THE GIST of Editorial for UPSC Exams : 01 February 2020 (Unfounded optimism: On Economic Survey’s GDP forecast (The Hindu))

Unfounded optimism: On Economic Survey’s GDP forecast (The Hindu)

Mains Paper 3: Economy
Prelims level: GDP forecast
Mains level: Highlights the GDP forecast that based on economic survey

Context:

• As a report card-cum-blueprint for the future, Chief Economic Adviser (CEA) Krishnamurthy Subramanian’s Economic Survey 2019-20 is a mixed bag of interesting diagnosis combined with some optimistic prognostication.

Highlights about the forecast:

• Seven months after his maiden survey, he finds himself again having to assess the economy’s health and provide signposts for the agenda ahead.
• July projected real GDP growth rebounding to 7% this fiscal, acknowledges that 2019 was a difficult year for the global economy, including for trade and demand, and by extension a challenging period for the Indian economy as well.
• The Survey concedes..........................................

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Way ahead:

• To ensure smoother functioning of markets as creators of wealth, the Survey makes several policy prescriptions.
• It asserts that the Drug (Prices Control) Order of 2013 has failed to achieve its aim of making drugs affordable and needs to go. And the CEA wants a complete review of the policy on foodgrains, which he argues has made the government the largest “hoarder” thereby distorting these markets.
• All are suggestions that traders and market players, a key electoral constituency, will cheer, but may be fraught with risks.

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  General Studies Pre. Cum Mains Study Materials

Prelims Questions:

Q.1) Consider the following statements:
1. Mesothelioma is a form of cancer that occurs in the infection-fighting cells of the immune system.
2. Asbestos exposure is the primary risk factor for mesothelioma.
3. Asbestos is a chemical by-product of talcum manufacturing.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) All the above

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Mains Questions:
Q.1) India needs to move beyond the inflation targeting in its monetary policy. Discuss.