati saath NBFC ka jo, jo logo ko loan detein hai, ko kaafi un logo ko detein hai, jin ko banks se loan nahi milta hai. Tis le NBFC gives loan to much more riskier sector. Tike, uska bahi kaam hai. Tis le NBFC ka reach kaafi zada hota hai logo ke beech mein. And other differences are there. We will discuss, we will discuss the banking sector. Tike, to yeh set crisis ke baan, ek hoa bata crisis aag liya banking sector, yeh poora financial sector me, ki NBFC crisis aag liya. Tike. To yeh saaf cheez ho sa aam nuk thik karte legacy issue ko khatam kari rehte, ke kye aur neya issue aag ye 2018. And then the pandemic struck, and then conflict of war in Europe. So legacy issue thik ho raha hai, ke 2018 mein NBFC crisis, uske baat yeh dono cheez. Aur issi ki wajar se, the period of 2014 to 2020 is analogous to the period of 1998 to 2000. To bahi cheez hai, issi yeh iss poore period mein jo GDP ka growth rate hai, ho boh zata dekhne ko nahi mila. Tike, because of all these things. Lekin aap all these problems have been removed. Aur dekhon pandemic ke new waves aane rahe hain. Conflict of, jo war chal rahe hai, yeh poora problem hain, yeh pata nahi kaha jaayega, but if the war also stops, to maa balance sheet ikdem thik hai, NBFC crisis ko bhi resolved kar diya gaya hai. So now all those problem, all those shackles, everything has been removed. Now it is a time of India to take a big leap in our economy after 2023. Iske baat last maan luk dekhenge, growth magnets in these decades. So what are the growth magnets? So sapsa pehle drivers of India's economic growth. To healthy balance sheet, to aaj amara balance sheet kaafi thik hai. So digitization, reforms jo government nahi hai by the public goods infrastructure. Government ne skilling initiatives kiya hai, usko kya fayda hai, because India wants to be the demographic dividend. Aapko pata, India is a young population. Aur usko skill karke hi, hum luk skill capital bhenge bolka, to boh sara industries yaha pe aayinge. So employment generate hoga, and other things like that. Evolving geopolitical situation, aapko pata hai ki during this pandemic, every country has realized that they need to be less dependent on China. To boh sara countries jo China ki opa depend karethe, aap saare countries apne factories ko bahar leh rahin. So they are trying to diversify their supply chain, to wo jayenge kaha. They will come to India. So this is the evolving geopolitical. See the more and more people become skeptical about the Chinese economy, more and more people want to get rid of their dependence on China. So it will benefit whom? It will benefit India. And that's why the evolving geopolitical situation is also supports the India. Lastly, further reforms are also needed. So Sarve says ki kuch aur reforms chahiye hain hume. Dismantle the licensing, inspection and compliance regime. Aur jitne bhi restrictions hain, rules hain. States aapko discomps aur power sector ko reform koro. Discomps aapko pata jo distribution companies hota hain electricity ko. Sapsi problematik area hain aare electricity ke power sector mein. Yaha poha zada loan hain discomps ke pas. Aur discomps ka generally, states responsible hota hain discomps ko manage karne ke liye. Aur discomps jabtak reform hoga nahi, tabtak electricity sector achar se reform hoga nahi. Isse Sarve kaya tha ki state should reform the discomps sector. Then education and skilling pe fokus karna chahiye government ko. And also that education and skilling should be done by keeping in mind the requirements of the 21st century. Yaha say AI, ML, drones, robotics. In mein logo ko zada-zada education or skill provide karna chahiye. Healthy lifestyle should be continued because you know that India ko non-communicable disease ka burden hain. Diabetes and hypertension. Inka kaafi zada increase kar raha hain because of our urban lifestyle. So usse kya hoga ki economy agen growth pe effect perega. Isli government ne kaya ki healthy lifestyle ko promote karna chahiye. Sati saath long-range plans due to formulate the necessary metals and minerals. Ike aaj jo nahi nahi metals itse lethiyam ho gaya, kobalt aag gaya. So yeh sab aaj nahi metals itse jitki bohz aaj zarbaat hain. Ispe bhi India is highly dependent on China on Latin American countries. So kis tarike se India ispe bhi aath nirvar bhare. Aath nirvar bane usko abhi reform karna perega. Then public sector asset monetization ko reform karna perega. So asset monetization scheme to government le aaya hain. But usko successful banana hain. And then sati saath MSME sectors ko bhi kaafi zada reforms ki zarbaat hain. So the survey also gives the certain reforms. So but at the end, to iss chapter ko meh is tarike se discussion kiya hain. Yeh jo PDF aap ka, yeh prelims as well as mains dono ke li relevant hain. Aur yaha pe aam ne har ek aspect se baat kiya hain. Jitli cheeze mein survey mein mention kiye gayi thi jo man exam ke li relevant hain. Everything has been mentioned over here. And the summary of this chapter is that ki India ka jo reform hain wo 1914 se leke 2022 tak. Is government ne kaafi zada structural reform, governance reform and macroeconomic reform kiya hain. Woos reform ke chaar pillars thin. But because of but despite all those reforms to dividend we would have got from that reform that was not there because of many external shocks and legacy issues. But now when all the things has been resolved, when the dust is started to get settled down, now the India's time has come that after 2023, India will take a big leap in terms of its economic growth and the real potential which India has, now it will be reflected when India enters or India will have in its amrit kaal. So in the next lecture, we will be talking about the chapter 3, which basically discusses about the fiscal development. So I hope you like this, you like this lecture. Please like the channel, subscribe to our channel and be tuned to follow all these series which we will be having on the economic survey. So thank you all of you. Don't forget to like, share and subscribe to our channel and press the bell icon to never miss an update.